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What to Know About Stock Trading

 

 

Contents

1. How can you make stock trading fit your daily routine? 700 words

To engage in the financial markets, traders buy and sell stock, futures, forex, and other securities and close out positions. The goal is to make tiny, recurring profits. In the same way that there are several types of investors, there are various types of traders, from the little, independent trader working from home to the institutional player who moves shares and contracts worth tens or hundreds of millions of dollars each trading session.

 

I could incorporate stock trading into my everyday schedule, even as a student. A daily schedule aids in keeping me focused on my tasks rather than allowing distractions to take over. Thanks to a daily routine and a pre-trade checklist, I stay on track with my trading plan, a written plan for entering, exiting, and managing transactions.

 

These are the steps that I could incorporate into my daily routine:

  • Wake-up time.

6:00 Rise, bathroom, shower, water. 

  • Deep breathing, a clear mind, meditation.

6:45 Deep breathing, clear mind. Reinforce that it is my trading time right now. Other tasks can wait until the designated times in the routine or until free time. I could negotiate small parts during this time to ensure I have no claims in conflict with the broker. I could also reinforce the plan that I have no expectations for today except to follow my dream and take what the market offers.

  • Review daily routine.

7:00 Examine the daily trade schedule (have it typed out or cleanly written by my desk). Take careful note of each task. Say each one, and I’ll explain the procedure and the allotted time. I will still follow my habit even though I am aware of it.

  • Review the trading plan and re-enforce the goals for the day.

7:30 Examine the highlights of my trading plan (have it typed out or cleanly written by my desk). Consciously note each entry requirement and the appearance of the patterns (or criteria) I trade. Review each type of approach I seek and the reasons I trade ONLY those patterns. Although I know my trading strategy, I will follow this daily. Imagine making a transaction using each of the strategies in my plan and seeing it through to the end (win and loss).

  • Check for important news or earnings events.

8:00 Observe trades at significant levels or potential trading areas as you browse the charts of all the currency pairs I follow on the longest time frame I track. After marking potential trades or noting them down, go through the list of currency pairings again. This will guarantee that I see all the pairs and prevent me from becoming fixated on one and missing many other opportunities.

8:30 On shorter time horizons, I look for trade setups. Before making a transaction, review ALL trades that have been reported. This guarantees I will know all the pairs and their respective levels for today. I may compare each trade to the other possible trades to determine the best transactions. I’ll also see if any news stories are being released in pairs with potential transactions. I’ll also check the association if I’m contemplating more than one pair. Multiple pairs with a high correlation will be avoided. I’ll either select one of them or distribute a single position size among the highly correlated trades.

  • Trading time.

9:00 Place my stock market orders through the broker. No need to think much here. The work and analysis should already be done.

  • Schedule a break, if needed.

9:30 Check the market, email, grab a water or coffee, bathroom break, grab breakfast, move on with the day, attend class if I have a class for the day, etc.

  • Finish trading.

14:45 A specific time of day to check on the trades that were just about to go live. Also, specify if I will NOT examine trades later or before a specific time.

15:00 Stop trading. Check charts the following day. The evening is for relaxing with friends and family.

  • Schedule a time to review trades for the week

Sunday 15:00 Study the trades from the previous week. Be aware of my errors and my successes. Make certain trades have been screenshotted, saved, or printed and that trade records are current.

 

2. What are the common stock trading mistakes of beginners? 1k words (Enumerate 25) 

Here are the common stock trading mistakes of beginners:

  • No Trading Strategy

– Beginner traders might need a trading strategy before starting to trade. Even if they have a plan, they might be more likely than experienced traders to deviate from it. Novice traders might completely change their course. 

  • Chasing Markets With Strong Performance

– Many beginner traders frequently choose an asset or market that has historically performed well over the prior few years. This “Fear Of Missing Out” mindset has likely led to more poor investing choices than good ones. With all the smart money leaving and the traders making mistakes (the dumb money) flooding in, the market that has been performing well for those few years may be nearing its conclusion. 

  • Failure to Regain Balance

– The rebalancing process involves returning your portfolio to the desired asset allocation specified in your investment strategy. Rebalancing is challenging because a beginner investor might be forced to sell his best-performing asset class and increase his holdings in your worst-performing one.

