THE Philippine Stock Exchange Inc. (PSE), the operator of the country’s equity market, said its net income for the first half of the year rose by more than a third to P341.72 million, from P253.64 million last year, despite the absence of any initial public offering (IPO) for the year.
The PSE traced the increase to the surge in the company’s other income, which rose sevenfold to P176.29 million due to higher interest income and fair value of equity investments.
For the January-to-June period, PSE’s operating revenues were down by 13 percent to P605.24 million, from last year’s P699.58 million on lower trading-related fees and listing-related fees.
“Several factors prompted issuers and investors to shy away from the stock market and this had a negative impact on our main revenue sources. Capital raising may still be challenging given the rate cuts and the reduction in banks’ reserve requirements, but we are optimistic that several companies are still keen on raising funds through the equities market,” PSE President and CEO Ramon S. Monzon said.
“While value turnover is still marginally higher year to date, we may see market activity tempered by ongoing geopolitical concerns. We hope that these issues will be resolved soon so investors find their way back to the stock market,” Monzon added. Total expenses were down by 6.1 percent to P364.50 million, the PSE said.
In August, the PSE had the pilot run for the local small investor subscription platform for IPO. The PSE has also submitted to the Securities and Exchange Commission (SEC) the comments of its stakeholders on the proposed amendments to the PSE Listing Rules for Real Estate Investment Trust. “Work continues on several projects, including initiatives with partner exchanges. The PSE remains committed to introducing products and services that will help make our stock market more competitive in the region,” Monzon said.