The Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) are working on a two-pronged promotional program that would address the lackluster performance of the stock market.
The program, according to SEC chair Lilia R. Bautista, would address both the "supply" and "demand" side of the market.
On the supply side, a campaign for the listing of more shares will be undertaken.
The PSE will approach big unlisted domestic companies to list in the Exchange under the more liberal, revised listing rules. Among those targeted by the PSE are companies registered with the Board of Investments, government corporations and borrowers of government financial institutions.
Bautista said in aid of the PSE, she has instructed Market Regulation Department head Jose P. Aquino to write the Department of Trade and Industry and the Development Bank of the Philippines, a major lender.
Bautista meantime said BOI had some reservations on mandating listing of all registered enterprise and would therefore need some guidelines to select such enterprises.
On the " demand side", the SEC said investor education plays a crucial factor. Bautista said the investing public needs to be more informed about the market and how to invest in the market.
President recently commended the SEC for its efforts to conduct provincial seminars and the PSE training of students on the stock market. She urged them to broaden their educational campaign to further encourage investors to take up equity investments besides saving in banks or being lured by pyramiding scams.
The President recently enacted Republic Act 9243 exempting stock transactions from the payment of documents stamp tax (DST). The measure will reduce transaction cost and is expected to boost liquidity in the market.
With the enactment of RA 9243, both the PSE and the SEC are hoping that more companies will be encouraged to list in the Exchange.
According to Bautista, the investing public is presented with only a few securities to invest in. She added there is a need for more companies to list in the PSE so there will be a vast of choices for the investors.
Last year, the PSE witnessed only four listings which include Makati Finance Corp., Supercity Realty Development Corp. , Transpacific Broadband Group, Inc. (TBGI) and Cashrounds Inc.