  • Overlooking Risk Aversion

– Keep in mind the risk tolerance and willingness to take on danger. Some investors find it challenging to handle the volatility, swings in the market, or more risky trades. If an investment promises very appealing profits, consider the risk involved and the potential loss of capital. 

  • Losing Track of Your Time Horizon

– Without the time horizon in mind, investing might lead to failure. This is because every investment is either long-term or short-term, and its rate of return will vary depending on how long it lasts. 

  • Stop-Loss Orders Not Being Used

– Trading without a stop-loss level is like operating a vehicle without brakes. Nevertheless, many traders continue to trade without using this helpful tool. And it usually results in heartbreaking losses. unneeded and preventable losses.

  • Letting Losses Increase

– Beginner traders may become frozen if a trade goes against them. They might choose to stay in a losing position in anticipation that the trade will eventually succeed rather than moving quickly to stop a loss. A losing trade may hold up trading cash for a considerable time, causing significant capital depletion and rising losses.

  • Taking Too Big Positions

– Without a question, every trader dreams of winning a large deal. There is no assurance that the trade will go as desired by the investor. Therefore, if an investor puts 50% of his money at risk in one transaction and that deal fails, it will significantly reduce his trading capital.

  • The Value of Acknowledging Losses

– Investors much too frequently refuse to acknowledge the truth that they are only human and subject to error, just like the best investors. Holding onto a lost investment out of pride rather than financial necessity is the worst thing an investor can do. 

  • Believing in False Buy Signals

– A decrease in stock price could be caused by deteriorating fundamentals, the resignation of a CEO, or greater competition. The same factors also indicate that the stock may not rise for a while. Beginner investors frequently trust this without doing any research.

  • Purchasing With Excessive Margin

– The worst thing a novice trader can do becomes overexcited with what appears to be free money. If he uses margin and his investment doesn’t work out as he had hoped, he will be left with a significant debt obligation.

  • Over Leveraging

– Beginner traders may be mesmerized by the amount of leverage they have, mainly when trading forex, but they may quickly learn that too much leverage can quickly wipe their trading capital. A 2% negative swing is all it takes to wipe out one’s capital when a leverage ratio of 50:1 is used in retail forex trading.

  • Following the Crowd

– Another common error beginner traders make is blindly following the crowd. As a result, they may overpay for hot stocks or start short positions in assets that have previously fallen and may be about to recover.

  • Not Diversifying

– Many inexperienced stock traders need to diversify their holdings. The fact that diversification lowers risk is what makes it so crucial. If an investor invests in various stocks, he reduces the likelihood that one of them will fail and lose everything.

  • Neglecting Assignments

– Before starting a transaction, new traders frequently need to do their homework, research, or exercise due diligence. For a novice trader, the need to execute a deal quickly sometimes outweighs the need to conduct some research, but this could lead to an expensive lesson later on.

  • Buying False Tips

– Most investors fall victim to this error sometime during their investment careers. Even if these recommendations are accurate, that does not necessarily mean that an investor needs to open his online brokerage account immediately and place a buy order on the stock because it is “the next big thing.”

  • Excessive Financial Television Viewing

– Almost no information about achieving your goals can be found on financial news programs. Would they tell it on TV or sell it to you for money if they genuinely had great stock tips, trading guidance, or a secret formula to earn big money? No. They would remain silent, amass their fortune, and wouldn’t require the sale of a newsletter to survive.

  • Unable to See the Big Picture

– A qualitative analysis or considering the big picture is one of the most crucial yet frequently skipped steps for a long-term investor. Therefore, pouring through financial accounts or trying to spot buy and sell chances may often be successful still, if the world is shifting against the company.

  • Trading Several Markets

– Beginner traders may switch between markets, such as stocks, options, currencies, commodity futures, etc. Trading in several markets can be quite distracting and may impede a new trader from getting the experience required to succeed in one market.

  • The Risk of Over-Confidence

– Although trading is a reasonably tough profession, some new traders may mistakenly feel that it is the proverbial shortcut to easy money due to their “beginner’s luck” experience. Such overconfidence is risky since it promotes complacency and excessive risk-taking, which could lead to a trading disaster.

  • Inexperienced With Day Trading

– Only the most experienced investors should attempt day trading because it can be risky. Think twice before day trading unless a trader has the necessary knowledge, a platform, and access to quick order execution. There are much better options for traders who want to accumulate wealth if they aren’t very good at managing risk and stress.

