MANILA, July 12 – Finance Secretary Carlos Dominguez III said investing in the Philippines’ stocks market is now a better option for investors since it has improved and matured due to continued reforms in the past years.
In his speech during the celebration of Davao City-based Phoenix Petroleum’s 10th year listing with the Philippine Stock Exchange (PSE), Dominguez said “market capital is the most efficient way to raise funds for a company’s operation and expansion.”
He said dramatic changes have happened in the domestic capital markets in the past years.
One such reforms is the modification in the disclosure rules, which “curtained insider trading and encouraged investors’ participation in the market, confident this has become an even playing field fair for all investors.”
“These reforms are continuing, making the capital markets more inclusive,” he said.
The Finance chief stressed that “maturation of our capital market should be good news for our enterprises.”
“It offers alternatives for raising capital, compared to the bank financing. It allows the best managed corporations to quickly grow, supported by a broader base of investors,” he said.
Citing latest figures, Dominguez said stock market capitalization as of July 7, 2017 totaled to PHP16.4 trillion, nearly four times the PHP4.9 trillion registered by the fixed income market at the end of the first quarter this year.
“One could say that our capital market has finally come of age,” he said.
Dominguez said that as more businesses list with the PSE “the greater the incentive for them to meet global benchmarks in corporate governance.”
“The market demands transparent and accountable corporate governance as well as reliable rules of the game. It hastens the modernization of our domestic economy, allowing the best companies to access not only local but also foreign investments,” he added.
To date, there are nearly 300 companies listed with the PSE.
However, the Philippine Stock Exchange index (PSEi) or the main index is composed of fixed basket of only 30 listed companies, which are the largest and most active common shares. (Joann Santiago/PNA)
