PSE likely to miss 2014 target
MANILA, Philippines – Attributed to relatively smaller equity deals for the year, the country’s bourse said it will likely miss its P200-billion ($4.49 billion*) 2014 target.
“We (Philippine Stock Exchange) will end us less than that (P200 billion),” PSE president and Chief Executive Officer Hans Sicat said.
This year, though, had been a robust year for the stock exchange, Sicat added.
Although the average trading volume is lower versus the 2013 level, Sicat said foreign buying has been stronger this year.
At the start of the year, foreign funds shifted their investments out of emerging markets like the Philippines to developed markets.
But foreign investors started going back to the Philippines in the middle of the year due to the positive outlook on the domestic economy.
“Net foreign position in the Philippines increased by 160% over last year’s same position. So while average trading volume had gone lower, we had more issuances this year although the average size is slightly lower,” Sicat said.
The PSE was still optimistic until October that it will hit the P200 billion ($4.49 billion) capital raising target, which includes initial public offerings, stock rights offerings, preferred shares offerings, private placements, follow-on offerings, and top-up offerings.
But the concerned companies either reduced the size of their offerings or did not exercise the overallotment options.
Some transactions had experienced delays in securing regulatory approvals for their equity deals, Sicat said.
Capital raised through the stock market amounted to P128 billion ($2.87 billion) as of end-September.
For this year, 7 companies were listed in the stock exchange – 5 through IPOs and the other two by way of introduction.
The two companies that were listed by way of introduction were Top Frontier Holdings Inc and and Trans-Asia Petroleum Corp.
Companies that sold preferred shares include Ayala Corporation, Petron Corporation, Megawide Construction Corporation, and Globe Telecom.
Ayala Corporation, SM Prime Holdings Inc, Bloomberry Resorts Corporation, and Belle Corporation conducted top-up offering and sale of treasury shares. – Rappler.com