The Philippine Stock Exchange (PSE) is confident the equities market will have an encouraging year as far as fund-raising goes as the economy shows some improvement.
“We’ve hit P122 billion and with luck smiling on us, hopefully, we can approximate that high or we can exceed that high,” said Ramon Monzon, PSE president, referring to the funds raised so far, exceeding last year’s total of P103.76 billion.
Monzon said the PSE’s optimism in fund-raising activities is supported by the current financial market environment which makes it difficult for companies to tap into non-equity related financing. Banks, he said, have tightened their lending standards.
“Because of the economic difficulties, a lot of the companies had to borrow (but) were reaching their credit limits. But their need for capital continues so they have to go to the equities market,” Monzon said.
Monzon said the appreciation for the real estate investment trust (REIT) is also a big factor in attracting more fund-raising activities in the equities market.
“There are a number of companies now that need to raise capital to carry on the real estate investment projects,” Monzon said.
Among the pipeline REIT issuances are from Megaworld Corp., P27.3 billion; Robinsons Land Corp., P26.67 billion and; Filinvest Land Inc., P14.88 billion.
Other companies like Vista Land & Lifescapes Inc. and Citicore Power Inc. have expressed interest to issue their respective REITs but have yet to formally file an application.
The PSE last week said the first six months of the year saw daily value turnover average at P8.96 billion. Foreign funds were net sellers of P77.80 billion.
The PSE over the weekend welcomed to its board Gilberto Teodoro as independent director, and Tomas Alcantara as director representing other market participants.
Jose Pardo received an extension of his term as independent director and PSE chairman while the PSE kept the slot of Eusebio Tanco vacant even after the latter declined his nomination for a new term after his brokerage firm got embroiled in an anomaly in the stock market.
