Philippines Equities

The Philippines, a Southeast Asian country spread out over 7,000 islands, is one of the fastest growing economies in Asia. Philippine equities have been outperforming many emerging markets. Against the backdrop of an economy poised to register GDP growth on par with China in 2015, Philippine stocks are still trading at a discount as the economy moves out of the recovery phase, making it a good time to bargain hunt. Investors have a window to buy stocks trading below their fair market value.

Getting Started With Investing in Philippines Shares

The Philippines Stock Exchange (PSE) was formed in 1994 from the merging of two older exchanges. Numerous brokers and online brokers are qualified to trade on the exchange. The PSE has experienced high volatility lately. Like other global exchanges, it has experienced several corrections in 2015 triggered by Chinese market crashes. On one day in November, share prices swooned 6%. China is a large consumer of goods from the Philippines intermediate goods producers. As recently demonstrated, stock market performance is affected by the strength of the Chinese economy.

Savvy investors are getting to know the market before jumping in. Virtual stock trading games are becoming popular in the Philippines.  StocksPH and the Philippines Stock Exchange game let you test out your trading strategies in advance. The games give you a $100k in virtual money to practice trading on a virtual PSE. Players can see and emulate the trading strategies of the most successful stock investors in Philippines shares.

What You Need To Know About a Market Meltdown

How the Philippines Stock Exchange Works

The Philippines Stock Exchange (PSE) has two trading floors and also operates as an automated exchange. Most individual investors trade through an online broker today. The industrial, and mining and oil sectors have the largest representation on the market. The value of the Philippines equities market is increasing rapidly. The market capitalization of the PSE is 21 trillion Philippine pesos.

The Philippines best asset is its educated, rising middle class who trade stocks on their smartphones. They are forming large, influential online trading communities to trade investing ideas. The largest trading hub Finance Manila provides a good overview of what is happening on the PSE at a glance – top gainers, top losers, percent advancing/declining, and so on. It also provides charting tools and real-time price quotes.

Major Indices for Philippines Stocks

The PSE Composite Index (PSEi) replicates the performance of 30 companies that trade on the PSE. In addition, there are six sector indexes. The iShares MSCI Philippines ETF replicates the performance of large cap stocks trading on the PSE.

What to Look Out for When Investing in Philippines Shares

The Philippines is an intermediate goods supplier to China. As such, its economy is sensitive to any slowdown in the Chinese economy. China’s slowdown can explain the negative performance in the industrial and resource sector stocks on the PSE in 2015. Investors should keep their eye on the long-term view. Despite the economic slowdown by one of its largest trading partners, the Philippines economy continues to show strong growth. The current market provides opportunities to invest in strong companies with a history of selling into robust markets such as China’s. These stocks are poised to bounce back nicely when growth stabilises.

Safe Vehicles for Volatile Emerging Markets – ETFs, ADRs and Indexes

The New Savvy: Stock Markets

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C.E.O @ The New Savvy
Anna Haotanto is passionate about finance, education, women empowerment and children’s issues. Anna has been featured in CNBC, Forbes, The Straits Times, Business Insider, INC and The Peak Singapore. She was nominated and selected for FORTUNE Most Powerful Women conference in 2016 (Asia) and 2015 (San Francisco, Next Gen). Anna has 10 years of experience in the financial sector and is currently a Director in Tera Capital. Her previous work experience includes positions at Citigroup, United Overseas Bank, a regional role in Business Monitor and a boutique private equity firm based in Shanghai. She graduated from Singapore Management University (Finance and Quantitative Finance).