PSE projects market rebound after decline in 2022

BOURSE operator Philippine Stock Exchange, Inc. (PSE) expects local shares to bounce back in 2023 as it banks on the further reopening of the economy after 2022 saw the main index drop by 7.8%.

“We are optimistic that the stock market can bounce back next year as the global economy continues to open up and corporate earnings return to pre-pandemic growth levels,” PSE President and Chief Executive Officer Ramon S. Monzon said in a press release on Thursday, the last trading day of the year.

Mr. Monzon said that despite challenges such as geopolitical tensions, higher inflation and increasing interest rates, he still expects the bourse to be resilient until yearend.

“The Philippines has shown its resiliency through better-than-expected gross domestic product (GDP) growth during the previous quarter, which we hope will carry over for the fourth quarter and in 2023,” Mr. Monzon added.

In the third quarter, the Philippine economy expanded by 7.6% or higher than predicted. The growth was better than the revised 7.5% posted in the second quarter and 7% a year earlier. GDP growth averaged 7.7% for January to September.

Meanwhile, PSE recorded a 52.96% decline in raised capital from primary and secondary shares to P110.29 billion from P234.48 billion in the previous year.

Despite this, it remained optimistic after it recorded nine initial public offerings (IPO) in 2022, marking the greatest number of maiden offerings since 2007 or 15 years ago.

The local bourse operator also conducted other capital-raising activities during the year, including a listing by way of introduction, five stock rights offerings and 12 private placements.

“We still consider 2022 a banner year in terms of the number of IPOs, and we look forward to continuing the listing momentum in 2023,” said Mr. Monzon.

“We see the equities market becoming a more attractive option for capital raising given the rise in interest rates and as valuations gradually recover,” he added.

In 2022, the PSE saw the listing of three new real estate investment trusts (REITs), two of which are energy-themed.

“The local REIT market is still teeming with potential opportunities and we expect our REIT roster to expand and potentially diversify to include other themes beyond what we have listed so far,” said Mr. Monzon.

On the last trading day in 2022, the PSE index closed at 6,566.39 points, down by 0.15 points, bringing the year-to-date main index to decrease by 7.8%.

The broader all-shares index rose by 12.71 points or 0.36% to 3,462.04 on Thursday.

The daily average value turnover for the year was at P7.3 billion, down by 18.9% from the previous year’s P9-billion average, the PSE said.

The market registered P67.95 billion worth of net foreign selling versus P2.75 billion in net foreign selling in 2021. — Justine Irish D. Tabile