Foreign buying in stock mart up by 89%

The Philippine equities market is back on the radar screen of investors, as foreign buying in the stock market reached P15.7 billion in the first half of the year, up 89 percent from P8.3 billion year-on-year, PSE president Val Suarez said Wednesday.

Suarez said in an economic briefing foreign buying in July alone rose 40 percent on year.

Suarez said the PSEi is now second fastest-growing stock market in Asia.

Listed companies in the first six months of the year raised P32.8 billion in capital through the stock market via stock rights offering, nearly matching the P38.8 billion raised for the full-year 2009.

Suarez attributed the PSEi’s positive performance to the increased economic activity in the country and renewed confidence in the market.

Suarez said the exchange would continue to implement reforms to boost the local equities market.

The exchange will focus on attracting more companies to list in the stock exchange to improve liquidity in the PSE. Only a few of the country’s top 1,000 are listed in the stock exchange.

Suarez said the exchange is also waiting for the issuance of the implementing rules and regulations of the Bureau of Internal Revenue on the Real Estate Investment Trust Law.

Suarez said the exchange expects an IPO wave once the rules of the Reit Law are finalized. Several real estate companies like Ayala Land Inc., Robinsons Land Corp. and SM Prime Holdings Inc. are just awaiting for the rules before filing their Reit applications with the Securities and Exchange Commission. –Jenniffer B. Austria, Manila Standard Today