CEBU, Philippines - While about 70 percent of the local investors that currently participate in the stock market are from Luzon, the Philippine Stock Exchange (PSE) is hoping to increase its penetration in the regional market, starting off with the establishment of a satellite office in Cebu.
In an interview with PSE division head for capital market development division Leo Quinito, he said that since the opening of the PSE Cebu office late last year, more and more Cebuanos are now starting to appreciate in investing in the capital market.
PSE is also looking at establishing similar satellite offices in Mindanao in the next couple of months.
Since, the establishment of the PSE Satellite Office at the Insular Building on Cebu Business Park late last year, Quinito said it has attracted 250 new accounts.
Of the 505 thousand investors in the stock exchange, only about 2,500 accounts are coming from the Cebuano investors.
He hopes that in the next few months, more Cebuanos from across market segment, including the young generation, will see the benefits in putting their investments in the capital market.
Due to the good capital market environment in the Philippines, volumes of investors playing in the stock market in the Philippines grew by 32 percent, although he said PSE has yet to achieve its targeted level which is to convince the six million potential Filipinos who are earning above P30 thousand a month.
Of the 99 million Filipinos, only six million earn at least P30,000 a month. This group is one of the targets of the PSE to participate in the equity market, in order to build their wealth.
Currently, there are a total of 505 thousand investors in the stock market, about 95 percent of which are Filipinos, while five percent are foreign investors.
According to Quinito, the country’s good economic standing, should not be downplayed by Filipinos, as this development is grounded by the low interest rate regime, record inflation, improving governance, good performance of listed companies, and the influx of foreign investors to the country.
PSE is reiterating its call to all investors, across the market segments, that investing in the stock market is not only for the affluent and those who have money, but the more that the ordinary earners should take advantage of this high yielding investment instrument.
He said there is a need for Cebuanos to be further educated on the opportunities of investing into stocks. While the affluent market has already taken advantage of this wealth-building opportunity, Quinito said PSE is now looking at the mainstream market to get attracted into putting their hard-earned money in the equity market.
“Cebuanos are very conservative. They want to see something that is tangible. They [Cebuanos] still fearful in taking risks,” Quinito said. However, he added that with the agressive stance of PSE to promote equity market as a safe and high yielding investment channel, he expressed confidence that equity investments in Cebu will grow in a remarkable performance in the next few months.
The Philippine stock market is regarded as number three in the world, and top performer in Asia. This is because of its healthy growth path over the years, despite the threat of economic global economic fragility.
In 2011, average daily value turn-over at the exchange reached to an average of P4 billion a day. This year, average valued reached to P8 billion per day, and it could reach even as high as P16 billion. (FREEMAN)