  • Underestimating Capabilities

– Some investors tend to think that because sophisticated investors are the only ones who can succeed in the stock market, they will never be successful investors. Refrain from assuming that a trader’s day job prevents him from successfully trading in the financial markets. Keep in mind that a lot of investing involves using logic and common sense.

  • Getting Emotional

– All traders have felt that way when they’re having a good run and believe they can do no wrong. It’s good to be enthusiastic about trading; confidence is always a plus, but avoid letting your emotions control your trading decisions and forcing yourself into positions you wouldn’t normally take.

  • Investing Before Being Financially Ready

– Stock market trading is risky for novice investors because results aren’t always guaranteed. For instance, they could experience losses during bad markets and wind up with even greater debt.

  • Not Tracking Trades in a Trading Journal

– A successful trader requires him to keep a trading journal, which is essential. It takes a little more knowledge and focuses than simply writing down your entry and exit points for winning trades.

 

3. Why do you need to be thankful as a stock market trader when you begin at the age of 18 or start early? 1k words (Enumerate 30) 

Starting investments early in life has several benefits. Here are reasons why you need to be thankful for starting early as a stock market trader:

 

  1. Possibility of obtaining greater returns: The prospective return vs alternatives like bank certificates of deposit, gold, and Treasury bonds is the main reason why most investors choose stocks.
  2. The capacity to guard your wealth against inflation: Returns in the stock market frequently exceed inflation rates by a wide margin. Stocks have historically been a reliable inflation hedge.
  3. The capacity to generate consistent passive income: Many businesses provide investors dividends or a cut of their profits. Although some businesses pay dividends on a regular basis, most companies pay them quarterly. An investor’s salary or retirement income may be supplemented by dividend income.
  4. The pride of ownership: A share of stock denotes a portion of ownership in a corporation. You can get a small stake in a business whose goods or services you adore.
  5. Liquidity: The majority of equities are traded openly on a significant stock exchange, making it simple to acquire and sell them. In comparison to other investment possibilities like real estate investments that you can’t easily sell, it also makes stocks a more liquid investment.
  6. Diversification: Stocks make it simple to create a diversified portfolio that spans numerous industries. This can assist you in diversifying your whole investment portfolio, which may also include stocks, bonds, and cryptocurrencies like bitcoin, thereby lowering your overall risk profile and raising returns.
  7. The ability to start small: Investors can start buying stocks with less than Php 5,000 because many online brokers offer minimal commissions and the option to acquire fractional shares.
  8. More Recovery Time: If you make an early investment and suffer a loss, you have more time to recover from the loss. Early investments give your investment more time to increase in value.
  9. Save More: Early investments help you form the habit of saving more money. You will receive more in the future the more you invest. By eliminating wasteful spending and investing the money you save as a result, you tend to save more money.
  10. Enhances capacity for taking risks: Young investors are more capable of taking risks than older ones, according to studies. A strong capacity for taking risks increases the likelihood of generating substantial rewards at an early age.
  11. Value of Money Over Time: Regular contributions started at a young age can pay out handsomely in retirement. At that age, you can buy items that others might not be able to because of early investments. You now have an advantage over people who prefer to invest later in life.
  12. Secured Future: You will encounter situations in life where you need quick cash to cover unexpected bills. The investments you made when you were young can come in extremely handy during these times and will aid you in getting through the difficult times on your own.
  13. Turn to become a Creditor: A wise investment is one made at a young age. If you have money left over after investing it, you won’t ever need to borrow money or take on debt.
  14. Maintain Your Retirement Plans: Investments made at a young age improve the likelihood of achieving financial security at a young age. It is always preferable to start saving for retirement in your 20s than wait until you are in your 40s.
  15. Time allows you to take risks: When it comes to investing, more risky endeavors typically produce the biggest return on investment. Investors have the chance to take on greater risk because they have the time to recoup if something goes wrong.
  16. Possibly result in early retirement: In a shorter period of time, early investing may also result in early retirement. The FIRE (financial independence, retire early) movement may tempt some young individuals to begin investing early. Making smart investing to enable early retirement has proven successful for many people.
  17. Your financial discipline will increase: By paying attention to your budget and making necessary cuts to your expenditure, early investment enables you to cultivate disciplined spending habits. Here, making money by saving is the aim.
  18. Be one step ahead of the competition: It’s wise to abide by the proverb “the early bird gets the worm.” Your future financial status will be better if you start investing sooner rather than later.
  19. Your standard of living will improve: Military purchasers should be informed of their mortgage alternatives when buying a new house and base their decisions on their own financial circumstances.
  20. It provides you with the chance to take charge of your future: Choosing where to direct your money can be empowering. By investing, you give your cash a “task” to do: make you richer over time, as opposed to spending it or, worse, not knowing where it is going.
  21. You Should Do It or You’ll Regret It: Yes, a key regret of successful investors is that they didn’t make investing a habit sooner. When asked what is the one piece of investment advice they’d give to their younger selves, the majority of seasoned investors will respond, “start earlier.”
  22. It’s Acceptable to Make Errors: Many people shy away from investing because they’re worried about making mistakes, including picking the incorrect stocks or going out of business. It doesn’t take a lot of time and effort to invest wisely; it’s not this big, difficult thing.
  23. Investing Has Never Been This Simple: There are so many various methods to invest, and setting up the majority of them doesn’t take very long. Starting out is usually rather simple; your human resources department can assist.
  24. Learn Lessons Early: No one, regardless of age, is an expert when they are a rookie investor. Whether you start in your 20s or your 50s, there will always be a small learning curve.
  25. Longer timelines permit greater risk: Your time horizon is the anticipated period of time until you intend to utilize the investment capital. Young folks who have a wider time horizon have the chance to take on greater risk as they probably won’t need the money for many years.
  26. You’ll be helped in times of need if you have the security of an emergency fund: A few of the major expenses that most people try to plan for include marriage, children’s education, and retirement, and starting early will help you have the money you need when you need it. Additionally, it will stop you from making rash financial judgments.
  27. Starting with established stocks can increase your income: Investing in reputable tech stocks early on is a wise decision. Before you become accustomed to the market’s potential swings up and down, you must first become used to them.
  28. Early investment is the key to patience and success: New investors can discover that patience can pay off when they start investing early. In the long run, if you start investing now, you might be able to work significantly less throughout your life because you’ll be letting your money take on the bulk of the labor.
  29. Early investment eliminates the need to time the market: Many people desire to try to outsmart the market when investing early in an effort to try to make a higher profit. To maximize short-term returns, it is foolish to try to time the market and predict what will happen next.
  30. Invest early and with a long-term plan: Stock market investing is actually for the long term; it’s not a get-rich-quick program where you get rich quickly. Purchasing high-quality firms will help you increase your wealth as they expand their operations.

