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10/04/2010
The Philippine Stock Exchange index (PSEi) soared 34.3 percent or 1,047.39 points for the year until Sept. 30, making it one of the best performing indices in the Asian region.
Quarter-on-quarter, the PSEi jumped 22 percent to cap a phenomenal period at 4,100.07. The PSEi also broke new records, setting a new historic high last Sept. 28 at 4,123.95.
In the nine-month period, market capitalization of all listed companies grew to P7.4 trillion from P5.9 trillion in the same period last year. Based on initial estimates, the average daily value turnover for the nine-month period grew to P4.6 billion from P3.5 billion the previous period. Preliminary figures also showed that foreigners were net buyers at P11.4 billion during the nine-month period.
PSE president Val Antonio Suarez said the unprecedented market performance has reflected the robust fundamentals of the local economy.
“In particular, benchmark interest rates, which were maintained at a low of 4.0 percent for overnight borrowing and 6.0 percent for overnight lending since July 2009, have enhanced liquidity in the capital markets,” Suarez said.
From a gross domestic product (GDP) growth that slowed to 1.1 percent in 2009, GDP accelerated by 7.9 percent during the first semester of 2010. The 91-day benchmark and inflation rates have also remained benign. The latest three-month T-bill and headline inflation rates both averaged at about 4.0 percent in September.
In terms of sectoral indices, the Holding Firms index emerged as the best performer during the nine-month period as it climbed by 93.1 percent. This was followed by the Property index which jumped by 45.3 percent. Not to be outdone were companies in the industrial, financials, mining and oil and service sectors as their indices posted impressive growth rates of 40.1 percent, 40 percent, 14.8 percent and 7.2 percent, respectively.
During the nine-month period, companies raised a total of P59.1 billion in the stock market, a 690.3 percent improvement from the same period last year. Companies that raised capital from the stock market included Bank of the Philippine Islands, First Gen Corp., Interport Resources Corp., PetroEnergy Resources Corp., Petron Corp. and Semirara Mining Corp. for the period. Two companies, Integrated Micro Electronics Inc. and IP e-Game Ventures Inc. also conducted their maiden listings by way of introduction this year at the stock market.
“We are encouraged by the performance of the stock market as this paves the way for new public offerings and listings. It also reinforces the direction we have taken to steer the Exchange toward new levels of progress,” Suarez said.
The Securities and Exchange Commission (SEC) recently approved the PSE’s Listing Rules for the Real Estate Investment Trusts (REITs) or companies that own and operate income-generating real estate assets which will be listed on the stock market.
Last July 26, the PSE launched its New Trading System (NTS), replacing the legacy MakTrade system used since the 1990s, which will enhance PSE’s product range, trading performance and volume capacity. Investors trading on PSE markets will have direct access in the future to a wider range of cash, debt and derivative instruments from one single platform that was not available previously.
The PSE has also integrated its offices in Makati to improve the efficiency of the Exchange’s operations and reduce its occupancy and operational costs.
The PSE also continues to promote good corporate governance as it is establishing a “Maharlika Board” to further motivate companies to undertake higher standards of corporate governance wherein the PSE Board of Directors also earlier approved the spin-off of market regulation into an independent and self-regulatory company to monitor activities of trading participants.
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