PSE bullish on hitting 1 million stock traders

CEBU, Philippines - The introduction of online-based trade exchange platform is expected to accelerate the target of the Philippine Stock Exchange (PSE) to hit the one million investors target to the country’s local bourse in the short term.

This confidence is backed up by the phenomenal growth of traders enrolled in online accounts and mobile apps.

Online stock exchange channels allow investors to play in the stock market anytime, and anywhere, said PSE assistant vice president John Benette B. Mamangun.

Mamangun, who is also the PSE head for corporate planning and investor relations division, said that with the 40 percent to 45 percent growth of the online stock market investors, hitting the 1 million mark is not difficult to achieve within the shorter span of time.

At present, PSE recorded over 700 thousand investors trading in the stock market, about 240 thousand are online investors trading through the online platforms offered by accredited broker companies.

There are a total of 23 online brokers registered in the PSE Tradex online platform. This channel has helped stock market investment in the Philippines easily accessible to the retail investors, and those from the regional areas, who are are still too intimidated to enter the traditional process of "playing" or making money in the stock market.

Mamangun confirmed earlier pronouncements of stock exchange brokers that the investors' demographic bracket now has expanded to the younger breed, saying PSE has seen tremendous growth of young people putting their investments in equities.

 Investors who are 18 to 35 years old are more comfortable of using the technology, versus the traditional method in investing in the stock market.

Of the over 700 thousand investors in the stock market now, about only five percent come from the Visayas. This leaves brokers and even the PSE put their high hopes for growth in the region.

Despite the aggressive efforts of PSE in promoting stock market investment to the mainstream market, only less than one percent of the Philippine population have participated in the capital market.

About 50 percent of PSE traders are Filipinos, while the other half are foreign stock market investors.

 Although the interest is very high among capital market savvy investors, PSE hopes that ordinary Filipinos, or even the monthly earner individuals will be able to appreciate the stock market as a way of building up their savings.

Mamangun was in Cebu recently to support FINEX's financial educational program for teachers or finance educators in Cebu. (FREEMAN)