Cebuanos urged to invest in the upbeat stock market

CEBU, Philippines -  Although there is a slight growth in the number of Cebuanos participating in the stock market, an investment consultant continues to encourage more to invest taking into account the present and continued “boom” in the Philippine stock industry. 

Ernest Evangelista, chief investment officer of Wealth Securities, Inc., observed that with the three-year stock market boom, more Cebuanos are opening up accounts and the level of participation among Filipinos has relatively grown.

He cited, however, that those who are involved in the stock market are still less than 5% of the total population.

The Philippine Stock Exchange Index (PSEi) reached its highest level in 2012 and closed the year at 5,812.7.

It represented a 33-percent growth from the 2011 closing level and ranked as second to Thailand among other stock markets.

As the market opened this year, it has grown almost four percentage points on the fourth trading day.

Also, it was last year that the stock market was able to raise capital at P219 billion which was higher at 104% compared in 2011.

Evangelista added that the bullishness of the market should make investors more cautious and prudent, pointing out that greed is the market’s “fiercest” enemy.

He reminded investors not to consider the stock market as a gambling den.

“Every time the market breaches a resistance point, a lot of investors feel restless thinking up to where will the upside go.  However as the technicians would say, there could be points of resistance but there's no such thing as the highest price,” he said.

He also believed that bear or low period is the ideal time to get into the market for starters but said that “only a few were brave to test the waters and indeed they are fortune-favoured for they are now reaping the rewards.”

He further urged Filipinos to shift into saving culture for them to build wealth through passive income and invest in the stock market.

“It is not late yet to invest in the market even if the index had breached several highs because stocks market prices don't go up at the same time, there are always the "right picks",” Evangelista stated.

He described stock investment as a viable financial instrument with its liquidity, high returns, manageable risks and forthcoming investment upgrades.

He also emphasized that the stock market is not “only for the rich” since one can start trading stocks with a minimum amount from P3,000 to P5,000

Investments then grow in the stock market through dividend pay-outs such as cash, stock and property, stock rights and capital appreciation.

Evangelista added that one can invest indirectly in a mutual fund and that equities portfolio should be part of one’s investment vehicle.

The average Philippine inflation rate for the past five years is recorded at 5.5% while the PSEi average growth for the same period is at 15.6%. (FREEMAN)