Sunday, October 2, 2011

What Stocks Can You Buy for 5,000 Pesos at Philippine Stock Market?

There are two ways to buy stocks in the stock market. One is by buying through Oddlot and the other one is through Boardlot.
Boardlot – If you want to buy PLDT whose board lot is 5, the shares must be divisible by 5. Meaning, you can only buy PLDT shares at 5 shares or 10 shares or 15 shares or 20 shares or 25 shares and so on and so forth. You cannot buy PLDT at 4 shares or 6 shares or 9 shares or 12 shares because they are not divisible by 5.
Boardlot is also the minimum price you can buy for the stock. For example, the price of PLDT is 2,2994 pesos per stock as of today, since the boardlot is 5, the minimum price for PLDT is 11,470 pesos. In this case, if your money is 5,000 pesos only, you cannot but PLDT today.
Based on the 30 companies included in the Philippine Stock Index below, you cannot buy Globe, SM Investments and PLDT shares (yellow highlight) if your money is 5,000 pesos only. The good news is you can buy the rest of the companies with your 5,000 pesos.

SECURITY NAME SYM BOARD LOT  PRICES  Amount (Php) 

AYALA CORPORATION
 AC 10 300.8      3,008.00
ABOITIZ EQUITY VENTURES, INC. AEV 100 39.30      3,930.00
ALLIANCE GLOBAL GROUP, INC. AGI 100 10.14      1,014.00
AYALA LAND, INC. ALI 100 15.30      1,530.00
ABOITIZ POWER CORPORATION AP 100 30.00      3,000.00
BANCO DE ORO UNIBANK, INC. BDO 10 56.00         560.00
BELLE CORPORATION BEL 1000 4.02      4,020.00
BANK OF THE PHILIPPINE ISLANDS BPI 10 56.70         567.00
CEBU AIR, INC. CEB 10 79.90         799.00
DMCI HOLDINGS, INC. DMC 100 36.50      3,650.00
ENERGY DEVELOPMENT CORPORATION EDC 100 6.06         606.00
FIRST GEN CORPORATION FGEN 100 14.20      1,420.00
GLOBE TELECOM, INC. GLO 10 926.00      9,260.00
INTERNATIONAL CONTAINER TERMINAL SERVICES, INC. ICT 10 50.65         506.50
JOLLIBEE FOODS CORPORATION JFC 10 88.80         888.00
JG SUMMIT HOLDINGS, INC. JGS 100 23.80      2,380.00
METROPOLITAN BANK & TRUST CO. MBT 10 69.30         693.00
MEGAWORLD CORPORATION MEG 1000 1.85      1,850.00
MANILA ELECTRIC COMPANY MER 10 256.00      2,560.00
METRO PACIFIC INVESTMENTS CORPORATION MPI 1000 3.16      3,160.00
MANILA WATER COMPANY, INC. MWC 100 19.76      1,976.00
PHILE  MINING CORPORATION PX 100 23.75      2,375.00
ROBINSONS LAND CORPORATION RLC 100 12.16      1,216.00
SEMIRARA MINING CORPORATION SCC 10 207.40      2,074.00
SM INVESTMENTS CORPORATION SM 10 531.00      5,310.00
SAN MIGUEL CORPORATION SMC 10 122.00      1,220.00
SM DEVELOPMENT CORPORATION SMDC 100 8.44         844.00
SM PRIME HOLDINGS, INC. SMPH 100 12.20      1,220.00
PHILIPPINE LONG DISTANCE TELEPHONE COMPANY "Common" TEL 5 2,294.00    11,470.00
UNIVERSAL ROBINA CORPORATION URC 100 43.00      4,300.00


 Generally, investors and traders are buying stocks in boardlot tranches because they are easier to sell and trade.

Oddlot – if you want to buy 4 PLDT shares, you cannot do that because the price of PLDT which is 2,294 pessos is more than 1,000 pesos and it falls under the minimum board lot of 5 shares as you can see below. Boardlots are being determined by the current price of the stock. See below.  

Very few investors buy through oddlots. Stocks sold at boardlots are easier to sell than oddlot stocks.
My recommendation with your 5,000 pesos is you buy companies whose minimum board lot is less than 5,000 pesos. Based on the stocks listed above, you can choose 27 companies whose board lot amount is less than 5,000 pesos. Avoid oddlots purchases as much as possible because  they are a little bit hard to sell.
If stock price is 1000 pesos or moreBoard lot is 5
If stock price is between 50 and 1000 pesosBoard lot is 10
If stock price is between 5 and 50 pesosBoard lot is 100
If stock price is between 50 centavos and 5 pesosBoard lot is 1000
If stock price is between 5 centavos and 50 centavosBoard lot is 10,000
If stock price is between 1 centavos and 5 centavosBoard lot is 1,000,000

38 comments:

  1. Thank you for this blog. I'm in a dilemma right now, i hope you can help me weigh things over. I have 5,000php worth to invest, my question is: Shall i invest this into 1 company only or in 2 companies? I'm planning to invest for the long term( 5 or 10 years).

    Thank you very much!

    From,
    greenMango

    ReplyDelete
  2. with that amount, i suggest you invest it in 1 company only. then if you have some extra cash along the way and want to consider other stocks, you may do so.

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  3. how much would be probably in return for P5,000 for 5-10 years?

