FMIC’s P3-B ETFs okayed

MANILA, Philippines - The Philippine Stock Exchange (PSE) has allowed First Metro Investment Corp. (FMIC), a member of the Metrobank group, to proceed with the issuance of P3 billion worth of exchange-traded funds (ETFs) next month.

FMIC president and CEO Roberto Juanchito Dispo told reporters yesterday that the PSE has approved their application Wednesday.

He said they would start with P3 billion, and then request to increase the issuance size to P10 billion.

“We’re anticipating it will be easily sold to the market given abundant liquidity,” he said.

According to Dispo, they expect heightened demand for this kind of product in the market.

“Current market conditions will be beneficial to us. The US government shutdown effectively signals to the market that QE (quantitative easing) tapering may not happen this year or may even be kicked out down the road probably mid-2014 that will provide positive impetus for emerging markets, equity markets in particular,” he said.

He said they have been receiving “very positive” response from the market so far. “We’ve been doing non-deal roadshows Cebu, Davao, Pampanga, Binondo, Makati and Manila.”