PSE fails to raise ₧200-B target for 2018

T HE Philippine Stock Exchange Inc. (PSE) fell short of its P200billion target fund-raising from the exchange this year, but officials said it still showed an increase of money raised despite the turbulent market.

PSE President and CEO Ramon S. Monzon said the exhange raised P187.84 billion this year, mainly from the big banks that needed to increase their respective capitalizations.

The funds raised this year, which Monzon said is P12 billion short of its target, is 12 percent higher than last year’s P167 billion in funds raised.

“We did not hit our P200-billion target. We are going to try hitting P200 billion next year,” Monzon told reporters.

The funds were raised despite jittery market conditions that peaked during the second half of the year, which saw the benchmark index, the 30-company PSEi, enter the bear market, a technical term used when an index drops at least 20 percent from its peak within a year.

The PSE also targetted to have eight initial public offerings (IPOs) this year, but only one materialized, DM Wenceslao and Associates Inc., which raised P8.15 billion.

Del Monte Philippines Inc. and Taiwanese firm Cal-Comp Technology (Philippines) Inc. both pulled out their respective IPO plans this year.

For next year, Monzon said they are still targeting P200-billion funds raised from the PSE, but that will be harder to achieve as banks have already raised their capital this year and there’s a new regulation that makes it easier for lenders to raise money through bonds.

“What are the challenges for next year? All the big banks have already raised capital from Metrobank, BPI, RCBC, and even worse now, bank bonds have been approved, so everybody goes to the bank bonds because the requirement there is very small,” he said.

Monzon is referring to the move of the Bangko Sentral ng Pilipinas to relax some of its rules to make it easier for lenders to float bonds without asking for Central Bank approval. BSP Governor Nestor A. Espenilla Jr. said they are treating lenders like any other nonfinancial corporate; thus, a bond can be issued by a bank following the bondissuance rules of the Securities and Exchange Commission.

Monzon said the PSE needs more IPOs for next year and new products to perk up the fund-raising market.

“Next year, it will depend on the market. If the market really is in the high 7,000 or 8,000, they may be encouraged to do their IPO,” he said.

He said Del Monte Philippines is still waiting for market conditions to improve for their IPO.

AirAsia, the airline company, is also among the firms waiting to list, but because of the closure of Boracay, it also suspended its plan.

Cal-Comp, the Taiwan firm, also expressed its interest to list next year.

Meanwhile, some of the backdoor listings include the Dennis Uy-led gambling venture PH Resort, which made its presentation with the PSE last week; the listing of Uy’s holding firm Udenna Corp.; and Tiger Resorts Asia Ltd., the operator of Okada Manila in Entertainment City.

“The backdoor listing is there. But we need more IPOs next year,” he said.