Exchange posts 35.7% drop in H1 net profit

THE PHILIPPINE Stock Exchange saw a 35.7-percent decline in its six-month net profit to P366.84 million as listing-related revenues dwindled from previous year level, reflective of a more cautious market.

First semester revenue also fell by 28.4 percent year-on-year to P651.54 million, the local stock exchange reported.

An increase in total value turnover for the period boosted trading-related revenue while service fees generated by Securities Clearing Corp. of the Philippines (SCCP), a wholly owned subsidiary of the PSE, also expanded in the first half. However, listing-related revenue declined at a faster pace.

Listing-related revenue tumbled by 56 percent year-on-year as listing fees went down to P134.12 million. While capital raising activities were up by 36.4 percent this year, compared to the first semester of 2014, the volume of other listing activities fell short of the previous year’s number. From January to June this year, only one company conducted an initial public offering—Crown Asia Chemicals Corp. There were 18 other transactions consisting of follow-on stock rights offerings and private placements.

First semester trading-related revenue was up by 13.4 percent year-on-year to P164.28 million. The growth was driven by the expansion in total turnover value to P1.2 trillion in the first half from P993.01 billion in the same period last year.

In the meantime, service fees from SCCP rose by 20.4 percent year-on-year to P213.42 million in the first half.

“Despite the volatility in the market especially in the second quarter, the market managed to sustain healthy levels of liquidity. We did not see, however, the same transaction sizes as we did last year and this has adversely affected the company’s profit levels,” PSE president Hans Sicat said.

“We are hopeful of the pipeline for capital raising during the second half but more importantly, we need to remain steadfast in ensuring we complete other projects we have lined up for the year to support sustained growth for the company. For one, we continue to work for the completion of the integration of the equities and fixed-income exchanges that will pave the way for a more viable landscape for the Philippine capital markets,” Sicat said.