MANILA, Philippines – The Philippine Stock Exchange Incorporated (PSE) saw its net income increase by 12% in the first 9 months of the year to P507.9 million on lower expenses and higher income from other sources.
The PSE said in a statement that its operating revenues from January to September declined by 7.5%, with listing-related income decreasing by 10.6%.
Trading-related income also dipped by 4.4%, while services fees went down by 12%.
The average daily value turnover for the 9-month period reached P8.06 billion, which is 14.8% lower than the P9.46 billion average during the same period in 2015.
“Global developments dictated the market’s movement in the third quarter. We saw foreign investors liquidate their positions and take a risk-off approach ahead of the September US Federal Reserve meeting and the volatilities in the commodities market,” PSE president and chief executive officer Hans Sicat said.
The lower operating income, however, was tempered by the 89.5% gain in other income to P165.93 million arising from the recognition of donated property related to the PSE’s move to Bonifacio Global City, and mark-to-market gains on investments.
Total expenses also registered lower by 5.1% in the first 9 months of the year to P417.43 million from a year ago level.
“We have seen one of the much awaited IPOs in November and we hope more deals could still materialize as we close the year. We will also continue to push for additional products and services to improve liquidity in the market,” Sicat said.
Since the start of the year there have only been 3 IPOs. These were Villar-led Golden Haven Memorial Park Incorporated, cement manufacturing firm Cemex Holdings Philippines Incorporated, and oil company Pilipinas Shell Petroleum Corporation.
Sicat lowered target capital raising activities at the local bourse to P185 billion this year from the initial target of P200 billion projected at the start of 2016 due to current volatile trading conditions. – Rappler.com
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