DESPITE geopolitical concerns and macroeconomic headwinds, the Philippine Stock Exchange Inc. (PSE) chief remains hopeful of an initial public offering (IPO) rebound following last year's poor showing.
The bourse still expects six companies to go public in 2024, PSE President and CEO Ramon Monzon said last week.
"We're maintaining [the target]," he said in English and Filipino.
"I'm an eternal optimist; never say die. We're still eyeing six [IPOs]."
The PSE recorded just three IPOs last year, down from nine in 2022, amid challenges such as high inflation and interest rates and subdued economic growth.
More companies also left the bourse than joined: six companies were delisted — four voluntarily — in 2023.
At the start of this year, the bourse cleared the P13-billion IPO of Saavedra-led Citicore Renewable Energy Corp. (CREC), which has since adjusted the indicative date of the offer from March 2024 to the second quarter of the year.
The bourse earlier this month also approved the P7.9-billion listing of OceanaGold (Philippines) Inc., the Philippine unit of Toronto-listed OceanaGold Corp., which plans to debut on May 13.
The bellwether PSE index (PSEi), which at the start of this month seemed poised to rise back to the 7,000 level, has now dropped for three straight weeks.
It closed 3.25 percent lower week-on-week at 6,443 last Friday, snapping a two-day recovery, and is currently lower than the 6,554.04 posted at the start of 2024.
Initial market optimism was fueled by prospects of interest rate cuts, which have now dimmed due to rising inflation and mounting tensions in the Middle East have served to further dampen sentiment.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco said the PSEi may not yet see a "strong and sustainable rebound," particularly this week, amid prevailing worries.
Monzon, however, expressed optimism that the local market would "eventually" regain ground.
"Again, it's a global influence. I think the market will get over that. We always have these challenges, but somehow, the market rebounds," he said.
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