 

4. What are the great excuses for the loser in the stock market? 500 words 

Only the stock market has items for sale that no one is willing to purchase. This may seem nonsensical, but it is exactly what happens when there is a minor percentage shift in the market: when it falls, investors panic and sell everything, but when it rises, everyone rushes to the market and justifies their actions with a few well-known rationalizations. The adage “Buy High and Sell Low” couldn’t be more true in this case.

 

Here are the great excuses of the losers in the stock market trading:

 

First excuse:

“I no longer enjoy these shares, so I’m selling.”

Investors who allow their emotions to control them frequently claim this as a justification; they require the rush of adrenaline that comes from gambling. This desire typically stems from the misconception that a successful investor must trade every day in order to realize significant gains. However, the truth is very different:

 

  • While it is true that investing wisely is less fun, it is also true that the only surefire method to profit from the stock market is to stick to your investments for a long time;
  • The majority of investors join and exit the market at the worst times, missing out on crucial chances that could have made all the difference.

 

The only way to gain from a top company’s success, therefore, is to hold your investments for a long time if you want to make money. Successful businesses actually have a tendency to expand their earnings over time and are rewarded with higher share prices, which results in bigger profits for shareholders.

 

Second Excuse:

“I’ll reinvest when the price is lower next week”

Aspiring investors frequently have this thought while they wait for prices to drop. However, the truth is that markets are erratic, particularly in the near term, making it impossible to anticipate whether they will increase or decrease over the next several weeks.

 

This line of reasoning might be inspired by one of two circumstances:

 

  • Greed, or desire to obtain the finest deal possible at all costs,
  • Fear or a sense of panic at the prospect of short-term financial losses if the share price declines

 

Given that no one can predict if the price would actually decrease in the upcoming weeks, the risk in both situations is missing an opportunity to invest.

