MANILA, Philippines—The Metrobank group’s equities arm, First Metro Securities Brokerage Corp., has inked a research partnership deal with DBS Vickers Securities Pte Ltd, a leading securities and derivatives brokerage firm in Singapore, in what is seen as an initial step towards greater collaboration in cross-border trading.
“This is in line with First Metro’s thrust towards regionalization. The collaboration opens the door to other exciting projects, including First Metro’s planned investment in regional equities markets. It will also facilitate cross-border trades between Philippine equities market and regional markets currently being serviced by DBS Vickers Securities,” Roberto Juanchito Dispo, FirstMetroSec chair and First Metro Investment Corp. president, said in a press statement.
FirstMetroSec president Gonzalo Ordoñez said this research collaboration with DBSVickers was just the first step. “There was some discussion on the potential for IPO (initial public offering) and fixed income distribution, ETFs (exchange traded funds) and mutual funds. There will be more mutually beneficial opportunities between DBSVickers and the First Metro Group moving forward,” he said.
The collaboration aims to offer best-in-class equity research to local and foreign investors and provide clients with actionable investment ideas in the Philippines, through the consolidation of information coming from FirstMetroSec and DBSVickers researches.
The partnership includes bringing foreign funds in to visit Philippine companies, taking Philippine companies on regional roadshows, and participating in each other’s investment forums.
DBSVickers managing director and head of research Timothy Wong Kok Chee said that the success of this research collaboration rests on the continued solid growth of the Philippine economy and its capital markets. “The combination of sound fiscal management, favorable demographics and an emerging domestic demand base suggests that the best is yet to be for the Philippine economy,” he said.
He also cited the solid foundation of First Metro Investment as a leading investment bank in the Philippines, adding that DBSVickers could not have chosen a better partner for its re-entry into the Philippines equity markets. “First Metro is poised to leverage this strong brand and franchise to benefit from this growth,” said Wong.
DBSVickers has committed to working closely with FirstMetroSec to make this collaboration work. He explained that over the past decade, DBSVickers has steadily built up a reputation in the institutional equities space in the region. He mentioned that in Singapore, it had been able to achieve a top three position in the Asiamoney poll in a span of five years, and had held this position since 2006.
A wholly-owned subsidiary of regional banking giant DBS Bank, DBS Vickers is an equities and derivatives house with a rich Asian heritage and strong Asian focus.
Founded in 1972, FMIC is a leading investment bank in the country with over 39 years of service in the development of the Philippine capital markets. With assets of P79 billion and a market capitalization of P21.9 billion as of end 2011, it is the largest investment bank in the country today.