- Decline in Operating Revenues
The decrease in net income was primarily attributed to a 2.3% decline in operating revenues, which totaled Php 722.75 million. This downturn was largely due to a significant 10.7% reduction in the average trading value, which in turn reduced the exchange's income from service and transaction fees by Php 16.20 million and Php 9.07 million, respectively. Despite this, the PSE reported a 33.6% increase in data revenue, which helped partially offset the decline in overall revenues.
For a more detailed look at how trading values are impacting market performance, you can explore our Top Gainers and Top Losers pages, which highlight the most significant movements in stock prices. - Listing-Related Activities and Revenues
On the brighter side, the PSE saw a slight increase in listing-related revenues, which rose by 0.2% year-on-year to Php 290.98 million. During the first six months of 2024, the local bourse facilitated a variety of fundraising activities, including two initial public offerings (IPOs), three follow-on offerings (FOOs), one stock rights offering (SRO), and three private placements. These activities indicate a robust interest in capital-raising initiatives, despite the broader market challenges.
To see which stocks are currently most active and contributing to market dynamics, visit our Most Active page - Growth in Other Income
In addition to its core revenues, the PSE's other income grew by 20% to Php 161.98 million, driven by interest income and foreign exchange translation gains. However, this growth was tempered by a Php 2.57 million mark-to-market loss on the fair value of investments in financial assets, reversing a gain of Php 1.06 million in the same period last year. - Rising Expenses Amidst Geopolitical Uncertainty
The PSE also experienced a rise in total expenses, which increased by 9.4% to Php 416.13 million, up from Php 380.50 million in the previous year. The increase in expenses, combined with lower revenues, contributed to the overall decline in net earnings for the period. - Outlook for the Second Half of 2024
Looking ahead, PSE President and CEO Ramon S. Monzon expressed cautious optimism about the remainder of the year. He noted that expectations of a possible rate cut and the strong first-half earnings of banks and other listed firms could lead to more active trading in the latter half of 2024. Additionally, the PSE has a robust fundraising pipeline, with plans for five more FOOs, one SRO, and one IPO, potentially generating up to Php 48.36 billion in capital.
Monzon also highlighted the PSE's ongoing strategic initiatives, including the planned acquisition of the Philippine Dealing System Holdings Corp., which is expected to be completed in the coming months. This acquisition is part of the PSE's long-term strategy to sustain its growth and strengthen its position in the financial markets.
The first half of 2024 has proven to be challenging for the Philippine Stock Exchange, with earnings taking a hit due to external factors such as geopolitical concerns and high interest rates. However, the PSE remains focused on its growth strategies and is optimistic about the potential for improved market activity in the second half of the year.