Stock market boom to create lots of jobs — Campos
The country’s booming stock market is expected to help drive jobs growth in the months ahead, primarily by enabling publicly traded companies to raise additional capital for business expansion, Makati City second-district Rep. Luis Campos Jr. said on Sunday.
“Some of the nation’s largest listed firms will surely take advantage of the surging market to sell new shares either through rights offerings or private placements, so they can generate fresh funds for business expansion. And when businesses expand, new jobs are always created,” Campos said in a statement.
“Listed companies find it easier to offer extra shares for sale at a discount when stock prices are going up, and when there is great anticipation of prices rising further,” the deputy minority leader added.
Campos, husband of Makati Mayor Abigail Binay, made the statement shortly after two of the country’s largest lenders — Metropolitan Bank and Trust Co. (Metrobank) and Bank of the Philippine Islands (BPI) — announced plans to sell P60 billion and P50 billion worth of new common shares respectively via stock rights offerings.
The two banks bared their plans last week, just as the Philippine Stock Exchange (PSE) index hit a new record high of 8,969 points.
The PSE index is so far up another 4.1 percent or 257 points this year, closing Friday at 8,915 points. The index closed 2017 up 25.1 percent at 8,558 points.
Both Metrobank and BPI said they intend to use the proceeds from their rights offerings to build up their resources and step up their lending activities to businesses as well as consumers.