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Best stock market performance seen this year
Iris Gonzales (The Philippine Star) – January 4, 2021-12: 00 am
MANILA, Philippines – The Philippine Stock Exchange (PSE), operator of the local exchange, expects to see better performance of the stock market this year, along with the government’s announced plan for economic recovery.
“The plan announced by the government to initiate mass local inoculation to combat COVID-19 from the second half of 2021 would allow the lifting of all restrictions, which would cause a strong rebound in corporate profits and thus allow the economy will take off “, said the president of the PSE, Ramón Monzón. said.
While the new COVID-19 strain brings new threats to growth prospects, Monzón said the economy is still poised for a recovery this year thanks to growth in OFW cash remittances, record dollar reserves, peso Filipino strong and tough property. market.
Last year, despite the challenging environment, capital raised through the local exchange reached 104 billion, 2.9 percent more than the 101 billion figure in 2019.
Of the amount, 44.3 billion were obtained from initial public offerings; 41.2 billion follow-up public offerings; P12.8 billion of share rights offerings and 5.6 billion of private placements.
By 2021, Monzón expects capital raising to continue.
“Although the current economic environment remains fragile due to the unpredictability of the COVID-19 situation, we choose to be optimistic,” he said.
The PSE targets three IPOs and four REITs or real estate investment trust listings.
“We are confident that companies will be attracted to listing given the revised listing rules for REITs, and even more so once we receive approval from the Securities and Exchange Commission on our proposed amendments to the Main Board listing standards. and SMEs, ”said Monzón.
DDMP REIT Inc., for its part, has filed an application for a REIT IPO consisting of seven DoubleDragon Properties Corp. buildings on its rental properties at DD Meridian Park in Pasay City.
DDMP REIT is looking to issue 6.536 billion secondary shares at P2.25 per piece for a total IPO offering of P14.71 billion.
The company aims to list on February 26.
In total, the PSE expects companies to return to the stock market as the local economy recovers from the impact of this pandemic.
For this year’s PSEi level, Michael Ricafort, chief economist at Yuchengco-owned Rizal Commercial Banking Corp., delivered a forecast of 7,500 to 8,000.
This takes into account near-record bond yields and excess market liquidity as a result of quantitative easing.
This would also depend on the deployment of COVID-19 vaccines to help reduce new local COVID-19 cases and justify additional measures to reopen the economy, Ricafort said.
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