According to the Philippine Stock Exchange (PSE) report based on the 2015 movement of stocks, investors, and trades, the stock market accounts’ growth was driven by the larger number of stock market investors through online access.
The Growth of the Stock Market in the Philippines
The PSE stock market accounts grew by 27.8 percent and equated to a total number of 302,516 from 236,669 in the year 2015. The said accounts’ growth was through online and traditional accounts, which increased to 8.5 percent. This amounts to a total of 712,549 accounts in the year 2015, as compared to the 773,187 accounts by the end of 2016.
Ramon S. Monzon, the President and CEO of PSE, said that technology was the main secret for the reported growth of stock market investors’ accounts. The organization was pleased to know that many Filipinos have adopted trading through online. Furthermore, it was also mentioned that people were more keen on investing in the stock market’s platform.
All in all, the total number of stock market accounts has 759,952 local investors. This number equates to 98.2 percent while 1.8 percent or the 13,595 are from foreign investors.
Demographics of Retail Investors
Retail investors who traded using online or traditional means comprised 43.7 percent of the total number of stock market investors’ accounts. These investors earned less than P500,000 per annum. Also, 31.1 percent were the investors who had an annual income of above P1 million, and the 25.2 percent were the ones who earned an annual income between P500,000 to P1 million.
Forty percent of investors were in the age bracket of 30 to 44 years old, while 26.4 percent fell on the 45 to 59-year old age range. Moreover, 19.3 percent belonged to the older group of 60 years and above, while the millennials whose ages were between 18 to 29 fell on 14.8 percent of the total number of investors.
A 96.1 percent total of retail shareholders were based in the Philippines, while the rest were from overseas.
The Younger, The Better
In terms of the stock market investors’ age bracket, the PSE was very pleased to know that millennials were already looking into their long-term goals. Among the online investors that built the 21.7 percent of the traders were young millennials whose age bracket was from 18 to 29 years old.
Even those who had lesser income tried to invest in the stock market because it was affordable. These millennials were after the potential of increasing their money in the future.
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