Philippine Stock Exchange index surges 38% in 2010

The Philippine Stock Exchange index surged a record 1,148.86 points or 38 percent from the start of 2010 to Dec. 30 — the last trading day of the year. On Thursday, the PSEi gained 1.82 points to close at 4,201.14. The main index started the year at 3,052.28 on Jan. 4. Robust economic growth and benign inflation and interest rates "largely buoyed stock market sentiment and reinforced investor and business confidence," PSE chairman Hans Sicat said in a statement. Global stock markets were also trending higher as Western economies showed signs of recovery. "There was an improving capital market conditions," he said.

PSE board members engage in revelry at the close of 2010’s last trading day. Philippine Stock Exchange

Value turnover totaled P1.21 trillion According to the stock exchange, value turnover totaled P1.21 trillion this year, up 29.8 percent from P930.4 billion last year. The combined market capitalization of shares listed on the PSE rose 47.1 percent to P8.87 trillion this year against P6.03 trillion in 2009, data showed. Foreign investors took a net buying position with P35.6 billion worth of transactions from P14.9 billion in the same comparable period. The amount of capital raised in the market totaled P84.9 billion from P38.8 billion, with the initial public offering of Cebu Air Inc., Nickel Asia Corp., and IP Converge Data Center Inc., and the stock rights offering of First Gen Corp., SM Development Corp., and Bank of the Philippine Islands. Sicat said he is bullish about the initiatives and reforms the PSE has undertaken to "enhance the growth of the capital markets." On July 26, the stock exchange rolled out a new system designed to trade a wide range of cash, debt, and derivative instruments and improve the capacity of the PSE to handle sharp increases in daily transactions. The PSE board also approved the spin-off of the exchange’s market regulation division into an independent and self-regulating company to monitor activities of trading participants. Its "Corporate Governance Guidelines" for listed firms to help govern the relationships among the board, management, and shareholders was also launched this year. — With Jesse Edep/VS, GMANews.TV