MANILA, Philippines--THE PHILIPPINE STOCK EXCHANGE (PSE) intends to
push ahead with an ambitious reform program this year as it rides the
crest of one of the best performing periods in its history.
In particular, PSE president Francis Lim said he was counting on the
combined benefits of newly-enacted investor-friendly laws and
technological innovations to help push the bourse’s performance.
“2010 will be the year where we will start reaping the fruits of our
efforts under the ‘Level Up’ strategic agenda like the full
implementation of the Personal Equity and Retirement Account (PERA)
law, the Real Estate Investment Trust (REIT) Act, the new trading
system and the securities borrowing and lending program that will
enable short selling in the stock market,” Lim said in a statement.
The Level Up agenda, which was launched in 2008, stands for the
following: List more companies and securities; expand and educate the
investor base; value and enforce corporate governance standards;
enhance shareholder value; launch new products and services; upgrade
market infrastructure and human resources; and partner with government
and other stakeholders.
“Right now, the PSE is not just riding a wave of recovery, but also
steering a speeding train of promising growth, hinged on the tracks of
a sound Level Up agenda,” he added.
For 2009, the PSE index recorded a growth of 63 percent, which is
the largest annual index increase since 1994 when the PSE first
operated as a merged entity following the unification of the Manila
Stock Exchange and Makati Stock Exchange.
Last year, the PSEi advanced by 1,179.83 points to end at 3,052.68 as of December 29, 2009.
Value turnover last year almost reached the P1 trillion peso level,
a level only achieved once before in the history of the local stock
market.
At the end of trading in 2009, total value turnover amounted to
P994.16 billion, 30.1 percent higher than the P763.90 billion
registered in 2008. Daily value turnover averaged P4.11 billion or 32.3
percent higher than P3.11 billion average in 2008.
The combined market capitalization of listed domestic issues in the
PSE at yearend appreciated by 48.2 percent to P6.03 trillion compared
with P4.07 trillion in 2008.
Preliminary figures also show that foreign investors were net buyers
in 2009 to the tune of P14.88 billion, representing a reversal from the
net foreign selling figure of P22.16 billion in 2008.
“We began 2009 with a cloud of uncertainty following a global
financial crisis that unfolded in late 2007 to 2008,” Lim said. “As the
year ended, we saw a strong recovery in the market which we are hopeful
will spill over in 2010 and beyond.”
In terms of capital raised, the PSE saw one initial public offering
(IPO) by Ripple E-Business International Inc. and two listings by way
of introduction by Century Peak Metals Holdings Corp. and Agriculture
Inc. For the entire year, companies raised a total P38.77 billion in
the stock market, a 23 percent improvement from 2008.
“We are enormously optimistic that we will see an improvement in listings and IPOs in 2010,” Lim added.