Author Topic: Only 1 percent of Philippine population Invests in Stocks (why? lack of info)  (Read 1047 times)

pioneer

  • To God be the glory alone
  • FOUNDER
  • GURU
  • *****
  • Posts: 18911
  • stay at home
    • View Profile
    • spiritual preparation
Published by Sun Star Cebu July 18, 2007
After reading this story, you may proceed to www.citiseconline.com

Cebu may be riding the wave of the country’s economic progress but majority of its investors have not fully utilized the benefits of investing in the stock market.

Online brokerage firm CitisecOnline.com Inc. (CitisecOnline) president and chief executive officer Conrado Bate said the bulk of Cebu’s economy is composed largely of small and medium enterprises, and only a few members of the local business community are trading in the stock market.

Among the company’s 3,000 customers, which generated P2.7 billion in investments, only 160 are from Visayas.

Bate echoed Philippine Stock Exchange (PSE) president and chief executive officer Francis Lim who earlier said that only one percent of more than 80 million Filipinos are actively investing in the stock market, mainly due to lack of information.

In the case of highly developed countries such as the United States, Australia and Hong Kong, more than 20 percent of the population traded directly and indirectly in the stock market, Bate said.

Untapped market

“The market of Cebu and the Visayas is largely untapped but we see the potential to grow our presence here,” Bate said.

He foresees the need for small-time Cebuano investors to capitalize on the bullish growth of the Philippine stock market brought about by robust growth of the local currency, a “more or less” stable political atmosphere and strong investor confidence in the economy.

A better alternative system is through online stock trading, Bate said.

As the number of Filipino Internet users increase, Bate said he is optimistic that interest in online trading will also pick up as was experienced in regional markets, like Hong Kong, South Korea and India.

“Online trading will revolutionize the way Filipinos invest in the stock market. It is a new market in itself,” he told a press conference Monday at the Cebu City Marriott Hotel.

Brokers do not only benefit from direct execution of trade but will have a comprehensive 24-hour access to accounts, including stock position and cash balances for a well-informed investment, seven days a week, Bate said.

“Improved Internet accessibility in the country has made participation in the stock market a lot more attractive to local investors. Online trading has allowed investors to place their orders at the price they desire and to be less dependent on a personal broker who can only process so many orders via telephone during peak hours,” he said.

CitisecOnline vice president Juanis Barredo said online trading has leveled the playing field between retail and the big-time stock traders.

He said retail investors are mostly being “left out” because brokers would have to take care of big-time clients.

Online trading, on the other hand, allows small-time investors to immediately trade stocks because all the information they need in making decisions are already posted on the website.

High returns

Bate said CitisecOnline charges .25 percent of the P25,000 initial capital investment for retail investors.

Students are likewise encouraged to participate starting with a P5,000 minimum investment.

He said unlike with the PSE index during the first half of the year when the return of investtment was at 21 percent, the average return for CitisecOnline clients stands at 27 percent. The firm’s average customer have at least P900,000 investment while small investors have P125,000.

He said money invested in the stock market made a return of more than $50 billion last year compared to $15 billion three years ago.


Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=2813.0
Romans 10:9
"That if you shall confess with your mouth the Lord Jesus, and shall believe in your heart that God has raised him from the dead, you shall be saved."
👇👇👇
Na-try mo na ba yung Tala app? Reliable sa unexpected expenses at laking tulong sa future! Use this code 9SO1TSL or visit www.tala.com to sign up!

unionbank online loan application low interest, credit card, easy and fast approval

Tags: