THE Philippine Stock Exchange (PSE) expects fundraising activities to grow next year with more companies looking to go public, as the bourse pins hopes on another interest rate cut to perk up the market.
“We probably will hit less than 80 billion pesos of capital raising this year. Next year, easily, we could do 120 billion pesos (S$2.7 billion) to 140 billion pesos,” president and chief executive officer Ramon Monzon said on the sidelines of a conference in Kuala Lumpur on Thursday (Nov 21).
At least six companies may go public next year, including a gaming firm in Clark Freeport Zone, the company behind Okada Manila casino and a water concessionaire, Monzon said. Only three companies listed this year – the same number as 2023 – and half of the PSE’s goal.
The Philippine stock index has been one of the worst performers among the world’s major equity gauges this month, falling below the 7,000 level after entering a technical correction last week.
“After the US elections, there are probably some uncertainties on the policies of the new US president that could affect the Philippine economy and eventually the Philippine market,” Monzon said.
The stock gauge may exceed the 7,000 level again by year-end if the Bangko Sentral ng Pilipinas lowers its key interest rate further by 25 basis points in its December meeting, he said. With the uncertainties over Donald Trump’s policies hopefully “cleared out pretty soon”, it could sustain gains to between 8,000 and 8,600 next year, Monzon added, citing analysts’ estimates.
The central bank may cut or hold its benchmark rate next month depending on inflation data, governor Eli Remolona said on Tuesday, later adding that policymakers may pause from easing if there are signs of price pressures.
The bourse also plans to offer more products to improve liquidity and boost valuations. It aims to introduce depositary receipts products early next year and is collaborating with Taiwan Stock Exchange on derivatives products that may be offered in 2026, Monzon said. Efforts to ease listing rules and reduce friction costs are also in the works, the exchange chief added.
“We will be launching a derivatives product that will, hopefully, allow foreign investors to hedge and not sell out,” Monzon said. “But I guess, more importantly, it is really getting the investors in the Philippines to invest.” BLOOMBERG
