PSE posts P15.6 B in net foreign buying

MANILA, Philippines—Foreign investors bought P15.6 billion more local stocks than they sold in the first nine months of the year despite the extremely volatile global markets, the Philippine Stock Exchange said Friday.

The net foreign buying in the local stock market for the nine-month period was 37 percent higher than the P11.37 billion in net foreign equity inflow in the same period last year.

Even as the main PSEi index headed lower than the end-2010 level at the end of the nine-month period, the combined market capitalization of listed issues on the PSE rose by 11 percent to P8.2 trillion compared with P7.39 trillion in the same period last year.

The benchmark PSEi declined by 4.8 percent or 201.49 points to end at 3,999.65 as of September 30 from last yearend. The index hit a record peak of 4,550 in early August but pulled back since then due to turbulent global financial markets.

“While it’s unfortunate that recent concerns over events in Europe and the US have stalled our momentum, we still remain optimistic that markets will bounce back sooner compared with the global financial crisis a few years ago.  The Philippine economy’s solid economic fundamentals should be key in helping us ride out the turbulence,” PSE president and chief executive officer Hans Sicat said in a press statement.

In terms of sectoral indices, the mining and oil index emerged as the best performer as it was the only sector index that recorded gains, climbing by 47.2 percent during the January to September period. All other indices declined.

The PSE also reported that total turnover for the nine-month period reached P1.05 trillion, 24.1 percent higher than the level registered in the same period last year. In the third quarter alone,  turnover amounted P384.52 billion, up by 16.6 percent from a year ago.

Total capital raised in the first nine months amounted to P64.54 billion, an improvement over the P59.10 billion raised in the first nine months of 2010. This was due largely to the initial public offering of Megawide Construction Corp. (MWIDE), the follow-on offering of preferred shares of San Miguel Pure Foods Co. Inc. (PF), stock rights offerings of SM Development Corp. (SMDC), Metropolitan Bank & Trust Co. (MBT), Robinsons Land Corp. (RLC) and private placements into Banco de Oro Unibank, Inc. (BDO), Metro Pacific Investments Corp. (MPI), San Miguel Corp. (SMC) and Marcventures Holdings Inc. (MARC).

The PSE also added Philex Petroleum Corp. to its roster of listed companies via a listing by way of introduction in September, bringing the total number of listed companies to 250.

“Though the market remains volatile, it hasn’t stopped us from continuing reforms in the capital market. These initiatives, I believe, have contributed to increased trading activity and interest in the PSE,” Sicat noted.