 

Third Excuse:

“I’d rather hold off on making investments until the market is secure enough.”

This final justification is generally offered after the market has fallen, either through a brief decline in share prices or a sustained decline. The issue is that when investors claim they are anticipating a return to market stability, what they really mean is that they are anticipating a return to price increases, which will inevitably result in them having to pay more for the shares they desire.

 

This way of thinking is a result of what is known as loss aversion, which is the investor’s preference to prevent a short-term loss above making a long-term profit.

 

Eventually, it can be demonstrated that if an investor keeps their investments without continually checking the markets, they may earn at least twice as much as someone who makes investments less than once a year and then inadvertently drops them. Since it is hard to predict which days will be crucial in advance, holding onto your investments is the only way to benefit from all of these days without having to be concerned about short-term fluctuations.

 

5. 16 characteristics of a good stock market trader? 800 words 

Key components in the pursuit of long-term success in financial speculating include well-honed trading abilities and a clearly defined edge. But despite the best efforts of all the books, websites, and mentors, trading performance is still negatively impacted by negative attitudes and psychological barriers from the point of preparation to the point of exit. Maybe this explains why successful traders have similar psychological traits.

 

A good trader should make sure to:

  1. Positive Attitude:  Successful traders have a healthy dose of optimism, even when it isn’t supported by the most recent profit and loss statement because they are aware that drawdowns are only temporary and that they have the tools necessary to recover losses. They also realize that trading is a zero-sum game in which there are winners and losers, and they constantly picture themselves on the winning side, regardless of immediate outcomes.
  2. Balance Away From the Market: Successful traders invest the same amount of time in their personal lives as they do in market research. They take good care of their body by eating a balanced diet and are aware that recreation is an important activity for maintaining optimum trading performance. When their own attempts to achieve balance fails, they also turn to the advice of clerics, therapists, or gurus.
  3. Commitment: Solely focuses on trade. Anything that would prevent you from focusing entirely on the markets is put off until after the trading day has ended.
  4. Introspection: Regularly evaluates one’s own strengths and faults. Strategies are developed to enhance the advantages and counteract the disadvantages. Successful traders are more focused on how they compare to the criteria they have established for themselves than on how they compare to others.
  5. Self-Regulation and Improved Awareness: Whatever the situation, reacts calmly. The effective trader is not so excited by wins or losses that he loses his ability to think clearly.
  6. Realistic: Establishes attainable objectives. Never gamble recklessly in an attempt to “increase” your chances of winning big. acknowledges that losses are unavoidable regardless of a trader’s skill level and that traders have no personal control over the market.
  7. Discipline: Any success ladder must be climbed with discipline. Traders who exercise discipline in their research, adhere to a plan, determination of objectives, and exit are frequently successful.
  8. Patient: Recognizes that rapid enjoyment is uncommon. does not follow the market. knows there will always be opportunities in the future. Discipline and patience go hand in hand. Day trading, like all forms of trading, necessitates a lot of waiting, as was already mentioned. Jumping into, or out of, trades too early or too late is a rampant problem among new traders. When a trader is entering or exiting the market at unfavorable times, they will frequently say, “My timing is off.” One could also say, “My patience is off.”
  9. Adaptable: Adapts to unforeseen occurrences and shifting situations. acknowledges that while a trader must abide by a set of rules, those rules may need to be altered when market conditions change. In all market conditions, traders must be able to execute their strategy in real-time and be aware of when to exit. In many cases, failing to adjust to the present state of the market will cause a rapid loss of capital.
  10. Responsible: Doesn’t place blame for mistakes on others. accepts danger in return for the potential of a suitable payout.
  11. Thinking Creatively: Transcends the obvious to see. draws inspiration from a wide range of sources and isn’t hesitant to try something new or unconventional.
  12. Self-Confidence: Believes they will be successful. Do not let failures weaken that conviction. Successful traders avoid dwelling on past failures unduly because they understand that they cannot be undone. They also understand that each deal is independent of the past and presents a fresh chance to get things right.
  13. Have a Trading Plan and Do Homework: Market analysis takes hours of time from successful traders. They keep track of charts and update their notebooks with the tactics they’ll use the following trading day. These traders are more knowledgeable about the market’s current trends and are able to recognize the strongest industries and the strongest companies within those industries. They are aware of the level they would be entering and the rough goal they have for that specific position. Good technical traders, on the other hand, follow the market flow rather than worrying about the news cycle.
  14. Limit Your Trading: One of the biggest errors traders make is overtrading. Disciplined traders trade sparingly when the markets are choppy and refrain from trading when there are no potential trades on the horizon.
  15. Ability to Distinguish Real News from Fake News:  Successful traders make their own decisions to achieve their own goals without being swayed by the hoopla surrounding the news.
  16. Never Be Alarmed By Losses:  Successful traders exercise caution and employ money management strategies. Always accept losses as a learning experience, and then try to figure out why the markets moved against you. Even trades that resulted in losses might teach one valuable trading lessons.

