Capital raised in Q1 at P41.63B

Capital raised at The Philippine Stock Exchange, Inc. (PSE) for both primary and secondary offer shares in the first quarter of 2021 was at Php41.63 billion, up from Php19.24 billion in the same period a year ago. Capital raising activities for the first three months of the year include one initial public offering (IPO), one follow-on offering, two stock rights offerings, and two private placements.

“The approval of our amended listing rules should help accelerate IPO listings at the Exchange, especially in the SME Board with the relaxed requirements and the adoption of a sponsor model for listing,” said PSE President and CEO Ramon S. Monzon. “When approved, our proposed rules on Preferred Shares only listing and proposed revisions to the backdoor listing rules should also encourage more listings at the PSE.”

Average daily value turnover was up by 64.6 percent year-on-year to Php10.99 billion, from Php6.68 billion in the first three months of 2020.  Foreign investors continued to exit our market as net foreign selling for this quarter reached P47.91 billion, a 55.1 percent increase from Php30.89 billion in the same period last year. 

“Despite the increase in net foreign selling our market experienced record turnover for the first quarter as local investors increased their share in the trading volume to 74.3 percent from last year’s 54.6 percent. Another noteworthy development was the increase in the participation of retail investors. Preliminary information shows that retail investors may have accounted for over 45 percent of turnover for the quarter from 26.9 percent in 2020,” Mr. Monzon added. 

The PSEi ended the first quarter at 6,443.09, resulting in a 9.8 percent decline year-to-date. The All Shares index also finished lower in the first three months, down by 8.2 percent year-to-date.

“Uncertainty about the pace of the country’s vaccination program which in turn affects the prospects of the country’s economic recovery has discouraged foreign investors from investing in the Philippine market.  But we expect that once a good percentage of the population has been vaccinated, these investors will soon regain confidence in our economy,” Mr. Monzon explained.

In April, the PSE will host two IPO-related online forums. It will also continue to hold investment literacy webinars.