Market set to rebound, says PSE president

The Philippine Stock Exchange (PSE) is optimistic that the local bourse will rebound after plunging to the 6,400 level as investor confidence was negatively affected by geopolitical tensions.

The market will “eventually turn around” following the decline, PSE President and Chief Executive Officer (ceo) Ramon S. Monzon told reporters during a GCash media event last week.

He attributed the market’s decline to the escalating tensions between Israel and Iran.

 “It is a global influence. I think the market will get over that. We always have these challenges but somehow the market rebounds,” Mr. Monzon said.

The benchmark Philippine Stock Exchange Index (PSEi) ended its nine-day losing streak on Wednesday last week. It flirted with the 7,000 level in early April but lost momentum following macroeconomic and geopolitical issues.

The PSEi faltered at the end of the week as it retreated by 1.22% or 80.19 points to 6,443 on Friday.

On April 13, Iran launched a missile and drone attack on Israel following an Israeli strike on Iran’s embassy in Syria on April 1, which killed top Revolutionary Guards commanders.

Iran’s attack caused limited damage in Israel, as the missiles were intercepted and shot down by its IIron Dome defense system.

Meanwhile, Mr. Monzon said the PSE is sticking to its original target of having six initial public offerings (IPOs) and achieving P175 billion worth of raised capital this year.

He said there are companies in talks with the PSE regarding potential IPOs.

“I’m an eternal optimist. Never say die. We are still targeting six (IPOs),” Mr. Monzon said.

The PSE recently approved mining company OceanaGold Philippines, Inc.’s listing of 2.8 billion shares for its P7.9-billion IPO under the bourse’s main board.

OceanaGold is scheduled to have its IPO on May 13.

If realized, the domestic unit of the Australian-Canadian gold and copper mining company will be the first Philippine IPO this year. It is expected to be followed by the public listing of Saavedra-led Citicore Renewable Energy Corp. on May 31. — Revin Mikhael D. Ochave