PSE posts P398M net income in H1, down 4.7%

The Philippine Stock Exchange Inc. (PSE) posted lower earnings in the first half of 2024 amid tepid trading activities due to geopolitical concerns during the period.

In a statement, the PSE said its net income amounted to P398.02 million in January to June this year, down 4.7% from P417.51 million in the same period last year.

This was on the back of a 2.3% decline in operating revenues to P722.75 million.

The local bourse operator said the decline in operating revenues was attributed to the 10.7% decrease in the average trading value during the period.

The PSE said the decline in trading reduced its income from service fees by P16.20 million and transaction fees by P9.07 million.

The exchange said that a 33.6% growth in data revenue had partially offset the decrease in revenues.

Listing-related revenues were up by 0.2% year-on-year as listing fees increased to P290.98 million from P290.32 million.

From January to June this year, the PSE said two companies conducted initial public offerings (IPO), three listed firms had their follow-on offerings (FOO), one listed company did a stock rights offering (SRO), and three companies listed their shares issued via private placement transactions.

The PSE’s other income grew 20% to P161.98 million from P134.97 million “due to interest income and forex translation gains.”

The national stock exchange said the increase was tempered by the P2.57-million market loss on fair value of investments in financial assets, a reversal from the P1.06 million gain in the same period last year.

The PSE’s total expenses rose by 9.4% to P416.13 million from P380.50 million.

“Persistent high interest rates and geopolitical concerns contributed to tepid trading in the first half. We hope to see more active trading for the rest of the year on expectations of a rate cut and the record first half earnings of banks and other listed firms,” said PSE president and CEO Ramon Monzon.

“In terms of listing, our fundraising pipeline at this time includes five FOOs, one SRO and one IPO, which will generate up to P48.36 billion in capital,” added Monzon.

Of the five FOOs, three are expected to proceed in September while the IPO, SRO and remaining FOOs are tentatively scheduled in the fourth quarter, according to the PSE chief.

“PSE continues to pursue projects that will sustain the company’s growth over the years. This includes the planned acquisition of the Philippine Dealing System Holdings Corp., which we target to complete in the next few months,” said Monzon. —RF, GMA Integrated News