PSE income up 54% amid robust mart

MANILA, Philippines - Robust activity in the equity market allowed profits of the Philippine Stock Exchange (PSE) to surge last year.

The operator of the country’s only stock exchange said its net income climbed 53.7 percent to P624.17 million from P406.19 million in 2011.

“The favorable macro environment and several game-changing PSE initiatives we’ve managed to implement combined to kick-start and sustain the market’s stirring run,” said PSE president and CEO Hans B. Sicat.

PSE recorded a 27 percent growth in its operating revenues to P1.14 billion last year from P900.76 million in the previous year.

Total revenues, which include income from investments, spiked 30 percent to P1.31 billion.

“The increase was mainly attributed to the growth in listing-related and trading-related incomes, as well as service fees,” PSE said.

Listing-related income rose nearly a third to P562.04 million from the P429.29 million in 2011 due to the rise in capital-raising activities of listed companies.

Capital raised at the Philippine stock market reached a record amount of P219.07 billion in 2012, more than double the P107.50 billion a year ago.

Capital raising activities include initial public offerings, follow-on offerings, stock rights offerings, and private placements.

“Trading activity also experienced an upsurge as average daily turnover went up by 27.1 percent to P7.26 billion in 2012, providing a significant boost to trading-related revenues and fees,” PSE said.

Trading-related revenues and fees grew 20.3 percent to P243.96 million, with higher trading volume benefiting the service fees generated by the PSE subsidiary Securities Clearing Corp. of the Philippines. Its income hit P316.38 million, up 24.5 percent from P254.03 million in 2011.

Operating expenses grew at a slower pace, gaining 14.6 percent to P505.13 million largely due to increases in professional fees, manpower cost, and depreciation and maintenance costs of the newly installed trading system.

The benchmark PSE index, which recorded 38 all-time highs on its way to growing by 33 percent and closing at 5,812.83 last year, was the second best performing benchmark index in Asia, next only to the 36.3 percent climb of Thailand’s SET index.

“The PSE’s exceptional corporate performance is another reflection of investors’ vote of confidence in our market,” Sicat said.

“If the first few months of 2013 are any indication, we are optimistic that this growth momentum can be sustained going forward,” Sicat added.