January 30, 2023

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PSEi closed at 6,500-point level on last day of trading

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THE benchmark Philippine Stock Exchange Inc. (PSEi) index closed barely unchanged at 6,566.39 points during the last trading day of the year last Thursday, down by mere 0.15 points from the previous day’s trade. Year to date, the main index decreased by almost 8 percent.

Daily average value turnover for the year was at P7.3 billion (about $130.756 million at current exchange rates), down by 19 percent from last year’s P9-billion average.

The market registered P67.95 billion-worth of net foreign selling versus the P2.75 billion net foreign selling in 2021.

For the year, total capital raised from primary and secondary shares amounted to P110.29 billion, more than half lower than the P234.48 billion raised in the previous year.

Despite the lower capital raised figure, the PSE had nine initial public offerings (IPOs) this year, the most number of IPOs in a single year since 2007. Other capital raising activities conducted this year included one listing by way of introduction, five stock rights offerings and 12 private placements in 2022.

Banner year

PSE President and CEO Mr. Ramon S. Monzon said they still consider 2022 “a banner year in terms of the number of IPOs and we look forward to continuing the listing momentum in 2023.”

“We see the equities market becoming a more attractive option for capital-raising given the rise in interest rates and as valuations gradually recover,” Monzon added.

He expressed optimism that the stock market can bounce back in 2023 as the global economy continues to open up and corporate earnings return to pre-pandemic growth levels.  “While risks from geopolitical tensions, higher inflation and increasing interest rates remain, the Philippines has shown its resiliency through better-than-expected GDP [gross domestic product] growth during the previous quarter, which we hope will carry over for the fourth quarter and in 2023,” Monzon said.

The PSE saw the listing of three new real estate investment trusts (REITs) this year, with two being energy-themed REITs.

“The local REIT market is still teeming with potential opportunities and we expect our REIT roster to expand and potentially diversify to include other themes beyond what we have listed so far,” Monzon said.

The bourse’s market capitalization registered an 8.4-percent decrease at P16.56 trillion from P18.08 trillion from the previous year.

Image credits: Philippine Stock Exchange