2012 Capital of Philippine Stock Market

By Priam F. Nepomuceno

The Philippine stock market raised P107.50 billion in capital in 2011, the highest so far raised in a single year.

The figure is 26.6 percent higher than the amount raised last year and surpassed by 19.3 percent the previous record posted in 2007.

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

“We are glad to report that despite the uncertainties in the global market that hounded us throughout the year, your local stock market has closed 2011 with yet another set of significant milestones,” Philippine Stock Exchange (PSE) president and chief executive Hans B. Sicat said.

Meanwhile, the PSE index ended the year on a positive note, advancing by 35.33 points or 0.8 percent on Dec. 29 to close at 4,371.96.

The benchmark index’s finish for 2011 was 170.82 points, or 4.1 percent, more from its previous close of 4,201.14 in 2010.

A total of five companies conducted their maiden listing in 2011 – Megawide Construction Corp., Puregold Price Club, Inc., Cirtek Holdings Philippines Corp., Calapan Ventures, Inc. and Touch Solutions, Inc. – raising a total of P9.04 billion from the market.

Meanwhile, capital proceeds from private placement, stock rights offerings and follow-on offerings amounted to P42.85 billion, P40.61 billion and P15 billion, respectively.

Total value turnover for 2011 posted a new record high as it reached P1.42 trillion, 17.8 percent more than the P1.21 billion registered in 2010.

The PSE extended its trading hours to 1 p.m. in October this year as part of its efforts to increase liquidity in the market.

On Jan. 2, 2012, trading hours will be further extended up to 3:30 pm.

The combined market capitalization of listed issues in the PSE at yearend came in at P8.7 trillion, supported by the 5.0 percent improvement in domestic market capitalization, which finished the year at its highest ever recorded level of P7.24 trillion.

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