Roberto Juanchito Dispo, FMIC president said the timing for such investment is just appropriate, particularly for retail investors, as they anticipate market correction and may therefore be a good time to buy the index that will comprise the Index ETF.
ETFs are like mutual funds except that the shares will be listed and traded in the local bourse like any stock but instead of beating the index, it will track the performance of the Philippine Stock Exchange index (PSEi).
On Monday, First Metro Philippine Equity Exchange Traded Fund, sponsored and organized by FMIC
, signed key agreements with the PSE that will pave the way for the listing of the country's first ETF.
The First Metro ETF will have a P3-billion market capitalization but Dispo
said it may be raised to P10 billion as they believe it can be easily sold given the abundant liquidity in the market.
said that they plan to initially sell P750 million worth of shares at a price close to the par value of P100 apiece.
"We did a none-deal roadshow for the past two months, and we've seen very positive inquiries from both institutional and retail investors.
The timing is perfect, the flurry of initial public offerings (IPOs) will somehow sap up liquidity in the equities market and that may lead to a correction so values will be cheaper," Dispo