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Philippine Stock Exchange reports PhP406.19 million net income in 2011

Philippine Stock Exchange (PSE) reports PhP406.19 million net income in 2011, slightly lower from the PhP417.50 million in the same period the previous year.
But the revenues of the Philippine Stock Exchange (PSE) in 2011  boosted by nearly 10 percent due to higher trading activity and record capital raising levels.

In a disclosure submitted to the Securities and Exchange Commission, the PSE reported that operating revenues grew by 9.5% to PhP900.76 million in 2011 from PhP822.42 million the previous year.

The PSE generated higher trading-related fees revenues which increased by 15.2 percent to PhP202.86 million from PhP176.03 million. Service fees generated by the Securities Clearing Corporation of the Philippines, a wholly-owned subsidiary of PSE, also increased by 17.8 percent to PhP254.03 million from PhP215.60 million due to higher trading volume. Average daily trading reached PhP5.71 in 2011, or 15.5 percent higher than in 2010.

Meanwhile, listing-related income was registered at PhP429.29 million or a 6.87 percent increase from 2010.

Capital raised at the Philippine stock market reached PhP107.50 billion in 2011, the highest total amount raised in a single year. This figure is 26.6 percent higher than the amount raised last year and breaches by 19.3 percent the previous record posted in 2007. Capital raising activities include initial public offerings, follow-on offerings, stock rights and private placements.

A total of five companies conducted initial public offerings last year namely: Megawide Construction Corporation, Puregold Price Club, Inc., Cirtek Holdings Philippines Corporation, Calapan Ventures, Inc. and Touch Solutions, Inc. - raising a total of P9.04 billion from the market. Philex Petroleum Corporation listed by way of introduction. Capital proceeds from private placements, stock rights offerings and follow-on offerings amounted to PhP42.85 billion, PhP40.61 billion and PhP15 billion, respectively.

Total costs of services and general and administrative expenses for the period were higher by 8.2 percent to PhP440.59 million largely due to costs incurred related to the development of new products and higher depreciation costs attributable mainly to the newly installed PSEtrade or the trading engine that replaced the old Maktrade trading system. Repairs and maintenance, which also includes related costs on the new trading engine, also went up in 2012

Meanwhile, other income suffered a decline because of the absence of one-time gains on available for sale investments registered in 2010 amounting PhP36.95 million although this was tempered by gains from the investment management account amounting to PhP12.34 million. Meanwhile, interest income suffered a net decrease of PhP18.83 million due to lower interest yields in 2011.

As a result, net income for 2011 reached PhP406.19 million, slightly lower from the PhP417.50 million in the same period the previous year.

"We belive that the fruits of the investments we have been undertaking in the past years are now showing. We are highly encouraged by the increase in trading activity this year and we hope we could leverage on this momentum in our plans to introduce more products and services in the market." PSE President and Chief Executive Officer Hans B. Sicat said.

The PSE index posted an all-time high on March 14, at 5,050.99. Year-to-date as of March 14, 2012, the PSEi has gained 15.5 percent.
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"Philippine Stock Exchange reports PhP406.19 million net income in 2011" was written by Mary under the Business category. It has been read 2230 times and generated 0 comments. The article was created on and updated on 15 March 2012.
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