PHL's first exchange traded fund climbs on market debut

The Philippines's first ever domestic exchange-traded fund (ETF), which aims to track the country's main stock market index, climbed nearly 1 percent on its market debut on Monday, defying recent weakness in the broader market.

 

First Metro Philippine Equity Exchange Traded Fund Inc was up 0.8 percent in morning trade against its net asset value per share of P99.20. The Philippine Stock Exchange's 30-stock main index was up around 0.1 percent at noon break.

 

The main index fell 5.7 percent in November and has gained only 0.3 percent in the current quarter.

 

The broader market is slowly recovering from the impact of last month's super Typhoon Yolanda (Haiyan) on the country's overall growth prospects. Uncertainty over when the US Federal Reserve will begin tapering its stimulus is also weighing on the market.

 

The Philippines is still the third-best performing market in Southeast Asia so far this year, climbing around 7 percent.

 

About P58 million worth of shares exchanged hands by noon, or about 8 percent of the total ETF shares listed.

 

Homegrown money manager First Metro Asset Management Inc, which launched the ETF, said it listed P750 million ($17.13 million) worth of the ETF shares, but it expects the fund's registered market capitalization of P3 billion to be fully taken by early next year.

 

Small investors wanting to enter the stock market can take advantage of the cheaper entry values offered by ETFs, Roberto Juanchito Dispo, president of First Metro Asset's parent First Metro Investment Corp., told reporters.

 

First Metro wants to raise the fund's capitalization to P10 billion, and hopes to get the securities regulator's approval on the planned increase next year.

 

Shares of the fund are sold per unit, and is composed of 200,000 shares per lot. – Reuters