PSE’s net income inches up despite ‘unusual’ low trading volume

MANILA, Philippines – The Philippine Stock Exchange Incorporated (PSE) saw its net income inch up by 1.6% to P372.70 million in the first 6 months of the year, despite experiencing an “unusual” low level of trading during the period.

“There was a slow start in terms of trading volumes and an unusually low level of trading at the beginning of the year,” PSE Chief Executive Officer Hans Sicat said in a media briefing in Makati City on Monday, August 15.

PSE reported that its net income for the first half of 2016 was P372.70 million, up by 1.6% from P366.84 million in the same period in 2015.

Its income from other sources rose and lower expenses were able to offset the 13.9% decline in PSE’s operating revenues from January to June 2016.

Its operating revenues only closed at P560.81 million in the first half of the year, due to lower income from listings and trading.

Listing-related income dipped by 14.3% in the first 6 months of 2015, as fund raising through equities were put on hold due to volatilities and uncertainties ahead of the May national elections.

Average daily value turnover for the 6-month period was at P7.51 billion from P10.04 billion a year ago.

This contributed to the 11.2% decline in trading-related income and 22% dip in service fees, Sicat said.

Meanwhile, PSE said its other income increased by 41.5% to P156.41 million due to higher gains in investment income.

A sunnier second half

“We have seen trading activity pick up together with listings, following the May national elections,” Sicat told reporters.

“This renewed interest in our market, together with the new products we hope to launch this year, should bode well in the improvement of our financial performance in the second half,” he added.

Costs were effectively managed as total expenses in the first half were lower by 8.3% to P271.66 million.

Target of P200B capital raising ‘on track’

The chief of PSE also said that the company is on track to raise its P200-billion target before the year ends.

“We have not changed our P200-billion target. That includes follow-on offering,” Sicat said after the briefing.

As of last week, Sicat said PSE has already generated P91 billion in capital-raising activities.

Two companies have so far made their debut to the local bourse this year: Golden Haven Memorial Parks Incorporated in June and Cemex Holdings Philippines Incorporated in July.

Sicat said he expects more companies to go public in the second half of the year.

The Philippine unit of Royal Dutch Shell Plc plans to go public and raise as much as P29.7 billion by offering 300 million primary shares, with a listing date of November 10.

Other companies that have pending initial public offering (IPO) applications include: TVI Resource Development (Philippines) Incorporated, Pointwest Technologies Corporation, and Green Power Panay Philippine Incorporated.

“We are hopeful that we can get more investor participation once products and services, like the Dollar Denominated Securities, Real Estate Investment Trust, and Public Private Partnership Company Listings are introduced,” Sicat said. – Rappler.com