9 IPOs in year of public floats
At home, investors were worried over the adverse impact of monetary tightening this year on our growth
Daily TribuneAt home, investors were worried over the adverse impact of monetary tightening this year on our growth
The year that is about to end has been full of twists and turns in the global capital market due to several reasons including the lingering Covid-19 problems, the conflict between Russia and Ukraine, and elevated fuel prices but initial public offerings bloomed amid a landscape of crises.
Locally, the benchmark Philippine Stock Exchange index ended flat on the last trading day of the year — declining 0.15 points only amid mixed sentiment as investors assessed the global economy next year.
"At home, investors were worried over the adverse impact of monetary tightening this year on our growth. Overseas, concerns over possible recession in the US were heightening," Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said.
The PSE had nine initial public offerings or IPOs in 2022, the most in a single year since 2007. Other capital-raising activities conducted this year included one listing by way of introduction, five stock rights offerings, and 12 private placements in 2022.
"We still consider 2022 a banner year in terms of the number of IPOs, and we look forward to continuing the listing momentum in 2023. We see the equities market becoming a more attractive option for capital raising given the rise in interest rates and as valuations gradually recover," PSE president and CEO Ramon S. Monzon said.
According to Luis Limlingan, Head of Sales of Regina Capital Development Corp., recession fears also weighed on investor sentiment in a losing week, month and year.
"Philippine shares were able to remain flat despite the broad selloff in the US… With 2022 in the books, investors started the last chance for window dressing," he said.
Net market value turnover has improved to P5.98 billion, higher than this month's average of P5.06 billion.
Sectors were mixed, Holdings had the biggest loss of 1.07 percent while the Properties jumped the most by 1.64 percent. Year-to-date, the market lost 7.81 percent.
Mining and Financials were the only sectors that ended in the green territory, up by 12.57 percent and 2.98 percent, respectively.
On the other hand, Services had the biggest loss this year, dropping 17.73 percent.
Meanwhile, the Bank of the Philippine Islands led the gainers in the index, up by 3.03 percent while Megaworld Corporation was at the bottom, losing 4.76 percent.
Daily trade averages P7.3B
Daily average value turnover for the year was at P7.30 billion, down by 18.9 percent from 2021's P9 billion average.
The market registered P67.95 billion worth of net foreign selling versus the P2.75 billion net foreign selling in 2021.
For the year, total capital raised from primary and secondary shares amounted to P110.29 billion, 53 percent lower than the P234.48 billion raised in the previous year.
The PSE saw the listing of three new real estate investment trusts or REITs this year, with two being energy-themed REITs.
"The local REIT market is still teeming with potential opportunities and we expect our REIT roster to expand and potentially diversify to include other themes beyond what we have listed so far," Monzon said.
Market capitalization registered an 8.4 percent decrease at P16.56 trillion from P18.08 trillion in the previous year.
