PSE edges closer to 6,000 level

THE Philippine stock market set another record yesterday, the second trading day of the year. The Philippine Stock Exchange (PSE) index edged closer to the 6,000 level yesterday when it closed at 5,934.05, up 73.06 points or 1.25 percent. This level beat Wednesday’s finish at 5,860.99.

The PSE had a phenomenal year in 2012, fueled by improved corporate earnings, strong local demand, and continued macroeconomic stability.

At the end of 2012, the PSEi set new records for a total of 38 times and posted an annual growth of 33 percent.

In Asia, the PSEi ranked second, behind Thailand’s SET Index, followed by the benchmark indices of India, Japan and Hong Kong. This is an impressive follow-up for the Philippine index after occupying the top spot in 2011.

Capital raised at the Philippine stock market reached a new record at P219.07 billion in 2012, the highest amount raised since 2011. This figure is 103.8 percent higher than the amount raised last year. Capital raising activities include initial public offerings, follow-on offerings, stock rights and private placements.

Record

“The stock market’s performance in 2012 re-wrote the record books in a big way, as seen in the new highs we’ve experienced across almost all market indicators. Investor confidence in Philippines, Inc. is also at an all-time high, and this can only serve to strengthen our market as we tackle new challenges and opportunities in 2013,” said PSE president & CEO Hans Sicat.

Five companies conducted their initial public offerings in 2012, raising a total of P23.99 billion from the market while two listed firms listed by way of introduction.

Meanwhile, capital proceeds from private placement, stock rights offerings and follow-on offerings amounted to P50.38 billion, P 52.07 billion and P92.64 billion, respectively.

Total value turnover for 2012 was a new record for the exchange as it reached P1.77 trillion, 24.5 percent higher than the P1.42 trillion registered in 2011. The increase coincided with the extension of trading hours up to 3:30 p.m. starting Jan. 2, 2012.

The combined market capitalization of listed issues in the PSE at yearend came in at P10.93 trillion, up 25.7 percent from the P8.70 trillion registered the previous year.

Preliminary figures also show that foreign investors went into net buying territory in 2012 in the amount of P109.98 billion, higher than the net buying figure of P56.52 billion in 2011.

In terms of sectoral indices, the Financials index emerged as the best performer in 2012 as it surged by 57.5 percent. This was followed by the Property Index (up 55.6 percent), Holding Firms index (up 47.0 percent), Industrial index (up 25.5 percent), and Services index (up 6.7 percent). On the other end, the Mining & Oil index recorded the only decline among sector indices as it fell by 17.4 percent for the year.

Room for growth

“What’s most encouraging amidst the record-breaking numbers is that there’s still room to keep growing. The government continues to steer the economy to promising levels of sustained growth. For our part, the PSE has lined up several initiatives in the coming months to take advantage of the favorable business environment. Hopefully, this is just the beginning of a positive transformational phase that will lift the capital market to the next stage of competitiveness. It’s definitely an exciting time right now for the Philippines,” Sicat said. (PR)