 

6. What are the top IPO stock tradings after the pandemic? 1000 words

Several initial public offers (IPOs) have prospered in the local stock exchange in earlier years. There are organizations that have gone public as a way of attaining their goals including expansion, acquisitions, and innovation even against apparent market uncertainty, especially with the present pandemic hurting the economy significantly.

 

The Philippine Stock Exchange (PSE) has seen the following major initial public offerings (IPOs) over the previous five years.

 

  • MerryMart

Despite the catastrophe that the pandemic caused, four initial public offerings (IPOs) took place last year. Edgar “Injap” J. Sia’s grocery chain MerryMart Consumer Corp. (PSE: MM), which is owned by Edgar, went public for the first time in that difficult year on June 15.

 

1.59 billion shares were made available to the public as part of its P1.6 billion initial public offering (IPO), and it ended its first trading day at P1.50 per share. As the lead underwriter, issue manager, and bookrunner for the offering, PNB Capital and Investment Corp. (PNB Capital) performed these roles. The supermarket chain operator expects to have 1,200 locations throughout the nation by 2030, with the first 100 of those locations opening as early as the fourth quarter of 2021.

 

  • APVI

Altus Property Ventures, Inc. (PSE: APVI), which entered the stock market on June 26 by way of introduction and did not immediately make its shares publicly available, came after MerryMart’s IPO.

 

The first share price for the initial public offering (IPO) of the real estate firm that was formerly a division of Robinsons Land Corp. (RLC) was P10.10. On its first day of trading, shares peaked at P240 per share and ended at P18.50 each. The financial adviser for this offering was chosen to be First Metro Investment Corp. (First Metro).

 

  • AREIT, Inc.

The first real estate investment trust (REIT) offering in the nation was made last August by AREIT, Inc. of Ayala Land, Inc. (PSE: AREIT), with a P12.33 billion offering. Despite falling from P27 to P24.90 on its first trading day on August 13, it had a twofold oversubscription by the time the offer period closed on August 3.

 

The sole global coordinator and joint bookrunner for the offering were BPI Capital Corp. (BPI Capital). The domestic underwriters were BPI Capital, PNB Capital, and SB Capital Investment Corp., with UBS AG Singapore Branch acting as the only international bookrunner.

 

The proceeds from the offering will be used by AREIT, Inc. to purchase Teleperformance Cebu and to make investments in other real estate properties in Metro Manila and other important areas. The company’s portfolio includes the 24-story commercial building Solaris One, the mixed-use development Ayala North Exchange, and the five-story commercial office building McKinley Exchange.

 

  • Converge ICT

Converge ICT Solutions, Inc. (Converge ICT), a fiber Internet service provider, launched its IPO on October 26 amid increased efforts by telcos to address the rising demand for connection. Converge ICT’s first public offering, which totaled P29.08 billion and offered up to 1.51 billion common shares at P16.80 apiece, was the largest offering to date. This amount is higher than the P28.11 billion raised in 2013 by Robinsons Retail Holdings, Inc.

 

BDO Capital & Investment Corp. (BDO Capital) was chosen as the joint local underwriter and joint bookrunner for the IPO, while BPI Capital served as the sole local coordinator, joint local underwriter, and sole bookrunner. Among the local underwriters who are participating are First Metro and PNB Capital.

 

About 90% of the net proceeds from the offering will be used by Converge ICT (PSE: CNVRG), owned by Pampanga-based entrepreneur Dennis Anthony H. Uy, to finance capital expenditures as it grows nationally. Currently, its services are available throughout Luzon, particularly in Metro Manila.

