Investing in Philippine Stock Exchange (PSE)


Investors in shares listed on the Philippine Stock Exchange (PSE) rose 4.8 percent year-on-year in 2010, and the expectation is that this growth trend will carry on this year.  “Investor accounts grew by 4.8 percent to 498,838 in 2010 from 476,194 accounts the previous year," it said.

Of the total investor accounts, retail or individual accounts represented 474,002 or 95 percent, while institutional accounts or those held by corporations held the balance.  Local investors accounted for 98.5 percent while foreigners represented 1.5 percent of the accounts.  Local accounts increased 4.6 percent while foreign accounts grew 13.6 percent last year.
The PSE said foreign investors were more active participants in 2010, with 36.8 percent of them buying or selling stocks in the last 12 months. Only 23.9 percent of the local accounts were considered active.
It said individuals earning more than PhP1 million annually comprised 36.7 percent of the retail investors. Those earning PhP500,000 to PhP1 million in income accounted for 34.2 percent, while those earning less than PhP500,000 a year had a 29.1 percent share.
The PSE noted that most retail investors were in the services sector and were professionals.  Self-employed accounted for 17.2 percent of retail accounts.
About 78.3 percent of retail investors were based in Metro Manila. Those in other Luzon provinces accounted for 14.4 percent, while those based in Visayas and Mindanao had 4.3 percent and 1.8 percent shares, respectively.  Overseas Filipinos represented 1.2 percent of retail investors.
Among foreign retail investors, some 39.6 percent were Chinese while 19.3 percent were Americans.  Investors from other countries held the balance.