New PSE board bares plans for year ahead

MANILA, Philippines - The Philippine stock market is looking at more recognition from international fund managers like higher weight from the Morgan Stanley Capital International (MSCI) index.

“We do back anything that is a higher weighting for the Philippines. It helps improve our profile,” Philippine Stock Exchange (PSE) president and chief executive officer Hans Sicat said, adding that it will generate more liquidity into selected stocks.

To date, local companies included in the MSCI basket of stocks include port operator International Container Terminal Services Inc., diversified conglomerate San Miguel Corp. and food and beverage maker Universal Robina Corp.

Meanwhile, the PSE will monitor the preliminary implementation of the Association of Southeast Asian Nations (ASEAN) Exchange Linkage before joining the group.

In an interview, Sicat said the PSE is looking at being the fourth or fifth member of the trading link, which might start operations in the third quarter with only two countries.

The cross-border trading plan involves Bursa Malaysia, Hanoi Stock Exchange, Hochiminh Stock Exchange, Indonesia Stock Exchange, Singapore Stock Exchange, Stock Exchange of Thailand and the PSE.

In November, the PSE said it is deferring its participation linkage, which aims to create a common trading venue initially among the region’s stock markets.

Sicat said there are still issues related to cross-border regulation, clearing and settlements.

The linkage was seen to speed up ASEAN integration by enhancing access and liquidity in capital markets across the region.

As part of its ongoing review of policies, the PSE is looking at prohibiting existing shareholders from selling stocks during an initial public offering (IPO) on the second board.

“The rules are being reviewed now as an offshoot of the Calata Corp. discussion,” PSE director Bautista said.

“It seemed a little peculiar that insiders were already trying to sell shares while trying to raise money from the public to grow their ventures.”

Bautista said the second board, which requires companies to have at least P100 million in authorized capital stock, is usually for firms to raise funds for expansion.

The PSE rejected the plan of Bulacan-based agricultural firm to sell P270 million of secondary shares on top of the P270 million worth of primary shares for its IPO.

The results of the review will come out in the next few weeks, Bautista said.

New PSE board bares plans for year ahead.