The Philippine Stock Exchange said Friday net income fell 21 percent in 2015 to P683 million from a year ago, as volatilities in the global equities market tempered capital raising activities.
The PSE said in a statement total revenues in 2016, including operating revenues and other income, declined 15 percent year-on-year to P1.4 billion.
Listing-related income, which accounted for 40 percent of operating revenues, dropped 41 percent year-on-year to P483 million.
“Last year was a challenging year not only for the Philippine stock market but to the global equities market in general. Our local market was not spared from the backlash of China’s economic slowdown and the US Federal Reserve’s decision to start gradually raising interest rates. These developments affected both liquidity and capital market deals particularly in the latter part of the year,” PSE president and chief executive Hans Sicat said.
Sicat said he expected capital raising activities to pick up this year, after the Philippine elections.
“Volatility has persisted early in 2016 but we are hopeful that the country’s sound economic fundamentals will help temper these and will cause investors to continue having the Philippines in their investment radar,” Sicat said.
“We hope the volatility becomes more tempered as investors get more clarity on the impact of the global developments in our market,” Sicat said.
Data showed that while capital-raising activities increased in 2015, other listing activities arising from other market deals were slower compared to 2014.
The average daily turnover in 2015 increased 2 percent to P8.9 billion from P8.8 billion in 2014, despite volatilities in the second half.
Daily average turnover in 2016 went down by 31 percent to P6.2 billion as of Feb. 23, from P8.96 billion a year ago.
PSE said total expenses rose 2 percent to P602 million in 2015, as the exchange invested in new trading system.
The construction of PSE’s new office building in Fort Bonifacio Global City also contributed to the increased spending, it said.
The PSE is scheduled to transfer to its new office in the first half of 2017.
“A big part of the spending increase was due to investments that are being made by the company in line with its strategy of creating a bigger exchange offering more products and services. Despite these, we were able to manage our expenses to help mitigate the impact of slower market activity in our financials,” Sicat said.
