PSE in the black due to 17.9 percent growth in first semester net profit

MANILA, Philippines — The Philippine Stock Exchange expanded its net profit by 17.9 percent to P174.79 million in the first semester from a year ago on higher service, listing- and trading-related fees collected during the period.

In a disclosure on Monday, the PSE said its operating income had gone up by 21.7 percent to P426.59 million as improved appetite on stock market trading translated to higher listing and trading fees.

In particular, listing-related income went up by 31.35 percent on the back of initial public offering (IPO), stock rights offerings and follow-on offerings that resulted in the listing of additional shares.  Trading fees were higher by 22 percent because of a more robust trading appetite during the period.

Service fees generated by the PSE’s wholly owned Securities Clearing Corp. of the Philippines (SCCP) were also higher.

Listing fees accounted for 41.77 percent of total revenues while trading-related fees and SCCP fees accounted for 22.5 percent and 27.7 percent, respectively.

“Other” income was less by 20.69 percent due to foregone revenues from the reprinting of various reports now available online under the new trading system.

Total value turnover at the stock market for the first half reached P661.81 bilion, 28.9 percent higher than a year ago.  About P5.25 billion worth of stocks changed hands daily in the first semester compared to P4.24 billion daily in the same period last year.

On the other hand, total capital raised from the local equities market amounted to P62.59 billion for the six-month period, which increased from the P38.98 billion raised in the first half of last year. This was due largely to the initial public offering of Megawide Construction Corp., follow-on offerings of San Miguel Pure Foods Co. and San Miguel Corp., stock rights offerings of SM Development Corp., Metropolitan Bank & Trust Co., & Robinsons Land Corp., and private placement of Banco de Oro Unibank, Inc.

The country’s main share index PSEi advanced by 2.14 percent or 90.07 points to end at 4291.21 in the first six months.

Meanwhile, the PSE’s operating expenses for the six-month period were 23.6 percent higher at P200.62 million.  While compensation and other staff-related expenses which comprised 37.3 percent of spending were almost flat, more expenses were booked from depreciation and repairs and maintenance.

The PSE also paid higher fees relating to consultancy contracts for the proposed construction of the PSE’s new headquarters in Fort Bonifacio, study of exchange traded fund (ETF) project and other strategic investments and market-enhancing expenses.

Total resources stood at P2.1 billion for the period, up by 4.7 percent from a year ago.  At the end of June, the PSE had a cash reserve of P601.6 million.