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

Friday, September 30, 2011

Top Ten Stocks Sold by Foreign Investors Sep 29, 2011

I got the list from PSE website under the Quotation Reports tab. Obviously, I painstakingly rearranged the stocks and their values just to get a clear idea on what stocks the foreigners are buying and selling for the day.
The amounts below are in pesos and it is the net value of the foreigners’ trade for the day. For example, Foreign Investor 1 sold 1 million pesos while foreign investor 2 bought 700,000 pesos. The 300,000 pesos difference is the net value of the foreigners’ trade for the day. This means that foreigners are dumping shares instead of accumulating.
I took the list of the top ten stocks sold by foreigners (foreigners’ net trade for the day). Here you go.
Name
Symbol
Foreign Selling Php
 INTL CONTAINER
 ICT
  (188,658,395.00)
 SAN MIGUEL CORP.
 SMC
  (185,244,724.00)
 ENERGY DEVT.
 EDC
     (83,595,923.00)
 PLDT
 TEL
     (71,937,210.00)
 SM INVESTMENTS
 SM
     (63,407,090.00)
 ABOITIZ  POWER
 AP
     (53,947,675.00)
 LEPANTO B
 LCB
     (40,008,870.00)
 ALLIANCE GLOBAL
 AGI
     (39,494,505.00)
 SEMIRARA MINING
 SCC
     (36,446,233.00)
 JOLLIBEE
 JFC
     (34,649,754.50)

The stock market is up today. So, maybe you wonder why these stocks are going up when in fact the foreign investors are dumping their shares.
Philippine stock market is now dominated by Filipinos. Majority of the investors are Filipinos.
Let us take a look at the amount of stocks that my beloved countrymen bought in these stocks. If you notice, the amounts of stocks bought by Filipinos are way more than the amount stocks sold by foreigners. Also, a theory can be made that while the foreigners are dumping their stocks today; Filipinos are accumulating them and piling up their investment on these stocks. The list below doesn't mean that these are the stocks being bought mostly by Filipinos. It is just a presentation of the top ten stocks sold by foreigners in comparison to the stocks bought by Filipinos.
Name
Symbol
Foreign Selling Php
Local Buying Php
Total Value
 INTL CONTAINER
 ICT
  (188,658,395.00)
     472,290,585.00
     283,632,190.00
 SAN MIGUEL CORP.
 SMC
  (185,244,724.00)
     460,653,809.00
     275,409,085.00
 ENERGY DEVT.
 EDC
     (83,595,923.00)
     260,859,073.00
     177,263,150.00
 PLDT
 TEL
     (71,937,210.00)
     446,303,070.00
     374,365,860.00
 SM INVESTMENTS
 SM
     (63,407,090.00)
     264,712,020.00
     201,304,930.00
 ABOITIZ  POWER
 AP
     (53,947,675.00)
     258,299,615.00
     204,351,940.00
 LEPANTO B
 LCB
     (40,008,870.00)
     175,261,500.00
     135,252,630.00
 ALLIANCE GLOBAL
 AGI
     (39,494,505.00)
     201,889,745.00
     162,395,240.00
 SEMIRARA MINING
 SCC
     (36,446,233.00)
     167,079,912.00
     130,633,679.00
 JOLLIBEE
 JFC
     (34,649,754.50)
     133,867,070.00
       99,217,315.50

The amount bought by Filipinos is my assumption. It is based on my calculation below. The value column below is the total traded value of the stock. In simple mathematics, total traded value less foreign traded value = local trade value.
Check the image below which I cut from the PSE reports. In the report, you will not see the value bought by Filipinos. Based on the available information, I needed to do some simple mathematics to get a “rough” idea on the bulk of the Filipino buyers.







Bottom-line:

We are the major movers of our stock market. Foreigners investments will affect our stock market but not in a big way.
I’ve been an OFW for more than five years now and imagine if other OFWs will follow suit in investing in stock market. Maybe just maybe, our stock market will be owned by Filipinos with 90% ownership of the trade being made. I’m optimistic about it, I am.
Sulong Pilipino!

Thursday, September 29, 2011

Philippine Stock Market Summary - Sep 29, 2011


The PSEi inched higher by 1.51 points or 0.04% to end at 3,877.63. The benchmark 
index fell by 60 points in the open before rallying midday in the session.  


Index gainers outnumbered losers 15 to 12, while 3 remained unchanged. The 
Financial Sector (+1.60%) was the strongest sub-index led by MBT (+4.20%), and 
BDO (+1.80%). Other significant gainers on Thursday included URC (+5.54%), MPI 
(+4.20%), and MEG (+4.03%). Meanwhile, the biggest losers were SMC (-2.56%), JFC 
(-2.44%), SM (-2.42%), and MWC (-2.32%). 


Value turnover slowed to Php5.18Bil from Php7.06Bil on Thursday. Foreigners 
continued its selling spree as they liquidated Php1.05Bil worth of shares.


via www.citiseconline.com

Exports decline 1.67% to US$4.4Bil in July

With exports totaling US$4.43Bil in July, the country’s trade deficit settled at US$570Mil for the period, bringing the year-to-date gap to US$6.31Bil.

We need to ram up the exports figures. China is beating everyone with it's low cost labor and thus a hot export driven country.

We need to do more to rebalance this trade deficit. Bring on the investors and ease up on doing business in the Philippines.

Red tape must be removed and other bottlenecks in our economy.

Sulong Pilipinas!




via Census

Wednesday, September 28, 2011

Philippine Stock Market Summary - Sep 28, 2011

The PSEi posted strong gains on Wednesday as it rose by154.9 points or 4.16% to close at 3,876.12.
After falling by 13.6% starting from last week, the benchmark index rallied as there were 25 gainers, 3 losers, and 2 unchanged issues in the latest trading session. The market rally was led by the Mining & Oil sector (+7.53%), and by the Holding Firm sector (+5.42%). Constituting the top five gainers were SM (+14.56%), PX (+10.18%), DMC (+8.87%), AGI (+6.65%) and SCC (+6.10%). On the other hand, the only losers were BEL (-3.64%), MPI (-2.96%), and MWC (-0.32%).

Value turnover increased to Php7.06Bil from Php5.28Bil on Wednesday. Foreigners were still net sellers as they liquidated Php699Mil worth of shares.


via www.citiseconline.com

Imports rise 6.6% to US$5Bil in July

The country’s merchandise imports in July expanded by 6.6% year-on-year to US$5Bil, matching the growth recorded during the previous month. However, imports of electronics and semiconductor, which represents almost one-fourth of total imports, contracted by 28.6% in July to US$1.17Bil amidst the weak global demand. Meanwhile, higher oil prices led to an 82.6% increase in inbound fuel shipments from US$ 719Mil last year to US$1.31Bil. With exports totaling US$4.43Bil in July, the country’s trade deficit settled at US$570Mil for the period, bringing the year-to-date gap to US$6.31Bil.



Figure 1a

via Census