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The Philippine Stock Exchange is cautiously optimistic that the local stock market will perform better in 2021 and expects at least 10 companies to raise funds through the exchange through public offerings of shares.
“For 2021, we expect better market performance with the expectation that confidence in our economic recovery will gradually return,” said PSE President Ramon S. Monzon.
He noted that, “The plan announced by the government to begin local mass inoculation to combat COVID-19 from the second half of 2021 would allow the lifting of all restrictions, cause a strong rebound in corporate profits, and therefore Therefore, it would allow the economy to take off. “
However, Monzón said that “the discovery of a new strain of COVID-19 in the UK and the US could dampen investor sentiment again and that is why we are cautiously optimistic.”
He added that, “We are comforted by the statements made by our economic managers that the Philippine economy is poised for a recovery next year thanks to the growth of OFW’s cash remittances, record dollar reserves, strong Philippine peso and a property tough market. However, we must admit that restoring investor confidence will continue to be a challenge. “
While the current economic environment remains fragile due to the unpredictability of the COVID-19 situation, Monzón said: “We chose to be optimistic and therefore we are targeting three IPOs (initial public offerings) and four REITs (investment trusts. real estate) “.
The PSE expects companies to return to the stock market as the local economy recovers from the impact of the pandemic and is confident that companies will be tempted to list given the revised listing rules for REITs and if the SEC approves the amendments proposed by the PSE to its principals and listing rules at the Board of SMEs.
Aside from the IPOs and REITs, Monzón said: “We have a number of follow-up and stock rights offerings in the pipeline that include $ 20 million and $ 250 million DDS (dollar denominated securities) offerings from Cirtek and Cebu. Air; and the offer of rights of shares of P5 billion of AC Energy ”.
The PSE is also looking forward to the implementation of short selling, as well as the introduction of new industry and thematic indices, such as mid-cap and high dividend yield.
“Hopefully these new indices will attract the creation of new index-linked funds,” he said.
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