Philippine Stock Market Updates

Engr. Rich Magpantay/ April 15, 2017/ books/ 0 comments

Does investing in the STOCK MARKET scares you?

You should NOT!

Because nowadays, knowing how to invest in the Philippine stock market is now EASY as you can learn it by watching online via youtube or reading it in your friend’s post in facebook. But knowing how is not that essential, what is important is that you UNDERSTAND it well from a registered stock market expert.

That’s why I’m writing this article for you to appreciate the BENEFITS of investing in the stock market in our country!

HISTORY have shown that investing in the Philippine stock market offers higher returns compared to bank savings and can beat inflation rate. There are two ways to make your money grows in the stock market provided that you understand the basics of stock investing. First when the stocks you buy APPRECIATES and second when the stocks you bought declared CASH DIVIDENDS.

Recently Wilcon Depot, Inc. with stock symbol WLCON had its Initial Public Offering (IPO) last March 31, 2017 with opening price of PhP 5.05.

Did you know that there are 269 stocks you can choose from the Philippine stock market?

 

When did I start investing in the STOCK MARKET?

 

I have been investing in the Philippine stock market since 2010 and it really helps me a lot in terms of GROWING my money easily since I am aware of guaranteed interest in our savings in the bank and average inflation rate in our country.

At first, I started buying shares of the biggest corporations in the Philippines which are included in Philippine Stock Exchange Index (PSEi). The PSEi is composed of 30 stocks which carefully selected to represent the general performance of the Philippine stock market and most of it considered to be BLUE CHIPS.  These are the list of PSEi stocks as of April 12, 2017 with corresponding market price and minimum shares.

# Stock Symbol Corporation Name Market Capitalization (Philippine Peso) Market Price Minimum Shares
1 AC Ayala Corporation 532,893,403,209.00 857.00 10
2 AEV Aboitiz Equity Ventures, Inc. 424,224,579,542.10 75.50 10
3 AGI Alliance Global Group, Inc. 142,339,815,788.94 14.32 100
4 ALI Ayala Land, Inc. 520,828,963,615.20 35.00 100
5 AP Aboitiz Power Corporation 305,382,078,740.50 42.00 100
6 BDO BDO Unibank, Inc. 526,243,804,129.50 121.00 10
7 BPI Bank of the Philippine Islands 411,768,673,186.40 105.00 10
8 DMC DMCI Holdings, Inc. 159,595,189,400.00 12.16 100
9 EDC Energy Development Corporation 113,546,280,600.00 6.12 100
10 FGEN First Gen Corporation 78,527,239,297.65 20.95 100
11 GLO Globe Telecom, Inc. 275,838,711,356.00 2,058.00 5
12 GTCAP GT Capital Holdings, Inc. 221,186,700,000.00 1,275.00 5
13 ICT International Container Terminal Services, Inc. 182,662,709,755.75 90.00 10
14 JFC Jollibee Foods Corporation 223,561,023,319.20 208.80 10
15 JGS JG Summit Holdings, Inc. 573,027,332,560.00 81.45 10
16 LTG LT Group, Inc. 168,813,666,668.40 15.50 100
17 MBT Metropolitan Bank and Trust Company 275,084,945,989.00 84.50 10
18 MEG Megaworld Corporation 127,668,205,653.12 4.05 1000
19 MER Manila Electric Company 318,743,513,774.00 284.00 10
20 MPI Metro Pacific Investments Corporation 203,516,994,737.92 6.48 100
21 PCOR Petron Corporation 84,844,695,697.85 9.25 100
22 PGOLD Puregold Price Club, Inc 116,284,288,122.30 42.20 100
23 RLC Robinsons Land Corporation 105,825,523,207.25 25.85 100
24 SCC Semirara Mining and Power Corporation 162,988,823,790.00 151.50 10
25 SECB Security Bank Corporation 160,503,782,931.00 217.00 10
26 SM SM Investments Corporation 870,913,412,841.00 719.00 10
27 SMC San Miguel Corporation 256,880,697,624.00 107.80 10
28 SMPH SM Prime Holdings, Inc. 851,937,334,973.00 30.20 100
29 TEL PLDT, Inc. 382,418,721,750.00 1,780.00 5
30 URC Universal Robina Corporation 379,115,841,296.00 174.00 10
  • Source: edge.pse.com.ph

Did you know that the 30 stocks composition of the PSEi changes every six (6) months? 

