PSE Maintains Confidence as Company Delistings Continue
A company leaving the stock exchange often attracts
attention, but according to Philippine Stock Exchange (PSE) president and CEO
Ramon Monzon, delistings should not automatically be viewed as a sign of
weakness. Instead, they are part of how capital markets naturally develop as
businesses adjust their financing strategies and long-term objectives.
Monzon acknowledged that every delisting is disappointing
because the exchange naturally aims to retain its listed companies.
Nevertheless, he emphasized that departures are an expected feature of any
mature financial market rather than evidence that the exchange is losing
relevance.
Over the past decade, beginning in 2016, 15 companies have
voluntarily exited the Philippine Stock Exchange. Among them are Republic
Cement & Building Materials Inc., Splash Corp., Liberty Telecoms Holdings
Inc., Energy Development Corp., Travellers International Hotel Group Inc.,
Pepsi-Cola Products Philippines Inc., Eagle Cement Corp., 2GO Group Inc., Metro
Pacific Investments Corp., Holcim Philippines Inc., Premium Leisure Corp., SFA
Semicon Philippines Corp., Keppel Philippines Holdings Inc., 8990 Holdings
Inc., and Asian Terminals Inc.
Viewed in isolation, these departures may appear
significant. However, market performance becomes clearer when compared with
neighboring exchanges across Southeast Asia.
According to Monzon, Singapore recorded 27 delistings in
2025, equivalent to around 4 percent of its listed companies. Indonesia removed
15 companies, representing roughly 1.6 percent of its market, while Thailand
recorded 13 delistings. The Philippines, by comparison, had only three
companies leave the exchange during the same period. With approximately 282
listed firms, that represented slightly more than 1 percent of the market.
The three companies removed from the PSE in 2025 were Keppel
Philippines Holdings and 8990 Holdings through voluntary delisting, while
Philab Holdings Corp. was removed involuntarily.
The trend has continued into 2026. As of May, Singapore had
already recorded 11 delistings, Thailand had two, and the Philippines had one,
with Asian Terminals completing its exit.
More departures are also on the horizon. Robinsons Retail
Holdings Inc. has requested voluntary delisting effective July 28, 2026, while
MerryMart Consumer Corp. plans to leave the exchange as part of its integration
into the DoubleDragon Group.
For Monzon, these movements illustrate the constant cycle of
public markets. Companies enter the exchange to raise capital and expand their
businesses, while others eventually conclude that remaining publicly listed no
longer aligns with their corporate strategy. It resembles the changing
composition of a city's skyline, where new buildings continue to rise even as
older structures are replaced. The overall landscape continues to evolve rather
than simply shrink.
His focus, therefore, extends beyond preventing delistings.
He believes the greater responsibility of the exchange is to maintain reliable
market infrastructure and ensure that listed companies receive fair regulatory
treatment. A healthy marketplace depends not only on attracting new listings
but also on providing an environment where businesses can efficiently access
capital.
China Bank Capital Corp. Managing Director Juan Paolo Colet
pointed to several structural reasons behind the increasing number of
delistings. Companies today have access to a broader range of financing options
outside the stock market, reducing their reliance on public equity. In
addition, undervalued share prices and limited trading liquidity can make
remaining publicly listed less attractive.
Colet also noted that this phenomenon is far from unique to
the Philippines. Similar patterns have emerged in financial centers such as
Singapore, Hong Kong, and London, suggesting that delistings are part of
broader global market dynamics rather than an isolated domestic issue.
Monzon also addressed speculation surrounding the
possibility of International Container Terminal Services Inc. (ICTSI)
eventually leaving the exchange. He dismissed the rumors, saying he had
received no indication from ICTSI chairman Enrique Razon Jr. that such a move
was being considered.
Instead, Monzon said he has been closely watching ICTSI's
market performance for a different reason. He expects the company could become
the first listed Philippine firm to reach a market capitalization of P2
trillion, a milestone that would represent a significant achievement for the
local capital market.
Even so, he admitted that losing the country's largest
listed company would have enormous consequences. Such an event would affect not
only the Philippine Stock Exchange but also investor confidence, given that the
stock market serves as an important reflection of the broader economy.
While every company that exits the exchange is a loss, Monzon believes the overall picture remains balanced. Businesses will continue to leave as others prepare to take their place. The long-term strength of the Philippine capital market, he argues, depends less on the number of delistings and more on its ability to attract new issuers, maintain investor confidence, and provide an efficient platform for raising capital.
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