PSE to launch new products

MANILA, Philippines - The Philippine Stock Exchange (PSE), which will be led by the same board of directors for the third straight year, is focusing on launching new investment products for the public.

The company managing the country’s only stock exchange hopes to complete its merger with the bond market operator this year, ahead of the PSE headquarters’ transfer to Taguig in 2016, executives said.

“The big challenge for PSE is to actually get us to a stage where we have more products traded in the exchange and continue increasing the public float and participation of issuers,” said PSE president and CEO Hans B. Sicat said in a briefing.

“To be specific, the goal post for us now will be how many products we can start adding on to the exchange,” Sicat said.

Specifically, the PSE is launching exchange-traded funds (ETF), the securities borrowing lending program for hedging purposes and online service bureau in the next 12 months as it upgrades its technology to allow new investment products.

The securities borrowing system is a building block for other products like stock market futures, Sicat said, adding that the main issue is finding organizations like like pension funds, retirement funds insurance companies that will lend stocks.

The local bourse’s initiatives this year aim to encourage more investments in the stock market and topple the record P219.08-billion worth of capital raised last year, Sicat said.

“Because the market has been so good, a lot of companies decided to raise funds,” Sicat said, adding that there will be large share sales this year.

In 2012, capital proceeds from private placement, stock rights offerings and follow-on offerings amounted hit P50.38 billion, P52.07 billion and P92.64 billion, respectively. Five companies conducted their initial public offering (IPO), raising a total of P23.99 billion from the market, while two listed firms listed by way of introduction.

Sicat said there will be more than seven listings this year following the P8.96-billion IPO of Rebisco Group’s Asia United Bank last week and the P3.2-billion share sale of thrift lender Philippine Business Bank of the Zest-O Group in February.

Meanwhile, stockholders of the PSE approved the transfer of its headquarters to the sprawling Bonifacio Global City (BGC) in Taguig by 2016.

The structure will be called the Philippine Stock Exchange at One Bonifacio High Street.

“We are contributing the value of our lot in BGC and we will be funding the rest. Our share of the total cost is P805.6 million,” Sicat said.

The PSE will sell its properties in Ayala Avenue and Tektite building in Ortigas Center to fund the construction of the new headquarters.

PSE chief operating officer Roel Refran said the 26-story building will offer 6,400 square meters of office space for the local bourse.

Local brokers will have the option to move into the new tower, which will be put up by property giant Ayala Land Inc., Refran said.

Ahead of the transfer, PSE is hoping to complete its merger with the Philippine Dealing and Exchange Corp. (PDEX) this year, Sicat said.

“We’d rather do it sooner rather than later,” Sicat said.

The Bangko Sentral ng Pilipinas earlier said it is supporting the proposed unification of the country’s stock and bond markets that could enhance liquidity in the financial market.