FMIC raises First Metro ETF capital to P10B

First Metro Investments Corp. is increasing its soon-to-launched exchange traded funds or ETFs to P10 billion from P3 billion, saying demand is going to be higher from local and foreign investors.

 

The company intends to seek Securities and Exchange Commission approval to raise the authorized capital stock of First Metro Exchange Traded Fund to P10 billion, Roberto Juanchito Dispo, First Metro Investments president, said Thursday. 

 

First Metro ETF will be launched in November, and Dispo said they expect P3 billion to be fully subscribed early next year.

 

Mirror indexes, commodities, bonds and currencies, ETFs are exchange-listed products investors buy and sell like stocks, the difference being that ETFs give investors the flexibility to diversify portfolios by placing their money in a single product that encompasses a wide range of securities with the weight of a representative index.

 

The Philippine Stock Exchange on Wednesday approved the listing of First Metro ETF, Dispo noted, saying the SEC will likely make a decision on its application this week.

 

Current market conditions are favorable to emerging markets, including Philippines, with the likelihood of the US Federal Reserve delaying the withdrawal of its $85-billion monthly bond-buying 

program quite high because of the economic and financial woes now facing the US, Dispo said.

 

First Metro Investments is banking on the planned initial public offerings of Travellers International Holdings Inc., Robinsons Retail Holdings Inc., Concepcion Industries Inc. and Harbor Star

Shipping Inc. to catch the eye of investors who are likely to take a closer look at ETFs as a viable alternative to selected stocks. – VS, GMA News