 

  • Fruitas

Fruitas Holdings, Inc., a company that operates fruit and beverage kiosks, entered the market in 2019. (PSE: FRUIT). Fruitas shares debuted at P1.82 per share, up 8% from P1.68 per share in its initial public offering. The stock rose as high as P2.45 before ending at P1.71 per share. With an over-allotment option of up to 68,340,000 outstanding common shares, the business offered 533,660,000 primary common shares.

 

As joint issue managers, bookrunners, and lead underwriters for the offering, BDO Capital and First Metro were chosen.

 

Fruitas hopes to raise P1.2 billion through the IPO, which the company would use to pay off debt and finance its expansion goals, acquisitions, and introduction of fresh ideas. Fruitas has set a goal to open 150 to 250 outlets annually over the following three years ever since the IPO got underway.

 

  • DMWAI

In spite of market volatility, D.M. Wenceslao & Associates, Inc. (DMWAI) was one of the businesses that went public in 2018. DMWAI (PSE: DMW) intends to sell 679.17 million shares under its P17.89 billion initial public offering at a price of P22.90 per share, with an over-allotment option of up to 101.88 million shares.

 

Maybank King Eng Securities Pte. and BPI Capital Ltd. were chosen to serve as the offer’s joint worldwide coordinators and bookrunners; the latter also served as the international lead manager and underwriter. DMWAI planned to use the net proceeds of the issuance to finance its projects in the 204-hectare Aseana City in Paranaque City.

 

  • Wilcon Depot

Wilcon Depot, Inc. (PSE: WLCON), a retailer of building supplies and home improvement products, made its debut on the stock market in 2017 with a P7.92 billion initial public offering (IPO) that included about 1.4 billion common shares priced at P5.68 each. For the initial share offering, the store recruited First Metro as the issue manager and bookrunner and BDO Capital as a joint lead underwriter.

 

Wilcon anticipated making P7.58 billion from the IPO at the top price. Prior to 2018, it planned to allocate P500 million for general company purposes, P972.4 million for debt repayment, and P6.11 billion for store network growth.

 

  • Cemex

Cemex Holdings Philippines, Inc. (PSE: CHP), the Philippine subsidiary of Mexican cement and building materials giant Cemex S.A.B. de C.V., was the largest initial public offering (IPO) in 2016 previous to Converge ICT, raising P25.1 billion at a price of P10.75 per share.

 

The business planned to use the net revenues from the IPO to pay off short-term obligations so that it could use internally produced money to finance the $300 million expansion of its Solid Plant in Antipolo City, Rizal.

 

7. What are the top Blue Chip stocks during and after the pandemic? 1500 words 

During the Pandemic

When the PSE Index dropped from 7,742 at the beginning of the year to 4,039, a nine-year low, the stock market has already lost as much as 47% of its value this year. However, despite the potential for another market downturn, there are a select few businesses that operate in recession-resistant sectors that are likely to survive and even prosper in these trying times.

 

Here are the top five blue chip stocks during the pandemic:

 

  • Globe Telecoms, Inc.

With more than 94.2 million mobile users and 2.0 million home broadband customers, Globe Telecoms, Inc. (PSE: GLO) is the biggest telecommunications services provider in the Philippines. Due to the strong demand for internet and wi-fi services, particularly during this quarantine time when individuals are compelled to stay at home, GLO is typically resistant to economic downturns.

 

Data-related revenues make up about 71 percent of GLO’s total revenue, with mobile data accounting for 48 percent of those revenues, followed by home broadband at 14 percent and corporate data at 9 percent. According to GLO, its overall service revenues rose from P132.8 billion in 2018 to P149 billion in 2019—a 12 percent rise. This rise, along with lower operating costs, allowed for a 20% increase in net income to P22.3 billion.

 

  • Manila Electric Company

The largest electric power distributor in the nation is The Manila Electric Company, also known as Meralco (PSE: MER), with a franchise area that includes 6.4 million customer accounts in 36 cities and 75 municipalities. Due to the demand for the electric services it offers, MER has historically flourished in challenging economic conditions.

 

When opposed to other companies that are economically sensitive, MER offers a good defensive play because it is unaffected by business cycles. On the heels of overall revenues of P318 billion, up 4.6 percent from the previous year, MER’s net income growth in 2019 was nearly unchanged at 1.1 percent, or P23.2 billion. One of the blue-chip stocks that have performed the best is MER, which has recovered 10.9 percent so far.

