Capital Markets
From The Report: Philippines 2019
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One of the oldest stock exchanges in Asia, the Philippine Stock Exchange (PSE) is delivering robust returns. In the decade leading up to 2018 there were more years of gains than losses, with the 2009-14 period showing six consecutive years of expansion. Reinforcing the underlying trend, during the first few months of 2019 the PSE index began a slow and steady climb, up from 7466.02 points at the end of 2018 to 7859.78 points near the end of August 2019. The period ahead should see more listings on the Philippine Dealing and Exchange as the public infrastructure drive gathers pace, giving investors a comparatively less volatile means of investment in the Philippines’ capital markets. This chapter also contains interviews with Ramon S Monzon, President and CEO, Philippine Stock Exchange; and Lynette Ortiz, CEO, Standard Chartered Bank Philippines.

Articles from this Chapter

Overview

On the up: New listings and popular real estate offerings build momentum
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One of the oldest stock exchanges in Asia, the Philippine Stock Exchange (PSE) is delivering robust returns. Indeed, the PSE index (PSEi) ended 2017 on an all-time high – up 25.1% year-on-year (y-o-y) – and broke an intra-day record on the year’s last trading day, reaching 8640.04 points. These gains proved difficult to sustain in 2018, with the PSEi sliding throughout the year and ending in the red, mirroring turbulence in international capital markets. Nevertheless, the 12.8% y-o-y loss…

Interview

Raising the bar: Ramon S Monzon, President and CEO, Philippine Stock Exchange (PSE), on diversifying to boost regional competitiveness
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Interview:Ramon S Monzon How do you assess the market’s appetite for initial public offerings (IPOs) on the PSE? RAMON S MONZON: Although IPOs remain a viable option for firms and investors, most companies are finding that it is cheaper to raise capital from the debt market than from the equity market due to the prevailing low-interest environment. In May 2019 the central bank, Bangko Sentral ng Pilipinas, reduced interest rates by 25 basis points. That same month it cut the reserve requirement…

Analysis

Positive steps: The stock exchange has introduced initiatives to promote sustainable business practices
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With less than 1% of the population invested in equities in 2019, the Philippine Stock Exchange (PSE) has made financial literacy its main corporate social responsibility. As a regulator, the PSE has advocated the adoption of environmental, social and governance (ESG) as a standard for evaluating sustainable business practices. It showcases listed companies with ESG initiatives and extends support to those that are just starting on their ESG journey. As a listed company itself, the PSE has introduced…

Analysis

Regulatory revamp: New rules and initiatives ensure the stock exchange continues to meet changing investor needs
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Within the global financial market, the Philippine Stock Exchange (PSE) has recognised the importance of evolving and adapting to the changing needs of investors. At the same time, it is also important that the PSE understands when operational and structural improvements are needed. To this end, the exchange has introduced a series of regulatory reforms to ensure it continues to deliver high-quality services that meet international standards. Technology & Innovation Technological advancements…

Interview

Bonded together: Lynette Ortiz, CEO, Standard Chartered Bank Philippines, on utilising capital markets to finance infrastructure projects
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Interview:Lynette Ortiz In what ways can the Philippines increase foreign direct investment (FDI) inflows? LYNETTE ORTIZ: FDI inflows to the Philippines are expanding and the government is working to make the country even more attractive as an investment destination. Its focus on improving infrastructure – including the Build, Build, Build programme – is key. Given the importance of logistics, telecommunications, roads and bridges in a country with more than 7000 islands, improving accessibility…