The Philippine Stock Exchange Index (PSEi) Is Rallying To Its Highest Level

The Philippine stock exchange had recently reaches to its ultimate high level at 4,756 as of January, 24, 2012. It is recorded as its all time high since its inception and may even extend its upward trend in the near future.  This scenario took place for several days starting the first trading day of the year.

One reason for this is the inclusion of PCOMP by foreign financial analysts and investors in the investment watchlist.  I have observed lots of rumors and verified news stating the good dynamics and financial stability of the Philippine economy.

Listed below are some of the good news confirming the sound financial fundamentals of the Philippine economy. The year of the dragon is really been an auspicious year in the Philippines in the field of investing and finance. To clearly understand the news-topics click on the link to read the full details of the aforementioned news.

"Strong dollar inflows will continue to support the value of the peso this year despite the volatilities in the financial markets stemming from the European debt problems, the Bangko Sentral said Friday."

http://www.manilastandardtoday.com/insi ... january/14

"The Philippines has the potential to become one of the top 10 countries that can greatly contribute to global growth within the decade, Goldman Sachs said.
According to the investment bank, the Philippines is among the N-11 [Next 11] economies that are likely to advance to the stage of “growth countries,” or nations that account for at least one percent of global gross domestic product.
The N-11 economies are Mexico, Korea, Indonesia, Turkey, Iran, Egypt, Nigeria, Bangladesh, Pakistan, Philippines and Vietnam."

http://business.inquirer.net/40029/phil ... wth-driver

"According to the Metrobank group, the economy can grow at a faster pace of 5 percent to 6 percent this year on the back of higher government spending and robust overseas Filipino workers remittances that help drive up consumption. Their upbeat projection includes an upgrade to “investment” credit rating for the country this year. The upbeat mood is driven by what it says are robust investment inflows, strong market appetite, lower borrowing cost, liquidity and faster-than-expected capacity to pay debt."

http://businessmirror.com.ph/home/opini ... -go-but-up

"The PSE Composite Index reaching a historic high close was absolutely predictable, almost inevitable. In fact, on December 14, 2011, I wrote that the market could reach 5,000 in 2012. That is only about 8 percent higher than where we are now. We can advance higher than that based on the domestic internals that are fueling this market rally."

http://businessmirror.com.ph/home/opini ... e-going-up

The December Stock Market Rally In The Philippines

History reveals that every December the trend in the sock market is in upward motion. This means that lots of investors put their money in the market.  They choose certain stocks especially the blue chips that could survive the daily volatility (ups and downs in stock prices) in the market. Most of the days during this month confirmed a bullish outlook that will prompt any investor to invest more to a stock that promotes growth to one’s portfolio.

Presently here in the Philippines starting last week of November until now, the mining sector is leading the rally in the Philippine Stock Market Index. Imagine one stock alone in this sector is trading almost a billion pesos daily in a recent 4-day trading period.  Analysts commented that this is already an overbought stock. If you had bought this stock last December 1 and sold it at its current price, today you have earned at least 17% of your total investment. That's more than enough on the interest earned from a time deposit. This happens in just 6 consecutive trading days. What’s more you could expect. Last January this year this particular issue just costs cents per share. At its current price level this is already more that five times of your capital. A million pesos invested with this company could easily become more than five million pesos, making the investor a multi millionaire in just eleven months.  That‘s just the cream if you have the best knowledge in this field of business.

As an ordinary investor, you can make a killing in this field if your financial advisor shares you some nuggets of insider tips. Maybe some financial experts just get mad on me if they caught me sharing this information in my blog. Truly this is purely  an example of insider information in the stock exchange.

Philippines: An Emerging Market In Asia

Recently, the battle between the Bull and Bear in the international market is in the state of rollercoaster making the bear already outweigthing its enemy. But for the sake of some enlightenment in the Philippine market status, please read on to the excerpted news below from CNBC posted a yahoo news:   

Invest in Philippines, the 'Dark Horse' of Asia: Expert

On Friday 18 November 2011, 8:26 SGT

As far as emerging markets go, the Philippines is seldom the choice investment destination, but one analyst says the Southeast Asian nation could well become the "dark horse" of the region, thanks to its favorable demographics and sound economic fundamentals.

The Philippine's "very robust and young population" presents a ready pool of talent, says Mark Matthews, Head of Research Asia at Bank Julius Baer. He expects the country's population of 93 million, around half of whom are below 20 years old, to more than double to 190 million by 2040.

With fertility rates declining in the West and in Asian countries like Japan, Korea and China, the Philippines will increasingly become an important source of immigrant labor, he added.

"And the interesting thing is 80 percent of them speak English," Matthews said. 

"Most people who speak English in third world countries, they don't want to go overseas to work in sort of manual labor. But the Filipinos have no problem doing it...and they are making three times as much as they are making back at home, and they are sending it back home."

The Philippines is already one of the world's biggest recipients of remittances - the fourth biggest in 2010 according to the World Bank - which account for a tenth of the country's gross national product. According to the country's central bank, monthly remittances hit a record high of $1.7 billion in September with total remittances for the year expected at $20 billion.

