PSE earns modest profit from transaction fees

The Philippine Stock Exchange (PSE) reported a 179.3-percent growth in its net income during the first half of the year, helped by the reimposition of stock transaction fees early this year.

In its financial report, the PSE said profits amounted to P11.08 million compared with P3.96 million last year.

Operating revenues rose 9.38 percent to P61.18 million due to higher membership-related income amounting to P16.02 million or an increase of 352 percent from the previous year’s level.

PSE gained P7.91 million from the collection of stock transaction fees and P3.22 million from higher subscriptions to Maktrade – its computer trading system – as it reverted to the original practice of giving relief to only one terminal per trading participant.

Data feed connections of P8.18 million or 13 percent of total revenues registered an increase of P2.81 million due to accrual recognition of income per month as against cash basis recognition.

For the listing-related income, listing fees amounted to P33.78 million, down by 24 percent due to fewer application of additional listing fees as well as processing fees.

Only one company – PetroEnergy Resources Corp. – has so far listed this year as investors opted to stay on the sidelines until after the May national elections.

Non-operating income amounted to P37.06 million, 76.64 percent higher than the same period last year as a result of a more organized investment mix that took advantage of optimum yields and increase in funds due to private placements received from institutional investors for a total amount of P705.16 million.

Short-term investments amounted to P247.99 million, 16.32 percent of total resources or higher by 237.7 percent from the same period a year ago.

Long-term investments, on the other hand, grew to P675.62 million as additional investments were made in foreign exchange-traded notes, promissory notes and US dollar-denominated Philippine bonds.

The PSE said it will initiate a proactive approach to enhance trust and confidence in the market, to sustain the interest of the public to invest, and to encourage companies to list.

The exchange also intends to strengthen its capability to supervise and enforce good practices among the trading participants through an automated surveillance system which will be established. The system will effectively monitor trading activities, detect manipulative attempts, and provide safeguards against possible abuses.

The PSE will likewise adopt an improved audit program that can effectively assess risks in brokerage operations and promptly detect improper practices, thereby minimizing, if not prevent, failed trades of trading participants and lower exposure risks of investors.