THE PHILIPPINE Stock Exchange posted a 13.9 percent year-on-year drop in first-quarter net profit to P164.73 million due to lower trading-related income and service fees for the period.
The local bourse reported an 18.27 percent decline in operating revenues to P262.07 million and a 36.55 percent drop in service fees. These declines were due to a 36.55 percent fall in total turnover value for the quarter of P407.07 billion from P641.59 billion in 2016.
Average daily turnover at the stock market eased to P6.78 billion in the quarter from P10.87 billion in the previous quarter.
“Global equities experienced volatility in the first quarter, and for emerging markets like the Philippines, it meant lesser foreign fund inflows. Locally, the pendency of the national elections kept some investors and potential issuers at bay,” PSE president Hans Sicat said on Monday.
The decline in net income was mitigated by controlled expenses as well as the increase in PSE’s other income source. Total expenses were reduced by 9 percent year-on-year to P131.18 million.
“Trading activity has been picking up following the conduct of what many investors deem as peaceful and credible elections. We are also anticipating listing activities that were initially put on hold to proceed by the second half of the year,” Sicat added