PSE, the stock exchange operator in the country, has just declared an eight-peso (8.00) peso dividend. The dividend would translate to yield of 5.3% based on its the most recent stock price.
From a year ago, PSE is still down 9.56%. While COL Financial (COL), the online stock brokerage, is up 112.57% from a year ago. COL have risen to its current valuation at the back of the surge in online retail trading. COL is the leading stockbroker in terms of daily value turnover at the Philippine Stock Exchange.
PSE is similarly benefiting from the rise of the mom & pop traders. Just like COL, PSE is also an asset light business operating as a platform. In fact, its income has been less affected by the pandemic slowdown than that of COL. In the nine-month period of 2020 COL revenue is down 25% as compared to a similar period in 2019. While PSE revenue is down only 2.17% on a similar period.
As companies look to raise funds to recapitalize their balance sheet, the PSE might be the best venue for capital raising especially that listing requirements has been eased. Companies might raise equity rather than debt at these times, the pandemic could be a boon to PSE.
This analysis is an independent viewpoint on publicly traded stocks in the Philippine market. Accuretti Systems Inc. trades stocks in the Philippine market.
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