The country remains in an enviable position fiscal-wise. Last year, for the first time in history, the Philippines' gross international reserves eclipsed its external debt level, making it a "creditor" nation, according to a report by Bank Julius Baer. The country is expected to end the year with a record $76 billion in foreign reserves, which is part of the reason why ratings agency Fitch upgraded the country's credit rating to BB+ from BB in June, just one notch below investment grade and on par with Indonesia.

And with a debt-to-GDP ratio among the lowest in Asia at under 50 percent, the Philippines is one of the most under-geared countries in the world, which makes it a less risky bet for investors. "That means it will no longer be 'another domino' in times of crisis," the Bank Julius Baer noted.

Despite being one of the best performing stock markets in Asia this year, with gains of over 3 percent, compared to double-digit percentage losses in China, Japan and Singapore," Bank Julius Baer says the market is still attractive on a valuation basis.

"The market is not expensive on 14.5x 2011 and 12.5x 2012 P/E, versus an average over the past 15 years of 12.5x," the bank noted.

The bank is not alone in its bullish view of the Philippines. A recent survey by Bank of America-Merrill Lynch showed fund managers increasing their overweight position in the country, making it the third most preferred market, trailing China and Indonesia.

url source:

http://sg.finance.yahoo.com/news/Invest-in-Philippines-the-cnbc-1516318407.html

October 2011 Most Actively Traded Companies In The Philippine Composite Index

The list below enumerates the latest actively traded stock in the Philippine Stock Market Index. Most of the companies belongs to blue chips in the financial sector. This sector is seen to have bullish sustenance starting this time as the financial crises in Europe is being rescued already via their Europian Financial Stability Facility (EFSF) through the assistance of China confirmed last meeting of the 17-Euro member countries last October 26 ending the ailing 2-year long problem of Greece banking and financial woes. The world stock market is anticipated to have a bullish effect specially in the financial sector following the said event wherein the Philippines also benefited. Investors confidence in the stock market is starting to return back and that was already proven last Thursday's market scenario wherein the Dow Jones Industrial Index in the US advances more than 300 points which is the biggest advance this year so far. Analysts predicted that this will last up to December.

1. Philippine Long Distance Telephone
2. SM Investment Corporation
3. Alliance Global Group, Inc.
4. Metropolitan Banking & Trust Company
5. Lepanto Consolidated Mining
6. Ayala Land Inc.
7. Zeus Holdings Inc.
8. Banco de Oro Universal Bank
9. Energy Development Corporation
10. Megaworld Corporation
11. San Miguel Corp.
12. Ayala Corporation
13. Puregold Price Club, Inc.
14. SM Prime Holdings Inc.
15. International Container Terminal Services, Inc.

The Latest Crazy Ups and Downs in the Stock Market

This month of October is a very shaky moments for investors as the European market is still in the process of alleviating their financial stability. For one time the Dow Jones Industrial Index is up then down again which is said to be following an erratic roller coaster movements. These scenario is the basis why most of the time the Philippine stock market is following the tracks of the US and EU markets. Staying on the sidelines, the best stocks to buy now are those in line with food. Likewise it is also good to return to gold stocks now up to December since it is starting to indicate an upward motion thereby allowing us to profit from these latest trend..

Detailed Online Stock Trading Steps

Are you interested in how to participate in the stock market in the Philippines but don’t know how to start? Do you have a hard time contacting brokers? Well, you could always do stock trading and investing online! Let me give you some baby steps to the local Stock Market i.e., the Philippine Stocks Exchange.

How to Start In Online Stock Trading: 

1. Open an online account thru CITISEC or BPI Trade. In my 
    case, I have BPI Trade (www.bpitrade.com) but it’s good 
    to have both. Simply fill-up the online registration form 
    (BPI Trade) and PRINT it after. Please double check 
    your information that they are correct before printing.

2. The instructions are stated in their site but for your convenience, you have to 

    photocopy 2 Valid IDs (front and back). Example: GSIS, SSS, Passport, Voter’s ID, 

    Driver’s License, Company ID, PRC ID, etc.  

3. You must have an existing BPI Account whether ATM/Savings. If you don’t have 

    yet, open one at your nearest BPI bank in your area.

4. Submit the photocopied IDs and the printed BPI TRADE registration form to the 

    BPI branch where you opened your ATM/Savings account and tell the Customer

    Rep that you want to submit the requirements for BPI TRADE (online stock).

5. You will have to wait for about 5 to 7 business days for your BPI Trade account

    processing. They will also send you an email on the progress of your account 

    processing within the duration. So, please check you email regularly.

Voila! That’s how you get started in online stock trading thru BPI Trade.

Now, you have the account set-up already, what to do next?

1. Once you have the username and password initially given to you by BPI Trade, 

   you will be given a simple instruction to change your password but not your 

   username. So please do remember the username and password when you 

   registered to avoid such mess.

