Capital Markets
From The Report: Philippines 2014
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The Philippine Stock Exchange had the second-best performance among Asian equity markets in 2013. It hit 38 all-time records during the year, broke 6000 for the first time in January 2013, 6500 in Feruary, and 7000 in April. The challenge is now to build on this strong foundation, further developing the systems, institutions, and regulations that will guarantee the market’s continued success going forward. Efforts to expand the investor base and the instruments on offer should support continued expansion.
This chapter contains interviews with Hans Sicat, President, Philippine Stock Exchange; and Eduardo Francisco, President, BDO Capital & Investment Corporation, and Co-Chair, Capital Market Development Council.
Articles from this Chapter
Time to trade: New regulations are making the markets safer
Trading tariffs: Commission structures and taxes on stock tradesOBGplus
While the markets in the Philippines have been doing well, a number of barriers to investment exist making local stocks and bonds potentially somewhat less attractive than those in other regional markets. One of the disincentives is the tax structure. Foreigners buying shares and bonds have to pay a high withholding tax. Even when they are entitled to a reduction due to treaties, it is not always easy to get a refund. HIGH RATES: According to the Asian Development Bank (ADB), the Bureau of…
OBG talks to Hans Sicat, President, Philippine Stock Exchange (PSE)OBGplus
Interview:Hans Sicat How would you describe the value propositions of new investment products the PSE hopes to launch into the local market? HANS SICAT: By late 2013, we expect to begin exchange rated funds (ETFs), which remain the largest and fastest-growing asset class globally. We are also working on launching the Personal Equity and Retirement Account enacted by Congress, where investors can have their contributions matched and a tax referral mechanism from the government will help them…
OBG talks to Hans Sicat, President, Philippine Stock Exchange (PSE)OBGplus
Interview:Hans Sicat How would you describe the value propositions of new investment products the PSE hopes to launch into the local market? HANS SICAT: By late 2013, we expect to begin exchange rated funds (ETFs), which remain the largest and fastest-growing asset class globally. We are also working on launching the Personal Equity and Retirement Account enacted by Congress, where investors can have their contributions matched and a tax referral mechanism from the government will help them…
OBG talks to Eduardo Francisco, President, BDO Capital & Investment Corporation, and Co-Chair, Capital Market Development CouncilOBGplus
Interview:Eduardo Francisco What trends do you see in the initial public offering (IPO) segment over the next few years? EDUARDO FRANCISCO: While other countries have 10 to 20 IPOs per year, four to five has been the norm in the Philippines. We want more corporates to debut in the capital markets and establish their name and presence. Listing allows them to bring in new investors and also gives the latter more investment options. The significant capital-raising method in the past year has…
Aboitiz Power: EnergyOBGplus
THE COMPANY: Incorporated in 1998, Aboitiz Power (AP) operates as the power unit of the Aboitiz Group. AP, as a publicly listed firm, is considered to be one of the leading local players in the power industry, with interests in various privately owned power generation companies and distribution utilities throughout the country. AP’s power generation business accounts for the majority of the company’s earnings, producing 85% of its total income during the first half of 2013. In 2012 the company had an attributable capacity of 2353 MW, accounting for about 14% of total installed capacity in the country. FIRST-HALF 2013: Net income…
Ayala Land: Real estateOBGplus
THE COMPANY: Ayala Land, Incorporated (ALI) is the real estate arm of Ayala Corporation, one of the Philippines’ biggest and oldest business conglomerates. With over eight decades of experience in real estate, ALI has earned a reputation as the country’s premier real estate developer. Its projects include the following: development of residential subdivisions and condominiums; construction of high-rise commercial and office buildings; conversion of vast tracks of land into industrial business parks; and development and management of shopping centres, hotels, leisure resorts and entertainment operations. As of the end of 2012, the company…
DMCI Holdings: Construction and powerOBGplus
THE COMPANY: DMCI Holdings (DMC) was incorporated in 1995 as a holding company to consolidate the businesses of the Consunji family. The company operates in a number of sectors including construction, real estate, water services, mining (primarily coal and nickel) and power generation. In just the first few years after incorporation, the company has expanded its business organisation to include four major subsidiaries. These include: D.M. Consunji, Inc. (DMCI); DMCI Project Developers; Atlantic Gulf and Pacific Company of Manila; and Semirara Mining. DIVERSE PORTFOLIO: DMC’s earnings from its real estate, construction and power businesses…
Megaworld: Real estateOBGplus
THE COMPANY: Megaworld (MEG) is one of the country’s leading residential condominium developers and business process outsourcing (BPO) office space providers. Indeed, the company pioneered the development of mega-communities – integrated townships that locate residences, workplaces and commercial centres in one setting – with its flagship project, Eastwood City. This development is Megaworld’s first-ever integrated township project. The company’s real estate portfolio includes residential condominiums, townhouses, subdivision lots, office buildings, commercial and hotel facilities. Its subsidiaries include Megaworld Land, Empire…
Philippine Long Distance Telephone: TelecommunicationsOBGplus
THE COMPANY: Philippine Long Distance and Telephone (PLDT) was founded in 1928, and currently stands as the leading telecommunications provider in the Philippines. Through its three principal business groups – fixed line, wireless, and information and communications technology (ICT), PLDT offers the largest and most diversified range of telecommunications services across the country’s most extensive fibre optic backbone and fixed-line, cellular and satellite networks. PLDT is listed on the Philippine Stock Exchange and its American depository shares are listed on the New York Stock Exchange. Indeed, PLDT has one of the largest market…
Universal Robina: Food & beveragesOBGplus
THE COMPANY: Universal Robina (URC) is a core subsidiary of JG Summit Holdings. The company is one of the largest branded food product companies in the Philippines, and it has a growing presence in other Asian markets. URC is involved in a wide range of food-related businesses, including the manufacture and distribution of branded consumer foods; production of pigs and day-old chicks; manufacture and distribution of branded and unbranded animal and fish feeds; glucose and veterinary compounds; flour milling; and sugar milling and refining. The company is a dominant player with leading market shares in savoury snacks, candies and chocolates,…
