Stock market capital raising activities more than double in 1H 2014

The Philippine Stock Exchange (PSE) reported an increase in capital raising activities of 147.2 percent from January to June 2014 compared to the same period last year. Capital raised by companies listed on the Exchange through initial and follow-on public offerings, stock rights offerings and private placements, amounted to Php76.12 billion from P30.80 billion in 2013. DoubleDragon Properties Corp. and Century Pacific Food, Inc. conducted initial public offerings, while 8990 Holdings, Inc. had its follow-on offering. Bank of the Philippine Islands, Philippine National Bank, China Banking Corporation and Manila Mining Corporation raised additional capital through stock rights offerings, while 10 other companies had private placements.

Meanwhile, the PSEi rose 16.2 percent during the first six months of the year and ended the period at 6,844.31 points. This growth was the fastest in the region next only to the main indices in India but besting the performance of the main indices in the ASEAN and East Asian markets.

“We are again poised for another banner year based on various growth metrics.  We started the year slow as we saw some fund rotation out of the country at the beginning of the year but we have since picked up the pace as shown in the rise in net foreign inflows all the way to the end of June,” PSE President and CEO Hans B. Sicat said.

Net foreign buying came in at Php45.67 billion during the first half of the year, 14.4 percent lower than the same period last year but almost triple the figure registered for the entire 2013.  Meanwhile, total market capitalization at the end of June stood at Php13.35 trillion, up 11.9 percent from the Php11.93 trillion-figure at the end of 2013 and 14 percent higher from Php11.71 trillion registered at the end of June 2013.

Total value turnover for the first six months stood at Php993.01 billion, 29.3 percent lower than the Php1.4 trillion registered in the same period a year ago. Average daily value turnover also declined by 29.3 percent year-on-year to Php8.14 billion.

“On a run rate, we may be behind our target for capital raising but we remain optimistic that we can meet the Php200 billion mark for the year. We have also seen an increase month-on-month in our liquidity levels.  If this pace continues, we think we can get to at least our average trading levels of last year,” Mr. Sicat added.

Like the main index, all sectoral indices also ended higher in the first half with the Mining & Oil index emerging as the best performer after rising by 38.8 percent to the 16,541.46 level. This was followed by the Industrial index which increased by 19.0 percent to 10,345.23. The Property index grew by 18.2 percent to the 2,607.60 level. This was trailed by the Holding Firms index which climbed by 15.0 percent to 6,243.17. The Financials index rose 14.3 percent to 1,631.47. Finally, the Services index saw a 10.0 percent gain to 2,051.79.