Makati—(PHStocks)—The Philippine Stock Exchange Inc. (PSE) reported a net income of PhP164.73 million in the first quarter of 2016, down by 13.9% from the same period last year. The decline was due mainly to lower trading-related income and service fees as the stock market registered lower total value turnover during the quarter.
Operating revenues also experienced a decline of 18.3% from PhP320.66 million during the first quarter of 2015 to PhP262.07 million in the same period this year. Operating revenue components like trading-related income and service fees went down by 23.3% and 36.6 percent respectively. Average daily value turnover in the stock market from January to March 2016 fell by 37.6% to PhP6.78 billion from PhP10.87 billion during the same quarter in 2015.
“Global equities experienced volatility in the first quarter, and for emerging markets like the Philippines, it meant lesser foreign fund inflows. Locally, the pendency of the national elections kept some investors and potential issuers at bay,” said PSE President and CEO Hans B. Sicat.
The decline in net income was mitigated by controlled expenses as well as the increase in PSE’s other income source. Total expenses were reduced by 9.0 percent to Php131.18 million from PhP144.20 million in the same period a year ago.
“Trading activity has been picking up following the conduct of what many investors deem as peaceful and credible elections. We are also anticipating listing activities that were initially put on hold to proceed by the second half of the year,” Sicat added.