By Joann Santiago-Villanueva
MANILA – An executive of the Philippine Stock Exchange (PSE) said Thursday that the local equities market remains attractive amid risks from economic challenges both here and abroad, noting the record-high volume of the latest initial public offering (IPO).
This comes even as investors’ worries continue to weigh on the main index, now at about 5,820.
Roel Refran, PSE Executive Vice President and Chief Operating Officer, in a panel discussion at the ongoing ASEAN Capital Markets Forum (ACMF) International Conference in Intramuros, Manila, said the success of the IPO of Mynt, the parent company of financial services app GCash, shows how resilient the local equities market is.
The Mynt IPO on Oct. 20 registered record-high volume, raising PHP60.9 billion in investments on its launch.
President Ferdinand R. Marcos Jr., who led the bell-ringing and listing ceremony at the PSE, said, “The strong interest it (IPO) has attracted from local and international investors is proof of the continued confidence in Filipino enterprises.”
“This just shows that digital technology can make investment opportunities more accessible to everyone,” he said.
Refran said the record-high investment that the IPO attracted on its first day alone “reverberates how it connects to the economic story of the country – inclusivity, (and) access to capital because of the services they (GCash) provide.”
“That’s what makes it more representative of the promise economically,” he said, noting that ”for all the risks, there’s that promise.”
“And that’s what GCash represents for us. Behind the numbers, it’s that fundamental story behind it. It’s inclusivity. It’s not just technology for the sector, but it’s connecting a lot of underserved sectors of the economy to what could be a very understated meter to create the multiplier effect.”
This, he said, shows “a forward statement and (that) the forward dimensions are believable, (and) are very credible.”
“And that’s what makes capital markets still probably very attractive compared to other international classes,” he added.
