“The combined net incomes of listed companies in the first three months of 2011 decreased by 22.6% to P106.98 billion from P138.21 billion in the same period last year,” the Philippine Stock Exchange (PSE) said in a statement on Tuesday.

But combined revenues of the listed firms grew by a tenth to P857.78 billion from P779.8 billion in the same period last year.

“The first quarter earnings of our listed firms reflected the slower growth of our economy after coming from an election year and dealing with tighter government spending,” PSE President and Chief Executive Hans B. Sicat said in the same statement.

“It appears that this is also a consolidation phase similar to what our market experienced after a phenomenal run last year,” he added.

The data in the study were gathered from the first quarter financial statements of 228 out of 247 domestic listed firms, which submitted their reports to the PSE.

“Despite the early results, investors remain upbeat on the prospects of our listed companies as evidenced by the [PSE index (PSEi)] hitting a new record high,” Mr. Sicat said.

The PSEi — a basket of 30 stocks regarded as the benchmark of the market’s overall performance — posted another record high today as investors shrugged off worrying news from Europe and the United States.

“Hopefully, our firms’ second quarter corporate earnings, which should be released between this month and the next, will be able to validate this renewed confidence,” Mr. Sicat added.

The PSE, which manages the country’s only stock exchange, has 249 listed companies and 134 active trading participants. — Neil Jerome C. Morales