PDEx may miss Php200-B bond listings target amid global market volatility

By Leslie D. Venzon

MANILA, Sept. 28 (PNA) — The Philippine Dealing and Exchange Corp. (PDEx) expects to fall short of its Php200-billion worth of corporate bond listings target this year in the face of global market volatility, even as it sees robust listing activities in the last quarter of 2015 until next year.

PDex president and chief operating officer Cesar Crisol said the fixed income exchange is looking to hit a volume of Php100 billion in 2015, or just about half of last year’s Php190 billion.

“We were looking at something similar to 2014’s (volume) but because of the global volatility, then we don’t expect to hit that. Right now, it is about 50 percent lower. From Php190 billion (last year) to about right now we are doing Php77 billion,” he said in an interview Monday on the sidelines of the ASEAN Fixed Income Summit.

Crisol cited lingering worries over China’s economy, uncertainty about the United States Federal Reserve’s interest rate hike and European economic issues.

“Last year, they (issuers) basically pre-funded their requirements so it was a record year. Many of them already anticipated possible movements of the Federal Reserve that is why they borrowed a lot last year. This year, there is no pressure for them to issue additional (bonds),” he said.

Crisol expects four more listings during the last quarter of 2015 from the banking and conglomerate sectors.

He said the fixed income exchange also sees the value of listings increasing next year, mainly from infrastructure, tollways, power, water and construction sectors.

“Basing it on government program of infrastructure, there should be a demand by next year. As well as our economic growth signals expansion so we do foresee demand for capital next year. The X factor is of course the elections. The confidence factor will impact on investors,” he added.

Crisol said next year’s robust listing activities also depend on the country’s economic growth, inflation rate and the stability of Chinese and Euro-area economies as well as Fed’s interest rate decision. (PNA)