Purisima backs link up of Southeast Asian exchanges

MANILA, Philippines - The country’s Finance chief is backing a proposal that seeks to link up the Philippine Stock Exchange with other  Southeast Asian bourses.

In a speech during the membership meeting of the Shareholders Association of the Philippines (Sharephil) yesterday, Finance Secretary Cesar Purisima said this initiative is aimed at further deepening the country’s capital markets.

“We’ve been pushing hard for the stock exchange to link with other exchanges in the Asean but this has been pushed back because some people fear it..Some fear they might lose their jobs,” Purisima said.

“There are winners and there are losers. Our goal is to make sure there are more winners than losers,” Purisima said.

The Philippine Stock Exchange has been pushing for the integration of the local stock market with Asean exchanges to be able to expand its products and match those offered by other equity markets in the region.

The local bourse, however, is waiting for the Securities and Exchange Commission  to become a member of the International Organization of Securities Commissions (IOSCO) which would give the country’s corporate regulatory environment a vote of confidence and allow  cross border trading.

The Philippines had been seeking membership to the Paris-based body since 2008.

Purisima urged Sharephil to continuously educate the public on the benefits of investing in the local stock market.

He noted that at present, only about one percent of the population invests in the stock market compared to 33 percent in Singapore.

“I’d really like to see more especially since we have a middle class that is earning well,” he said.

“There is so much that you can do and that you must have a program of action that will enlarge your influence,” he added.

He also urged Sharephil to become a member of the Capital Markets Development Council (CMDC), a public-private partnership focused on recommending policy and legislative reforms toward the development of the Philippine capital market.