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  4. history tells us that the ave. return for the past 20 years is 14%. With regards to the future, NOBODY can predict how much will the returns be. But the past can give us a glimpse on what the future returns will be.

    ReplyDelete
  5. Sir Randy,

    Galing ng blog mo. Very informative and precise.
    Super noob here and i learned a lot.

    ReplyDelete
  6. hello

    I really don't have much idea about investing but got curious after reading your blog. I'm wondering how to start buying shares then? do i go to the company and ask or do they inform it publicly that they sell them? Lastly, what about the broker? is it necessary?

    thank you! ^^

    ReplyDelete
  7. Hi Sir Randy,

    I appreciate your blog. Thank you for that. I also want to know like Mr. Anonymous here, about what to do next.

    Thank you so much.

    ReplyDelete
  8. Vander8/Anon: yes, a broker is necessary. There are hundreds of brokers around.

    Personally,I prefer colfinancial.com because of the many features it has although i am not discounting in using other stockbrokers in the future. it's just that colfinancial.com is my first broker and i am satisfied with it.

    you can email them at helpdesk@citiseconline.com

    goodluck and happy investing

    ReplyDelete
  9. i don't know anything about investing. can u guide me? thanks.

    ReplyDelete
  10. Thanks for the reply Mr. Randz.

    I am planning this year. and I wish you all the best. Please visit and be a member also in my blog. http://www.630v.com

    Thanks.

    ReplyDelete
  11. good pm ijust want to ask from whom or where will i have my COL account number? i saw it in a sample deposit slip of some banks who's said to be partner of COL.

    ReplyDelete
  12. I think you are looking for the bank account number of COL and an over the counter payment. If that is the case, you will not need the bank account. Just like when you are paying your Meralco bills, you dont need the bank account number of Meralco, you just pay them and the bank will credit it to them under your name. If you notice, your COL account number is always required when paying over the counter so that they will know to whom they will credit the payment.

    https://www.colfinancial.com/ape/Final2/home/open_an_account.asp#fund_your_account

    ReplyDelete
  13. i am really curious and ever since i am reading different blogs and search for information regarding on how will i invest. i am an undergraduate customs student i plan to finish it next year also i really want and very interested about investing please help me Mr. randy i want my money to be profitable and not just go to nothing. please message me if you have time thank you so much angelieasiocamasis@gmail.com

    ReplyDelete
  14. Mr. Randy I tried different small business before but unfortunately it failed. i may say that there are times that i have extra money and realize that im wasting it. Now i am at the point of focusing on something that will profit me atleast in the future. I really don't know where to start, who do i talk to, where i can find it and what are the work around of this business? If it is not too complex for you, i am looking forward to know the 101 tips over email for a start. gr8termaster@yahoo.com

    have a great day...

    ReplyDelete
  15. PSE Academy (www.pseacademy.com.ph) provides a comprehensive, interactive, and practical web-based investor education for market participants, would-be equity investors, and the public in general. :)

    ReplyDelete
  16. @randy... is it ok to ask? what does it mean when you say "history tells us that the ave. return for the past 20 years is 14%."? the 14% you mean is monthly or annually? im confused.. anyway tnx...

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  17. tol may tanong lng ako pag ng invest ka ng 5k ubligado ba every month ka mag bayad 5k sa company na nag invest ka?

    ReplyDelete
    Replies
    1. no. hindi ka obligado ne every month magiinvest ka.

      Delete
  18. sir randy pede po ba paturo kung paano simulan mag invest at more tips din po can you pm me manahan328@gmail.com tnx im looking forward for that

    ReplyDelete
    Replies
    1. hi cent, my suggestion is you start reading books about stock market investment. then i think you can start investing with an amount of 5,000

      Delete
  19. sir i want to try investing sana in a dividend stocks anu po magandang company... if ever i chose a company san pwede bumili... thanks alot.i tried small businesses but it failed.. gusto ko matutunan ang dividend stocks.

    ReplyDelete
  20. Sir ask KO lang po if yung 5000 mo kailangan every month madagdagan mo? I want to try investing habang bata pa ako. Salamat. And paano mo mag invest?

    ReplyDelete
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  22. I would like to invest in globe how long would it take and how many percent is this monthly or yearly? Sorry im not good in marketing please help me thanks...

    Michael valdez

    ReplyDelete
  23. Thank you for sharing your insights. It is very informative and helpful. I might use this as inspiration for my projects. Keep it up! I’m looking forward to your updates.

    Best Trading Books

    ReplyDelete
  24. Sir randy,i have read all the converstion to your website.maraming salamat sa info.at gusto ko magenvest but no idea how to start.please kindly help me on how to start to envest stock market.tq my email:lettysd 69@gmail.com

    ReplyDelete
  25. This is best blog to know the basic knowledge for better trading.

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  27. saan po ba makontak yong mga legit na stockbroker
    gusto kung mginvest paano mgopen ng bank account.
    Gusto ko yong may dividend at Boardlot ko gustong bumili ng stocks. thanks

    ReplyDelete
  28. Pg mg invest ng ibat ibang company 5k din po ba?

    ReplyDelete
  29. This is a great inspiring .I am pretty much pleased with your good work. You put really very helpful information. I am looking to reading your next post.
    commodity advisory firm

    ReplyDelete
  30. I'm willing to buy stocks but how?

    ReplyDelete
  31. The stock market application is where stocks are bought and sold. It's not an actual location. In short, the stock market is the business where the trading happens.

    ReplyDelete