Stocks extend gains as PSE adds more sectors

MANILA, Philippines — Share prices inched up yesterday, the start of the protracted trading week, to sustain the gains last Friday as the local bourse steps up efforts to encourage more listings.

The benchmark Philippine Stock Exchange index or PSEi finished at 6,335.56, up 11.56 points or 0.18 percent while the broader All-Shares gauge added 9.90 points or 0.26 percent to close at 3,789.47.

Traders said investors are not yet fully convinced on the prospects of going back into the market as they wait for better catalysts such as improved corporate third quarter earnings.

A total of P6.59 billion worth of shares changed hands yesterday, with advancers beating decliners, 125 to 80, while 47 issues were unchanged.

PSE president Ramon Monzon, who was elected on Monday with a fresh mandate as president of the local bourse, said the bourse is stepping up efforts to encourage more listings on the board.

“We will be adding more sectors - one is the consumer sector and the other is technology, media and telecommunications,“ Monzon said.

There are currently six subsectors in the stock market board: financials, industrial, holding firms, mining and oil, services and property.

“The PSE will come up with new indexes, including one for companies with dividend paying records,” Monzon said.

Furthermore, he said the PSE is encouraging more SMEs to list with the now relaxed rules on SME listing.

One of the major changes being proposed to the SME listing rules is the adoption of the sponsor program, wherein companies with significant growth potential but are unable to qualify using the new SME board requirements may apply for listing through the sponsor model.

The sponsor, an investment house which should pass PSE’s accreditation, would be responsible for hand-holding the company from its IPO preparation phase until three years after listing to ensure that the company complies with listing and disclosure rules for all publicly listed companies, the PSE said.

For companies targeting the main board or the SME board in 2021 and 2022 but whose operations or businesses were adversely affected by COVID-19, the PSE said the bourse may consider the profitability of the applicant for any two fiscal years in the three most recent fiscal years, excluding the year of the impact.