Ever since the Philippine Mining Act was upheld in 2005, which made it possible for mining companies to resume their activities as well as to allow for foreign ownership of mining companies in the Philippines, the Philippine Stock Exchange has started to boom.
Foreign capital flowed in to the listed mining companies in the Philippine Stock Exchange and this had the effect of renewed interest from the common folk to invest in the local bourse. Mining companies generally list in the stock exchange in order to gather funds for their capital intensive operations. Add to that the rising prices of metals in the world market due to the rapid expansion of the economy of China and India, definitely makes investing in mining companies a sound investment.
This was a much needed break for the stock trading industry which had been badly crippled by the Asian Financial Crisis of 1997. Slowly but steadily the local stock exchange index has started to regain its pre 1997 levels. This has been good not only to the stock market, but also to the the stock brokers and stock traders who earn their living via stock trading.
Some analysts believe that another reason for the renewed interest in the Philippine Stock Exchange is due to the weak dollar. Foreigners think that it would be better to invest in the local bourse because of the surging peso which is outperforming the other currencies in South East Asia.
Either way, what’s very sure is that stock investing has never been easier than it is today due to the advent of online stock brokers. To trade stocks online you will need a secure PC with an internet connection. Although it is Ok to trade using a PC in an internet cafe, it is suggested to use a more reputable cafe so that you can ensure that your connection is safe and that no keylogging softwares abound to log your transaction.
Some of the more popular online stock brokers in the Philippines are Citiseconline and BPITrade (Securities Arm of Bank of the Philippine Islands).
Almost anybody of legal age can apply for an account with an online stock brokage firm. With Citiseconline you will need to have a P25,000 deposit before you can start trading with them. BPItrade will require a depost of only 5000 but you need to have a BPI account and that it be registered with BPIexpressonline. Transaction fees imposed by online brokerage firms usually vary between firms but usually fall along the line of 0.25% of the value of shares being transacted.
Before jumping on the online stocktrading bandwagon, be sure to do your homework. Try to seek some advice with those who have already been long in the online stock trading game. If you need more advice during each trade, it might be better to just use a regular broker who you contact through the phone to place your buy and sell orders and who can offer you advice as to the stocks that you are buying.
You can also start out by practising with online trading simulators, similar to what Citiseconline offers, which lets you play stock investor without actually plucking in money.
There are also a lot of online sites such as Finance Manila and PinoyMoneyTalk that have a very active investor community and offer a lot of information on Philippine Stock Market Investing.
Stock trading is not for the feint of heart. At an instant you can double your income or lose it altogether. So whether you are trading for the long term or short term, it would be better to not invest any money that you have no fear in parting with.
Lastly, Stock Investing should be treated like a business. You are investing your hard earned money in hopes of getting a good return. So as with any business you should do your research as well as spend time managing the business.
My Dad once said that stock investing is legalized gambling because of overpriced stock prices of companies with not much value. If you did your homework and research on the company you are investing then it isn’t really gambling. And the other difference?, in gambling, when you lose, you lose. In stock investing you still have ownership in a devalued company. Which luckily could one day gain its value again.
PSE, Philippine Stock Exchange
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment