Pandemic prompts Filipinos to trade stocks

Average daily number of transactions in 2020 jumps 33.7%, while retail participation increases 47.8%

More Filipinos have started participating in the stock market as the coronavirus pandemic forced people to work from home, according to the latest data from the Philippine Stock Exchange (PSE).

The average daily number of transactions in 2020 jumped 33.7%, while retail participation jumped 47.8%.

Online accounts increased 19.7% to 936,000, while non-online accounts increased 3.3% to 460,553. This means that 67% of total trading accounts are online accounts.

“The preference for opening accounts online continues to increase since technology has made investing more accessible to investors,” said PSE President and CEO Ramon Monzon.

The surge in stock market activity came as lockdowns wiped out more than $ 1 trillion in market value in 2020, tripping multiple circuit breakers.

Total stock market accounts increased by 13.7% in 2020 to nearly 1.4 million from 1.2 million in 2019.

Retail investors held almost all accounts at nearly 1.4 million or 97.9% of total stock accounts, while institutional investors held 2.1% or 29,898 accounts.

Local investors accounted for 1.4 million or 98.5% of total stock market accounts compared to 21,233 foreign investor accounts.

By age group, investors aged 30 to 44 held 45.6% of stock market accounts. They are followed by investors aged 18 to 29 at 22.5%, then those in the age groups 45 to 59 as well as 60 and over at 19.8% and 12.1% respectively.

Retail investors earning less than 500,000 pesos per year accounted for 61.2% of stock account holders, while 21.6% of retail accounts were owned by those with annual income between 500,000 pesos and 1 million. pesos.

Investors with annual income above 1 million pesos accounted for 17.2% of retail investors.

Domestic investors were largely based in Metro Manila at 75.7%, followed by Luzon at 13.5% and then Visayas at 5.7%, while Mindanao accounted for just 3.4%.

The top five nationalities of foreign investors were Chinese, Japanese, American, British and Korean. –

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