CEBU, Philippines - The Philippine Stock Exchange (PSE) has announced its official entry to Cebu market, with the opening of its satellite and marketing office next month at the Insular Building, Cebu Business Park (CBP).
According to Kathleen Therese B. Buenaobra, of the PSE market education department, the office has to be established as awareness of investing in the stock market in Cebu has significantly improved.
The Cebu office shall also serve as the tool to lure more investors to the stock market, not only within the province, but also in the Visayas and Mindanao markets.
She said this is also in line with the PSE’s thrust to increase the investors’ participation in the stock market, while only 1.5 percent of the total Filipino population is now investing on stocks.
Last year, PSE report showed that index hit record highs supported by positive economic fundamentals and optimism in national elections and new government.
By end of 2010, the PSE soured by 37.6 percent of 1,148.46 points to 4.201.14, and recorded a new index high of 4,397.30 points for year. Average daily turnover also surged by 20.5 percent to P5 billion in 2010 from P4.1 billion in 2009.
Buenaobra said that PSE hopes not only to attract Cebuano investors to the stock market by opening of its office here, but also entice companies to get listed.
At present, there are 249 companies listed in the stock market, only 140 of which are active, she said.
PSE president Val Antonio B. Suarez reported that the local investor base continued to buoy the stock market as domestic traders accounted for 61.9 percent of total trades in 2010.
Meanwhile, foreign investors were net buyers at P35.6 billion from P14.9 billion in 2009.
According to Suarez the strong growth in stock prices boosted domestic market capitalization by 72.7 percent to P6.9 trillion from P4 trillion in 2009.
Capital generated from the stock market improved dramatically in 2010 from the increase in initial public and stock rights offers.
“Amid this favorable backdrop, we return of the bulls to the stock market boosted PSE’s consolidated net income by 101 percent to P417.5 million from P207.7 million in 2009 due to more company listings and increased trading volume of stocks,” Suarez said.
In 2010, consolidated revenues spiked 50 percent to P938.0 million from P624.4 million in the same period of 2009.
Listing related income likewise surged by 99 percent to P401.9 million from P202.1 million in 2009.
Suarez added that the Exchange continues to dialogue with the government on enhancing and developing the country’s capital markets through reforms and other initiatives.
He mentioned the implementation of the Real Estate Investment Trust (REIT) Act, which is anticipated to usher REIT’s as fresh listings on the bourse.
The future implementation also of the Personal Equity and Retirement Act or PERA, is expected to increase individual savings and contribute to increased trading volumes on the Exchange. (FREEMAN)