The Philippine Stock Exchange, Inc.
PSE eases rules for oil, gas, RE firms wanting to list

MANILA, Philippines - The Philippine Stock Exchange (PSE) is relaxing the rules for oil, gas and renewable energy (RE) firms seeking to list on the local bourse to fund the development of their expansion.

PSE is seeking public comments on the proposed rules which were drafted with the assistance of the Department of Energy and the Securities and Exchange Commission and following a study on the regulations imposed by local and foreign regulators.

In particular, the exchange is easing the operating history requirement of the exchange under the second board.

Petroleum and RE companies, that may have superior potential but lack the operating history required under the rules, are unable to tap the local capital market due to the exchange’s existing rules.

The proposed rules aim to address the need to customize the listing and disclosure rules of the exchange for the benefit of companies engaged in petroleum production and renewable energy. The move is also in line with the PSE’s objective of seeing more companies traded on the exchange.

The PSE noted that petroleum and renewable energy firms, particularly those in the early stages of exploration and development, wishing to list on the bourse face certain hurdles with regard to the requirements for initial listing on the exchange.

Local investors, both small and institutional, are also limited in their ability to invest in and help develop natural resources in the Philippines because of the lack of listed natural resources companies on the exchange.

“This deficiency seriously impedes the growth and development of the country. In these times of rising energy and commodity costs and global instability, a key to national security for any nation, especially a small developing nation such as the Philippines, is the ability to exploit and develop its natural resources internally with less reliance on the global or outside market. Interruption or inefficiency in this process can impede national development and independence and result in threats to the country’s economy and national interests,” the PSE said.

The PSE said that while it recognizes the paramount need to accurately inform the investing public about the inherently risky and speculative nature of the petroleum and renewable energy industries, it also notes the large potential upside available to investors through investment in these sectors.

The exchange does not implement a specific and separate set of listing requirements and reporting standards applicable for petroleum and renewable energy companies which may be compared and similar to the Philippine Mineral Reporting Code (PMRC) for mining companies.

Under the proposed rules, the applicant firm should either be an operator or a co-venturer (which is a company that holds adequate interest in a service contract having the same rights and obligations with all of the other co-venturers) of a valid and subsisting service/operating contract duly approved and awarded by the government.

Applicants are required to submit the initial listing documentary requirements, either for an initial public offering or for a listing by way of introduction.

According to the PSE, the Listings Department, during the course of evaluation on the documents and representations made, may require applicants to submit additional documents.
PSE sets broker survey for proposed afternoon trading

The Philippine Stock Exchange (PSE) is seeking inputs from its trading participants relating to its plan to reintroduce an afternoon trading session to boost market activity.

In a memorandum posted on its website on Tuesday, the PSE said trading participants have until July 5 to participate in a survey seeking to determine the implementation date of the trading extension.

Options being offered by the PSE are the third or fourth quarter of this year, or the simultaneous implementation alongside the ASEAN Linkage, which is expected to “go live” by the end of the first quarter of 2012.

At present, trading hours at the PSE run from 9:30 a.m. to 12 p.m. An afternoon session is seen to run from 2:00 p.m. to 4:00 p.m.

Provisions for an afternoon session have been made since the PSE’s migration to a new trading system in July last year. But the implementation for extended hours was held off to give market participants time to adjust to the new system.

PSE president and chief executive officer Hans Sicat said last May that the implementation of an afternoon session could be done in several phases, to be adjusted as volumes grow.

Reactions from stock brokers were mixed yesterday.

“I think the PSE has to first do its part to drum up listings,” Joseph Roxas, president of stock brokerage firm Eagle Equities Inc., said in an interview on Tuesday. Roxas pointed out that the local bourse still remains among the smallest in the region.

A second stock broker noted that the measure may help boost activity by signaling to foreign players that the PSE is “serious” in attracting more investments.

“If you want business, you have to be open for it,” the stockbroker said.

The PSE earlier scrapped afternoon trading in 2002 eight months after it was implemented, citing thinner than expected trading. Interest in reviving afternoon trading started under the stint of former PSE president Francis Lim in 2009.
SEC thumbs down PSE bid to recall P1-M fine

MANILA, Philippines - The Securities and Exchange Commission (SEC) has thumbed down the Philippine Stock Exchange’s request to reconsider its decision to impose a P1 million fine on the bourse.

The PSE was given five days from July 4 to settle the penalty.

The penalty stemmed from the PSE Nominations and Elections Committee’s failure to follow its own rules in qualifying candidates for its board of directors in the annual election held last month.

An investigation conducted by the SEC showed that the PSE Nomelec failed to conduct diligent screening of eight candidates by declaring them qualified even though the company or brokerage firm they represented “had violated various provisions of the PSE Amended Market Regulation Rules as well as Section 40.2 of the Securities Regulation Code.”

The 2011 Nomelec rules require that broker and non-broker candidates must be certified compliant with the securities law and PSE and/or SEC rules by the concerned departments of both regulators.

In particular, the SEC said the PSE Nomelec ignored the violations committed by candidates representing San Miguel Corp.,The First Resources Management and Securities Corp., Vantage Securities, Summit Securities, RTG & Co Inc., Lucky Securities, IGC Securities and Asia Pacific Capital Equities and Securities Corp.