 

How much do I need to invest in the STOCK MARKET?

 

Investing directly in the Philippine stock market is now AFFORDABLE since PhP 5,000 is all you need to open an account with one of the 21 ONLINE STOCK BROKERS who are members of Philippine Stock Exchange, Inc. and registered at Securities and Exchange Commission.

 

After opening an account with the online stock brokers then you may buy shares of the 269 listed stocks. But for beginner, start first with the 30 blue chip stocks listed above.

Let us assume that you are able to buy shares of Jollibee Foods Corporation with stock symbol of JFC which have a market price of PhP 109.00 that was 5 years ago and have a minimum board lot or shares of 10.

The buying transaction cost as follows:

  • Gross Transaction Amount : 10 shares X PhP 109.00 = PhP 1,090.00
  • Plus Broker’s Commission: 0.25% X PhP 1,090.00 = PhP 2.73 or PhP 20 whichever is higher
  • Plus VAT on Broker’s Commission: 12% X PhP 20 = PhP 2.40
  • Plus PSE Fee: 0.01% X PhP 1,090.00= PhP 0.109
  • Plus SCCP Transaction Fee: 0.005% X PhP 1,090.00 = PhP 0.05045
  • TOTAL BUYING TRANSACTION COST: PhP 1,112.56

In order to buy 10 shares of JFC at PhP 109.00 market price, you will just only need PhP 1,112.56.

Now that the market price of JFC is at PhP 208.80 and you may want to sell it, these will be the computations:

  • Gross Transaction Amount: 10 shares X PhP 208.80 = PhP 2,088.00
  • Less Broker’s Commission: 0.25% X PhP 2,088.00 = PhP 5.22 or PhP 20 whichever is higher
  • Less VAT on Broker’s Commission: 12% X PhP 20.00 = PhP 2.40
  • Less PSE Fee: 0.01% X PhP 2,088.00= PhP 0.2088
  • Less SCCP Transaction Fee: 0.005% X PhP PhP 2,088.00 = PhP 0.1044
  • Less Transaction Sales Tax: 0.50% X PhP 2,088.00 = PhP 10.44
  • TOTAL PROCEEDS FROM SELLING TRANSACTION: PhP 2,054.85

The total amount you will receive for selling 10 shares of JFC is P2,054.85.

Don’t worry about the buying and selling transaction fees, it is computed automatically by the online stock broker’s platform. In order to minimize the transaction fees, it is good to know that a minimum of PhP 8,000 per trade per stock is a must!

Your initial investment of PhP 1,112.56 appreciates to PhP 2,054.85 if you are able to buy 10 shares of JFC 5 years ago and sell it as of writing. That is 85% growth in a span of 5 years or 17% yearly if you have knowledge, time and money to learn more about the fundamental and technical analysis.

During the last 5 years also, JFC gives a total cash dividends of PhP 9.21 which is additional of PhP 92.10 to your online portfolio since you have only 10 shares.

  • Source: performance.morningstar.com

The cash dividends might small but imagine if you have 1 million shares of JFC and the amount of cash dividends will be equivalent to PhP 9.21 million and value of your investment will be PhP 208.8 millions!

If you find it difficult to trade directly in the Philippine stock market, just simply invest through EQUITY MUTUAL FUND if you are first time to learn about it.

The good thing about Equity Mutual Fund is that you have a Fund Manager that carefully select the top 10 BLUE CHIPS and becomes affordable to investors since PhP 5,000 also is a great start for those people who have limited knowledge, time and money.

Did you know that your money can grow about 10% per year in equity mutual fund?

Photo credit to rappler.com, pinoyandmoney.com, foodevolution.com.ph, bloomberg.com

About Engr. Rich Magpantay

Engr. Rich Magpantay, ECE, CIS, is a Certified Investment Solicitor of Philam Asset Management, Inc. (PAMI), the premier mutual fund company in the Philippines. He is also an active seafarer and book author of 5 best reading personal finance books and have been awarded as OFW Advocate of the Year 2016 by Angat Pilipinas Financial Literacy.

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