Showing posts with label Oddlot. Show all posts
Showing posts with label Oddlot. Show all posts

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