The PSE, however, noted that the candidates had submitted certificates from the SEC that the brokerage firm they represent had valid licenses and had been compliant with the PSE and SEC rules.

But the SEC stressed that while broker candidates have valid licenses, this does not mean they are already compliant with the SEC and/or PSE rules.

The SEC explained that “violations of PSE and SEC rules may have been committed after the issuance of the license and not all violations may result in the suspension or revocation of license.”

It added that its certifications indicate that these brokers are authorized to operate as PSE trading participants and had no outstanding liabilities but the certifications also noted that these brokers had certain violations.
DOF clears tax rules for REIT Act

By Katrina Mennen A. Valdez, Reporter

THE Department of Finance has approved the delayed and disputed taxation rules of the Real Estate Investment Trust Act, with the guidelines to take effect within two weeks.

Finance Secretary Cesar Purisima told reporters on Wednesday that he already approved the revenue regulation prepared by the Bureau of Internal Revenue.

“I have already signed the RR, and it will be published within two days, and hence, would take effect after two weeks upon its publication,” Purisima said.

The REIT Act lapsed into law in December 2009 but its implementation has been put on hold as fiscal authorities and corporate regulators failed to agree on the proportion of ownership between the real estate firms and the public.

REITs are companies that own and operate income-generating real estate assets, which include offices, apartment buildings, hotels, warehouses, shopping centers and highways.

Property developers led by Ayala Land Inc., SM Prime Holdings Inc. and Robinsons Land Corporation had expressed interest in undertaking REIT offerings.

The DOF had insisted that REIT companies float at least 51 percent of their respective shares, saying the market’s original proposal of 33 percent was too low.

The government and the private sector struck a compromise of 40-percent minimum public float for the first year, with public ownership gradually rising to 67 percent within three years from the REIT listing.

BIR Commissioner Kim Jacinto-Henares had said that since the REIT law would incur a revenue lesion of at least P10 billion a year for the government, its very essence, which is to expand the public’s ownership and enjoyment of the fruits from this sector, shall be the basis of the tax relief given to real estate companies.
PSE income up 18% in 1H

MANILA, Philippines - The Philippine Stock Exchange's (PSE) net income for the first six months reached P174.80 million, up 18% from P148.30 million in the same period last year.

In a disclosure to the Securities and Exchange Commission (SEC), the PSE reported that revenues also grew by 22% to P426.58 million from P350.56 million due to the growth in listing-related income, trading-related and service fees.

Listing-related income registered at P178.16 million or a 31% increase due to higher fees collected from follow-on listings.

Trading-related fees were also higher by 22% to P96.04 million. Service fees generated by the Securities Clearing Corp. of the Philippines, a wholly-owned subsidiary of PSE, also increased to P118.18 million from P91.66 million due to higher trading volume.

The PSE index posted a new record high last August 1 at 4,550.53. As of August 12, the PSEi has gained 2.9 percent or 120.59 points year-to-date.

"We remain optimistic that our efforts to boost liquidity and improve corporate governance in the stock market will continue to enhance not only our financial performance but the confidence of shareholders and investors in the Exchange," PSE President and Chief Executive Officer Hans B. Sicat said.

Some of the companies that conducted listings and capital-raising activities as of June 30, 2011 are: Megawide Construction Corporation (IPO), San Miguel Pure Foods Company, Inc. Preferred Shares (follow-on), Sta. Lucia Land, Inc. (share for property swap), Banco de Oro Unibank, Inc. (placement), Metropolitan Bank & Trust Company (stock rights), Robinsons Land Corporation (stock rights), San Miguel Corporation (follow-on), Trans-Asia Oil and Energy Development Corporation (stock rights), and Metro Pacific Investments Corporation (underlying common shares for convertible securities).

Operating expenses for the period were higher by 24% to P200.62 million largely due to expenses related to PSEtrade, the PSE's new trading system, higher consultancy contracts on studies for the development of new products and higher taxes, to name a few

Waiting Big Grin
Posted on September 11, 2011 10:15:59 PM
Local bourse launches revamped Web site today

THE PHILIPPINE Stock Exchange (PSE) formally launches today its revamped Web site, with initial previews already available over the weekend featuring a more prominent link to the planned ASEAN exchange and a new navigation design.
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
The PSE is implementing its amended trading hours as approved by the PSE
Board. The new trading hours shall be in two phases:

Phase 1 - Effective October 1, 2011 9:30 - 1:00 PM
Phase 2 - Effective January 1, 2012 9:30 - 3:30 PM

Attached is PSE Memo on the details of the new trading hours for your
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
Posted on September 29, 2011 12:23:09 AM
PSE shelves launch of Maharlika Board

THE LAUNCH of a new board showcasing firms with high governance standards will not push through this month, Philippine Stock Exchange (PSE) officials yesterday said.
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
Listed companies’ profits down 7% in 1st semester
Increasing costs of inputs gnawed at earnings
By: Doris C. Dumlao
Philippine Daily Inquirer
12:26 am | Friday, September 30th, 2011
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.

Forum Jump:

Users browsing this thread: 1 Guest(s)