Democratized opportunity

Democratized opportunity | Daily Tribune

The road to progress becomes smoother through shared commitments, as exemplified by the Philippine Stock Exchange’s aggressive effort to engage with other institutions to bring the capital market closer to ordinary Filipinos.

Daily Tribune is part of the endeavor as the broadsheet is among the bourse’s partners in its investor marketing campaign.

The PSE chose the DT’s Money page for its weekly PSE Corner which features stock market and listed company updates such as market reports, latest earnings results, financial data, and dividend payments.

The strategy is to make Filipinos aware of the capital markets enough for them to be rid of their apprehensions about investing in stocks, which are traditionally seen as risky and a playground only for the rich.

The goal is to have those with even the smallest savings invest in the stock market, thus widening the investor base and preventing the recurring dilemma of huge global funds dictating the rise and fall of the index.

Investment prospects have never been better.

In Daily Tribune’s Straight Talk interview, Philippine Stock Exchange president Ramon Monzon said the improvement in macroeconomic indicators will drive market activities this year.

The local economy is projected to lead the ASEAN region with the highest gross domestic product, or GDP, growth in 2024 at 6.2 percent against Vietnam’s six percent, Indonesia’s 5 percent, Malaysia’s 4.6 percent, Thailand’s 3.3 percent, and Singapore’s 2.5 percent, based on recent figures from the Asian Development Outlook.

The inflation rate was projected to decrease close to four percent from an average of 6.9 percent year-to-date as of the end of November 2023.

The market bellwether closed at 6,450.04 points at year’s end, down 1.8 percent from last year’s finish of 6,566.39 points.

For 2024, analysts project the PSEi to hit a range of 6,800 to 8,300 points. Expected rate cuts by the US Fed and the BSP, as well as the government’s aggressive spending on infrastructure projects and continued increase in foreign investment pledges, are what the PSE chief is banking on to stimulate consumption, generate job opportunities, and encourage additional investments.

Risks to the outlook remain the potential impact of higher transport charges, electricity rates, and rising oil prices.

The favorable economic backdrop means the environment is conducive for the stock market to soar.

Monzon, who is passionate about bringing the stock market to ordinary Filipinos, said the overriding goal of the bourse this year is to increase the number of listed companies and make investing in the stock market accessible to most of the population.

Under its Listing Engagement and Assistance Program, or LEAP, the PSE helps prospective listing applicants through guidance, advisory and information, access to pre-listing assessment, and connections to experienced advisors.

LEAP currently has 70 enrolled companies that Monzon said are predominantly family corporations considering being publicly listed but apprehensive or needing more knowledge of the capital market.

The PSE aims to remove the stigma of entering the bourse, make it a common investment option, and thus attract more companies to make an initial public offering or IPO.

Companies that lack a track record but have growth potential could also go public through a listing sponsor, according to Monzon.

The latest thrust in line with democratizing the stock market will use electronic wallets, which, combined with the push to reduce the so-called “board lot” share purchases, would allow even a P100 stock transaction.

From being a bellwether of the economy, the bourse may assume the role of a main engine for Filipino wealth.