PSE ends banner year, sees better 2014
December 29, 2013
While the Philippine Stock Exchange index barely ended the year in positive territory after recent selldowns ate up most of the gains made in the first half, trading activity in this year was actually much better than in 2012.
In an interview, PSE president Hans B. Sicat said numbers are expected to continue to grow in 2014 as the bourse aims to launch more products on the way to achieving its goal of becoming a world-class exchange by 2015.
“2013 really has been a banner year for the Exchange not just in terms of products and services that have been rolled out but the market response to our initiatives,” said Sicat.
He noted that the PSE now is a deeper market, registering a 45 percent growth in average daily trading value despite volatility on suggestions of the US taper.
“We also had a record number of issuances,” said Sicat citing that firms raised P175 billion in fresh capital through the PSE from P219 billion in 2012 in the form of initial public offerings, follow-on offerings, and private placements.
For 2014, Sicat said they expect capital raising activities to grow at least 10 percent to about P200 billion. The bourse is expecting about 10 IPOs next year with Frontier Oil being the first followed by some conglomerates and power firms.
“We’re hoping, it’s a loose target. We think of a 10 percent increment. We have a larger base now and we said there is better certainty about the taper, the taper being announced and how it was announced suggest it’s going to be a gradual Fed taper,” he said.
The daily average trading value on the PSE rose 44.9 percent to P10.52 billion in 2013 from P7.26 billion last year as foreign investors accounted for 51.09 percent of traded value or P2.6 trillion from 44.88 or P1.59 trillion in 2012.
Foreign buying rose 53.91 percent to P1.31 trillion this year from P850.16 billion in 2012 but foreign selling surged by 74.68 percent to P1.29 trillion from P740.18 million, resulting in an 85.83 percent fall in net foreign buying to P15.59 billion from P109.98 billion in 2012.
Sicat explained that a lot of foreign funds left the country during the last quarter. He noted that funds actually left most emerging markets in favor of developed markets such as the Eurozone and the United States.