Capital raising at PSE seen hitting P88.54B

CAPITAL raising activities at the Philippine Stock Exchange (PSE) will likely end 2024 well below last year’s level but the bourse is optimistic of a turnaround given planned product offerings and a shift in investor sentiment.

Ramon Monzon, PSE president and CEO, told a Manila Times forum on Tuesday that an estimated P88.54 billion was expected to be raised this year, down from the P140.95 billion recorded in 2023.

“As of October 15 this year, we have raised only P76.84 billion through three IPOs, one stock rights offering, six follow-on offerings, and seven private placements,” he said.

“Looking ahead, we have an additional 11.7 billion in capital raising activities in the pipeline,” Monzon added.

These include one initial public offering (IPO), three follow-on offerings (FOOs), and one stock rights offering.

Cebu-based Top Line Business Development Corp. has received regulatory approval for a P2.87-billion IPO next month, which will be the fourth such listing this year following OceanaGold (Philippines) Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.

Three FOOs, meanwhile, are forthcoming from Arthaland Corp. (P3 billion), DITO CME Holdings Corp. (P1.97 billion) and Steniel Manufacturing Corp. (P315 million).

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

The Manila Times holds its year-end economic forum ‘Continuing growth, quality jobs, and record-low poverty rate’ at the Dusit Thani Manila on Oct. 22, 2024. Speaking at the event were Dennis Lapid, Bangko Sentral ng Pilipinas officer in charge of the Department of Economic Research; Neil Adrian Cabiles, Department of Finance assistant secretary at the Office of the Chief Economist; Ramon Monzon, Philippine Stock Exchange president; and James Villafuerte, Asian Development Bank regional lead economist. Budget Secretary Amenah Pangandaman served as the keynote speaker. Times vice president for sales and marketing Roda Zabat and President and COO Blanca Mercado were also present. PHOTOS BY J. GERARD SEGUIA

Arthaland and DITO are set to list their follow-on offerings next month while details for Steniel’s FOO have yet to be released.

Phinma Corp., lastly, is planning to raise P1 billion via a stock rights offering to fund for its business unit projects and investments in new ventures.

Despite the decline in capital-raising activities, Monzon said the benchmark PSE index (PSEi) was still up 15 percent year-to-date and that the dividend yield index and the MidCap index had also grown.

“As of October 18, the dividend yield index, composed of the top 20 dividend-paying companies, grew by 29.6 percent year-to-date, while the mid-cap index, which includes the top 20 mid-sized companies, also rose by 29 percent year-to-date,” he said.

As of September, meanwhile, average daily value turnover was said to have increased to P6.23 billion, up 2.2 percent compared to the P6.09 billion average in 2023.

“At the same time, the market has also shifted to a net foreign buying position, amounting to 4.74 billion pesos, which is a turnaround for the 53.65 billion net foreign selling during the end of 2023,” Monzon continued.

The share of retail investors’ trades also increased to 19.4 percent from 18.4 percent, while foreign transactions comprised 45.8 percent of total trades, higher than last year’s 43.9 percent.

The Philippines leads year-to-date index performance across Southeast Asia, Monzon said, but remains lagging in terms of number of listed companies and value turnover, which he said were indicators of low liquidity.

Despite having 1.9 million individuals registered as stock market investors compared to 1.1 million individuals with time deposit accounts, value turnover for the first half only amounted to P1.384 trillion compared to time deposit accounts totalling P5.628 trillion.

“Hopefully, as time deposit rates go down in line with the rate cuts implemented by the [Bangko Sentral ng Pilipinas], more of these time deposit funds will flow to the stock market,” Monzon said.

In the next two years, the PSE will be offering new products such as Global Philippine Depository Receipts to allow local investors to diversify their portfolios by trading foreign securities within the domestic market.

This is targeted to be launched in the first quarter of 2025.

The bourse is also looking to introduce derivatives trading as early as next year, which will help investors hedge against market fluctuations and also enhance market transparency and liquidity.

The PSEi earlier this month hit an over four-year high of 7,554.68 but has since retreated to the 7,400 level. It closed Tuesday up 0.09 percent at 7,413.16.