Stock market trading activity spikes in Q1 amid correction in PSEi

Trading activity in the Philippine Stock Exchange (PSE) continued to improve in the first quarter despite a slight decrease in its main index (PSEi) by 3.5 percent, according to a statement released Friday. For the period December 31, 2010 to March 31, 2011, the PSEi slipped 146 points to end at the 4,055.14 level, according to the PSE statement. “The healthy correction in the stock market is expected after last year’s spectacular index performance," PSE President and Chief Executive Officer Hans B. Sicat said. Trading activity increased in the first quarter as the total value turnover grew by 40.2 percent year-on-year. Daily value turnover averaged P5.08 billion or 38.0 percent higher than the P3.68 billion average during the first quarter of 2010. The combined market capitalization of listed domestic issues in the PSE also grew by 0.5 percent to P6.92 trillion compared with P6.89 trillion as of end-2010. Preliminary figures also show that foreign investors were net sellers in the amount of P4.94 billion in the first quarter. In terms of sectoral indices, the Mining and Oil index emerged as the best performer during the first quarter, rising by 4.3 percent from its closing level in 2010. This was followed by Holding Firms which grew by 1.4 percent. Total capital raised amounted to P32.23 billion during the first quarter mainly due to the follow on preferred share offering of San Miguel Pure Foods Company, Inc. “The pace of market activity has been good this last quarter and we expect more landmark transactions to follow. Initial public offerings (IPOs), follow-on and stock rights offerings are just some of the different modes available to corporations to access the market. " Mr. Sicat said. The PSE is the country’s only stock exchange with 249 listed companies and 133 active trading participants. The Philippines’ Securities and Exchange Commission conferred self-regulatory organization status to the PSE in 1998. In 2003, PSE shares were listed by way of introduction and the company currently has a market capitalization of approximately P 11.67 billion (US$268.64 million). -- GMA News