PSE to help market rise by expanding trading possibilities

SIEGFRID O. ALEGADO, GMA NewsJanuary 17, 2013 11:45am

 

The Philippine Stock Exchange will try to keep the market momentum this year by introducing new products like online transactions that supports affordable trading for retail clients using their computers or smartphones.

“The market is headed to new highs as long as we can provide the basic foundation and fundamentals,” PSE president and chief executive officer Hans Sicat told local and foreign journalists at the Foreign Correspondents Association of the Philippines’ (FOCAP) forum.   

 

Average trading value so far in January showed a 50 percent year-on-year, Sicat noted. 

 

“Trading values in January are usually low, now the growth this month indicates high demand for trading. With strong trading values, there is high probability that the index will go up overtime,” he said. 

 

“Historically low interest rates and low inflation... helped fuel the stock market index,” Sicat said, noting that this is a “proverbial sweet spot for investments in the exchange.”

 

Admitting that the market's price-to-earnings ratio is high, Sicat, however, said, “This is backed by very strong performance from the corporate sector.

 

“The corporate sector demonstrated growing revenues 20 percent year-on-year – a faster growth rate than the economy – due to more product lines, expanding the market,” the PSE chief noted. 

 

The PSE is also trying to grow its retail market by introducing new products. 

 

“In terms of helping move the market, we’re opening an online service bureau – retail clients to access information on their computers and their smart phones,” Sicat said. 

 

With the online accounts at the PSE growing 33 percent annually, he added, “We’re trying to bring the market to the retail investor at a very affordable cost,”  he added.

The PSEi already notched seven new record highs this year – the last at 6,093.90 last Monday. The PSEi notched 38 all-time highs last year. — VS, GMA News