THE required full disclosure of business transactions could be one of the reasons local businesses hesitate to enlist in the country’s stock exchange.
“Even medium-sized companies are required to disclose everything,” Efren Valiente, a former president of the Cebu Chamber of Commerce and Industry (CCCI), said during the Philippine Stock Exchange (PSE) forum held yesterday at the Waterfront Hotel and Casino.
But PSE chief operations officer Val Antonio Suarez said the full disclosure of business transactions is needed as this will build confidence among investors.
“The requirements are not insurmountable. These are achievable if the company wants to enlist. The requirement is really to relate the disclosure of information so investors know what they are buying,” Suarez told reporters.
He added the lack of information on what needs to be done to enlist in the stock market could also be one of the factors behind the modest membership in the country’s stock market.
“That is why we are here. We want to look for these companies who want to venture into public financing. We hope to attract more Cebu and Davao companies for they are underrepresented in the stock market,” Suarez said.
He reported that there are about 250 companies whose shares are listed and traded in the PSE since the stock market’s operation in 1994.
As of March 8 this year, PSE’s total market capitalization was recorded at P6.24 trillion.
The year-to-date daily value turnover, Suarez said, is currently at P2.67 billion.
Businesses, Valiente said, should avail themselves of the stock market’s services to help the country’s economy.
“The stock market is an indicator of the state of the economy of any nation. If it is fully developed, then it would also mean a developed economy,” he said.
The PSE’s composite index closed at 3,129.24 yesterday, the highest since February 2008.
While loan financing through banks is more widely known, PSE hopes to attract more companies to enlist in the stock market to help them access capital and enhance market visibility, credibility and their public profile.
PSE partnered with CCCI in conducting the free seminar to boost local participation in the stock market.
It will also hold a free investors’ briefing in Davao City today, on the basics of investing, online stocks trading, investing in mutual funds and listing in the PSE.
Listed companies are classified in three boards, including one that focuses on SMEs. Established in 1998 as a non-stock organization, since 2001, the PSE has been operating as a shareholder-based, revenue-generating corporation.