Stockbroker urges public to invest in stock

CEBU, Philippines - People who have extra money willing to grow it over time and make wealth should take advantage of investing in the country’s robust stock market, a stockbroking expert has suggested.

The young people, in particular, must be educated on how they can grow their hard earned money through buying a share of stock to be able to participate in the equities market, said Michaelangelo R. Oyson, chief executive officer and managing director of BPI Securities Corporation.

Although many would say investing in stocks is a very risky endeavor, Oyson said potential individual investors must understand the opportunities in the industry especially that the market is so far doing so well.

"Every Filipino should take advantage of the robust stock market," the CEO told reporters during Monday’s opening of BPI Trade office in Cebu. "This strong economic growth and bull market will stay for some time."

BPItrade.com, BPI Securities’ online trading platform, has announced to go outside the nation’s capital and encourage more financially savvy people in the Visayas and Mindanao to take interest in the direct equity investments.

He said the presence of BPI Trade in Cebu, which he described as the biggest economic center outside the Metro Manila, would invite local investors to stock trading and eventually awareness rate of most Filipinos on such investment instrument.

BPI Securities, the stock brockerage arm of BPI Capital Corp., works on buying and selling of shares of publicy listed companies in the Philippines.

"There’s really a need to reach out to many investors because the penetration rate in the Philippines in terms of investing is very low," he said, citing that many foreign investors wonder why individuals in the nation are not keen on this.

Lack of knowledge is the problem, according to Lawyer Roel A. Refran, senior vice president and chief operating officer of the Philippine Stock Exchange.

He said investing as a concept in general should already be considered as a subject in schools: "We need to cultivate this in the educational system."

The COO said that now is the best time to invest given the pullback of the market which draws the attention of ASEAN investors, eyeing to become participants of the PSE.

He also mentioned the exchange-traded fund as one of the newest products of national stock exchange which give players another investment choice. ETF is an investment fund traded on the stock exchange and has assets such as stocks, commodities or bonds.

The BPI official believes that the 2015 ASEAN economic integration would pose effects to the country’s capital market, citing while there are companies that would benefit in the liberalized market some would surely expect losses.

"All I can say is that there are companies that have positioned themselves properly already to be ready for the ASEAN market."

Moreover, he said the emerging middle class and continuous urbanization are key drivers of the investment "thesis".

Oyson has also advised stock investors to know things they need to be concerned such as the volatility of the market, the socio-political risk, natural calamities and U.S. market’s state, saying anything that happens in the foreign country affects the performance of the nation’s equities market.

"We all know there would be presidential election in 2016 and foreign investors are watching for it," he further added. "And the calamities can also affect the market."

The Philippines’ GDP grew 5.7percent in the first quarter of 2014, lower than expected as major disasters hit the country last year. Despite this, Oyson expressed confidence that the GDP will grow by more than 6 percent in the next quarter.

"We’re still experiencing a bull market and we’re in the middle of the economic super-cycle," Oyson said, adding the four industries driving the growth: business process outsourcing, tourism, OFW remittances and foreign direct investments.

The tendency for the the stock to experience a bear market when prices of securities are falling should never scare investors, he added, but instead advised them to choose a good and right company. A company that has a good brand and management and balance sheet.

He further advised them to think of the stocks as a long-term growth investment and should position themselves to be risk-taker.

He said, "If you want to change your wallet from poor to rich, you have to change first your mindset from poor to rich.