PSEi marked a record high yearend in 2017 for the first time
The Philippine stock market attracted P56.21 billion in net foreign buying in 2017, a breakout year for local equities on the back of a benign global economic environment and a much-awaited local tax reform program that is seen to usher in a “golden age of infrastructure.”
The net foreign buying seen in the local stock market last year marked a dramatic improvement over the modest P2.8 billion inflows in 2016.
For the first time in two years, the Philippine Stock Exchange index (PSEi) closed higher in 2017 and likewise ended at a record high at yearend for the first time in history. The PSEi surged by 25.1 percent to end last year at a record 8,558.42.
“The stock market recorded a stellar growth in 2017, making our market one of the top performers in the region. With the passage of the first phase of the government’s tax reform package and the government’s projected infrastructure spending providing positive support for the market, its prospects for the year remain upbeat and bright,” PSE president and chief executive officer Ramon Monzon.
The PSEi also reached a new record intraday high in the last trading day of 2017 at 8,640.04.
Average daily value turnover for 2017 rose by 3.2 percent to P8.06 billion from P7.81 billion in 2016 while market capitalization in 2017 reached an all-time high of P17.58 trillion.
Total capital raised in the market last year amounted to P163.35 billion. Four new companies debuted on the stock market: Wilcon Depot Inc., Eagle Cement Corp., Cebu Landmasters Inc. and Chelsea Logistics Holding Corp. There were three follow-on offerings of dollar-denominated securities: two offerings by Del Monte Pacific Ltd. and one by Cirtek Holdings Philippines Corp.
After attempting to decisively conquer the 8,000 barrier for the last three years, PSEi was finally successful in 2017. The main index closed at new highs 14 times during the year, including that in the final trading session.
This yearend performance reversed the slump seen in the last two years. The PSEi fell by 1.6 percent in 2016 and lost 3.85 percent in 2015.
“We anticipate an exciting 2018 for the local market given the plans we have set for the exchange. We look forward to the launch of new products and services that should make our market more robust and attractive to both foreign and local investors. Finally, we hope to get the regulatory approval this month for the integration of the fixed income and equities market,” Monzon added.