PSE index grows 42% last year, second fastest in AsPac region

The Philippine Stock Exchange (PSE) posted the second fastest growth among neighboring exchanges last year with its main index growing by 42.3 percent, according to preliminary results of a PSE study.

The PSE study is based on the indices of selected exchanges in Asia at the end of 2006, as well as their market capitalization and turnover as of November 2006. The ranking excluded the two stock exchanges in China, which are enjoying phenomenal growth and are leading in almost all aspects of the race among Asian bourses.

The PSEi posted the second fastest growth in terms of domestic market capitalization at 58 percent, while it recorded the third most rapid hike in value turnover with a growth of 49.1 percent.

"If it were a car race, I’d say that the PSE earned last year a slot on top of the winners’ podium. The podium performance means that our investors on average made money faster than their counterparts in most Asian countries," said PSE president and chief executive officer Francis Lim.

The Jakarta Stock Exchange (JSX) still recorded the fastest growth in the index (55.3 percent) and in domestic market capitalization (70.3). In terms of value turnover, the Singapore Stock Exchange (SGX) recorded the highest growth at 51.3 percent.

According to the PSE, the 42.3-percent rise in the PSEi, which is the main barometer of local stock price movements, was better than its counterparts in the Hong Kong Exchanges and Clearing (up by 32.2 percent), SGX (27.2 percent), Bursa Malaysia (21.8 percent), Taiwan Stock Exchange Corp. (19.5 percent), Korea Exchange (four percent) and Tokyo Stock Exchange (1.9 percent).

In terms of value turnover, the PSE trailed that of HKEx (73.3 percent) and the SGX (51.3 percent).

Lim noted that in absolute numbers, the value turnover, market capitalization and offering proceeds of the PSE were way below those in other Asian countries.

"We should take the small size of our market as a challenge to work harder so we can catch up with our neighbors. We can also view the gap separating us from those ahead of us as our room for potential growth in our market," Lim said.

"If we can keep the same favorable factors that attracted the offerings last year, we might enjoy more offerings this year. And if we can sustain a favorable investment environment for several more years, we will soon find ourselves abreast with — if not ahead of — our neighbors," Lim added.