Coyiuto tops PSE elections

For the second straight year, veteran stockbroker Robert Coyiuto Jr. garnered the most number of votes in the annual elections for the 15-man board of the Philippine Stock Exchange (PSE).

The PSE had its general membership meeting and elections yesterday, which was described as the "most peaceful" since the unification of the Makati and Manila Stock Exchanges in 1994.

Coyiuto was the first president and chairman of the unified exchange and has since served in the board of directors in various capacities.

Aside from Coyiuto of R. Coyiuto Securities, other brokers who retained their seats in the PSE board are Vivian Yuchengco of The First Resources Management Corp., William Ang of Astra Securities, Francisco Villaroman of Securities Specialists Inc., and Alejandro Yu of R.S. Lim & Co.

Completing the brokers’ list in the board are Eddie Gobing of Lucky Securities and Joseph Roxas of Eagle Equities, both former PSE directors themselves.

Under the Securities Regulation Code (SRC), only seven of the 15 seats are reserved for brokers while majority or eight of the board slots are for non-broker directors.

As expected, retired Supreme Court Justice Jose Vitug and lawyer Francis Lim both retained the chairmanship and presidency, respectively, of the local bourse.

The other non-broker directors who remained on the board of the PSE are Cornelio Peralta (independent director), Jose Luis Javier (independent director), Anabelle Chua of telecommunications giant Philippine Long Distance Telephone Co. (representing listed companies), and Roberto Atendido of the ATR Kim-Eng Group (representing the interests of market participants).

The new entrants to the board, on the other hand, are Amor Iliscupidez of food and beverage giant San Miguel Corp. and Roy Joseph Rafols of state-run pension fund Government Service Insurance System (GSIS).

Vitug said he is very honored for his re-election and vowed to pursue capital market reforms to attract more investors, professionalize the exchange, and bring it to world-class standards.

"I will continue what I have started last year. There are new programs that the exchange wants to introduce and accomplish this year," Vitug said.

Lim, for his part, said the peaceful elections should prove that the exchange is now in order and one in its vision of becoming a premier exchange in the region.

"We are a family and like good family members we all must share the responsibility to maintain and build our household. We will build a better exchange ideal for new listings, more transactions and more business," Lim said.

"The exchange will do equally as well this year. We’ve done a good job in putting out fires but as we look forward there are other challenges we have to contend with," Lim added.

Among the potential problems seen to hinder the growth of the equities market are the twin bills filed in Congress seeking to prohibit state pension funds Government Service Insurance System and Social Security System from investing in the stock market.

"We are moving heaven and earth to get foreign pension funds like CalPERS to invest in our stock market. If these two bills become laws, fund managers and foreign pension funds might use it as the very basis to junk our market. The bill also denies ordinary workers whether from the government or the private sector an opportunity to earn extra for their pension fund contributions," Lim said.

Lim also considers the Securities and Exchange Commission (SEC) directive ordering the exchange to comply with the 20-percent single industry limit for ownership in the exchange, a big challenge. The exchange was given until July this year to comply with the directive.

He said the exchange is now in talks with three groups of investors for possible sale of PSE shares held by brokers.

Lim also said the exchange is in the process of acquiring a new trading system to replace its almost 15-year old terminal to minimize trading glitches and allow the PSE to launch new products and services.

The exchange needs $4 million to acquire a new trading system.

Aside from this, Lim said the exchange will vigorously study a plan to house the Ayala and Tektite bourses under one roof. "We are the product of the marriage between the Manila and Makati Stock Exchanges. But we still live in two different households.Your management wants this changed. We want this renewal of vows – this second wedding - solemnized sooner than later," Lim said.