PSE gains from PDS takeover

Gains from its takeover of the country’s bond trading platform boosted the earnings of Philippine Stock Exchange Inc. (PSE) by 25 percent in the first half of the year, offsetting foreign exchange losses.

In a regulatory filing on Monday, the operator of the local bourse said its bottom line in the January to June period had climbed to P495.7 million from P398 million previously.

Its acquisition of a controlling interest in Philippine Dealing System Holdings Corp. (PDS) was the main growth driver, according to PSE.

As of last month, PSE owned 92.06 percent of PDS following its buyout deal with the Bankers Association of the Philippines (BAP).

BAP, which consists of at least 20 local banks and 24 foreign bank branches, agreed to sell up to 1.8 million of its common shares in PDS, representing a 28.83-percent stake.

PSE’s operating revenues surged by 82 percent due to a “significant increase” in trading- and listing-related fees. It has yet to disclose its full financial report bearing additional details.

PSE noted, however, that the surge in revenue from trading-related fees came from transaction fees of PDS subsidiaries. The increase in listing-related revenues, on the other hand, was because of additional listing and listing maintenance fees, which grew by 57 percent and 43 percent, respectively.

Depositary securities account fees from the Philippine Depository and Trust Corp. also added P282.4 million to PSE’s total top line.

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This partly offset the 70-percent jump in expenses and 58-percent slide in other income, PSE said. The latter was on the back of foreign exchange losses as the market remained volatile, along with interest expenses.

This year, PSE expects to facilitate P186 billion in capital raising, up from its initial goal of P140 billion with more companies set to tap local equities to bankroll expansion plans, among others.

PSE is anticipating two initial public offerings, two follow-on offerings, one stock rights offer and one listing of convertible cash warrants in the second semester.