2. First time to view the BPI Trade page?

3. Let me elaborate the tabs:

     * Market Info- it displays the real-time market condition and that you could

        also refer it to PSE.

     * Stock Info- it is where you check the current real-time information of the stock

       of your choice. Just fill-in the stock symbol in the tab. It will display the 

       current price and all necessary information.

     * Quote Page- it displays your ten favorite stocks with their real-time 

        information.

     * Time & Sales- it displays the real time buying and selling transactions

        of your stock choice.

     * Most Active- it displays the most active stocks in the Philippine Stock Exchange.

     * Top Gain/Lose- it displays the top gainer/loser stocks real-time.

4. At the side tab:

    * Stocks (under trading)- this is where you buy and sell a particular stock of 

      your choice. Just fill in the   stock symbol, the number of shares you  

      want to buy or sell (if you have bought some shares already) and of 

      course the price you are willing to buy or sell.

Note: You have to make sure to put funds to your BPI trade account before you could make any transaction.

    * You could deposit your money for your BPI Trade account thru 

       over-the-counter to any BPI Branch or you may do an online 

       transfer from your online BPI ATM/Savings account direct to

       your BPI Trade account for convenience.

    * In case you sold your stocks, proceeds/sales will be credited to your 

       BPI Trade account but you have to transfer it to your BPI 

       ATM/Savings account thru online transfer only so you could 

       withdraw it. You can’t withdraw the funds in your BPI Trade account. 

       It has to be transferred.

Hope this helps!!! Good Luck to your online stock trading experience!

Stock Market Investment Terms

Here are some of the terms related to the business of investing. Knowing some of the terminology can help even the beginning trader successfully discuss investment philosophies as well. Listed below are stock market terms that will help you when speaking with someone else in the business:

Basic terms – These stock market terms reflect common ideas and descriptions that are used every day. Such stock market terms portray types of people and general stock market basics.

• Ask – This is the lowest price that a seller will accept when selling a stock.
• Bear – This refers to an investor who believes the stock market or a particular
          stock is declining. This is the opposite of a Bull.
• Bid – This is the highest price that a buyer is willing to pay for a stock.
• Broker – A person that buys or sells stocks, bonds, commodities and such
          in exchange for a fee which is called
          a commission.
• Bull – An investor who believes the whole
          market or one individual stock is
          going to increase in price. This is
          the opposite of a Bear.
• Dow Jones Industrial Average – This
          is a compilation of the 30 most
          traded blue chip stocks. This list
          is the most widely used for
          analyzing stock market indexes.
• NASDAQ – This is a stock exchange consisting primarily of technology
           companies.
• PSEi – Philippine Stock Exchange composite index; comprises of all publicly
          traded companies in the Philippines.
• Stock – This is the smallest measurable unit of ownership in a company. Shares
          fall into either the common or preferred categories; companies issue shares
          of stock in order to raise capital without borrowing money.

Investing terms – These words and phrases reflect stock market terms for
          various stock market strategies. These stock market terms are used
          to describe specific conditions or analysis.

• Blue Chip – This term describes a company with a history of strong earning,
          traditionally increasing dividends and an outstanding balance sheet. Blue
          Chip stocks include Phil. Long Distance Telephone, Jollibee Foods,
          San Miguel Corporation, Metropolitan Bank, Exxon-Mobile, Coca-
          Cola and Wal-Mart.
• Book Value - This is the value of a company if assets and common stock
          equity are added together and all liabilities are subtracted. There is
          little correlation between the book value and the market value. Book
          value is used in such fundamental analysis measurements as Price to
          Book ratio.
• Dividend – This is the portion of a company’s profit that is given back to
          the investors. Such payments are made on either an annual or quarterly
          basis.
• Fundamental Analysis – A method of predicting the behavior of a company’s
         stocks by looking at fundamental information about the company such as
         financial health, sales and earnings figures, and dividends. It is the means
         by which the investor can research the financial information that determines
         the strength or weakness of the company.
• Market Capitalization – A company's market capitalization, also known as
         its market cap, is calculated by taking the number of outstanding shares
         of stock multiplied by the current price per share.
• P/E Ratio – This widely used analysis tool of Price to Earnings ratio
         measures now you pay for each dollar of corporate earnings.
         For example, if you have $30 stocks that report a profit of
         $2 per share, your P/E ratio is 15; $30 per share divided by
         $2 earnings per share equals 15. In this ratio the lower the
         P/E ratio, the better.
• Spread: This stock market term reflects the difference between the
         Ask and the Bid.
• Technical Analysis – Using charts and charting techniques and
         indicators (such as prices, volume, moving averages, stochastics, etc.)
         to evaluate future likely price movement.
• Yield – This is the percentage of a dividend paid against the stock price.
         For example, if you receive a $3 dividend on a $30 per share stock,
         your yield is 10%.

Conclusion

It is much easier to discuss the stock market if you understand some of the basic stock market terms. There is a large variety of stock market terms and learning them will not only help in your conversations but also to better comprehend the tools available for technical analysis.