Companies raise record P234B capital in PSE

·2 min read

THE Philippine Stock Exchange Inc. (PSE) has registered a new record for capital raised in the stock market at P234.48 billion in 2021, breaking the previous high of P228.33 billion in 2012, on the back of the biggest initial public offering (IPO) in the history of the Exchange and REIT listings.

For 2021, the PSE had eight IPOs, 11 follow-on offerings, four stock rights offerings and eight private placements.

“We are pleased that more companies chose to raise funds through the PSE. Their confidence in the stock market made it possible for us to achieve this record capital raising number,” said PSE president and chief executive officer Ramon Monzon.

On the last trading day of 2021, the PSE index (PSEi) closed at 7,122.63 points, down by 211.93 points or 2.9 percent from the previous trading day’s close. Year to date, the PSEi dipped 0.2 percent. The All Shares index, on the other hand, shed 10.6 percent year to date, after it ended the year at 3,818.12 points.

Daily average value turnover for 2021 was at P9 billion, up by 22.5 percent from 2020’s P7.35 billion average.

Foreign investors were net sellers by P2.32 billion, narrower than last year’s P128.57 billion net foreign selling. They were also responsible for 36.1 percent of the trading value turnover, while the rest were accounted for by their local counterpart.

A surge in retail investor participation was also logged in 2021 at 31.1 percent, from 18.2 percent in 2019 and 26.9 percent in 2020.

“The active participation of local retail investors will likely continue (in 2022) especially as we expect the upcoming IPOs to attract new investors. While this is a much welcome development, we also hope to see the gradual return of foreign funds to the Philippine stock market,” Monzon added. (PR)

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