 

Based on its most recent cash dividend and the stock’s current share price, MER has a dividend yield of 5.9 percent.

 

  • Manila Water Company, Inc.

Over six million people from 23 cities and municipalities are served by Manila Water Company (PSE: MWC), the country’s largest provider of water and used water services, in Metro Manila’s East water concession region. MWC is a utility firm that, like MER, has a history of outperforming the PSE Index during a market slump.

 

From P19.8 billion in 2018 to P21.9 billion in 2019, MWC’s total revenues climbed by 11%. However, as a result of rising operational costs and the water supply deficit in 2017, its net income decreased by 16% to P5.5 billion. After an investor group led by business tycoon Enrique Razon on behalf of Prime Metroline Holdings agreed to buy additional shares in MWC for P10.7 billion plus proxy rights for a total economic interest of 25%, the stock has since recovered to a high of P14.96 per share.

 

  • Puregold Price Club, Inc.

With 423 shops strategically positioned across the nation and a total of around 550,000 square meters of net selling space, Puregold Price Club (PSE: PGOLD) is the biggest supermarket chain in the Philippines. Due to the fact that consumer demand for groceries has consistently outlasted previous economic downturns, supermarket retailing has come to be seen as a recession-proof industry.

 

It is predicted that net income for 2019 should have reached P6.7 billion, or 2.9 percent more than P6.5 billion reported in 2018, on the back of 10-percent growth in revenues of P154 billion, based on the actual nine-month financial results of PGOLD in September of last year. With a cumulative gain of 29.78 percent, PGOLD has been one of the best-performing blue chip stocks since the shutdown.

 

  • Century Pacific Food Tuna, Inc.

One of the biggest branded food companies in the Philippines, Century Pacific Food, Inc. (PSE:CNPF) has a wide range of reliable brands in the dairy, canned and processed fish, and canned meat industries. When there is a crisis, CNPF is one of the companies that directly benefit from the increased demand for canned food products. This year, sales may exceed their usual growth of 10 to 15 percent.

 

As total revenues increased by 7% to P40 billion, mostly due to its branded items, which grew by 11%, CNPF’s net income increased by 11% to P3.1 billion from P2.8 billion in 2018.

 

A rise in earnings of at least 20% could help the stock of CNPF to trend higher in 2019 given the anticipated record sales. Higher profits equate to higher share worth. With the stock currently trading at P0.89 per share, a 20% growth would equal P1.068 this year.

 

After the Pandemic

There are 30 blue-chip stocks that compose the PSE index. Here are the top ten blue-chip stocks after the pandemic:

 

  • Ayala Corporation

One of the most established and well-known commercial organizations in the Philippines is Ayala Corporation. For job seekers, it is the top blue-chip company in the Philippines. Real estate development, banking and financial services, telecommunications, water distribution infrastructure, electronics manufacturing services, automotive dealerships, overseas real estate investments, business process outsourcing, and renewable energy and power are all included in its diversified business portfolio.

 

Anyone who wishes to foster thought leadership, personal empowerment, and being rewarded for effort is a good fit for Ayala Corporation.

 

  • Banco De Oro (BDO)

A full-service universal bank, BDO offers a variety of corporate, retail, and business banking services. Traditional lending and deposit products, treasury, trust banking, private banking, cash management, leasing and finance, remittance, insurance, retail cash cards, and credit card services are among the services offered.

 

  • Bank of the Philippine Islands (BPI)

The first bank in the Philippines and all of Southeast Asia was established in 1851 and is known as Bank of the Philippine Islands. As a universal bank, BPI provides a variety of financial products and services to both retail and business customers through its subsidiaries and affiliates.

 

Filipinos have worked with BPI for many years as their dependable financial partner, and the two of them have overcome many historical obstacles. Despite difficulties, many people are happy with BPI. Currently seeking motivated people who wish to contribute to a top-performing financial institution, BPI is continuing to succeed in leadership.

 

  • Globe Telecom

Globe Telecom is a dynamic company that works hard to provide customers with the best and most individualized products and services while also making its employees and shareholders happy. Globe Telecom is a telecommunications company.

 

The company’s goods and services continue to flourish and improve the lives of millions of customers.

 

  • Jollibee Foods Corporation (JFC)

Since the 1970s, Jollibee has been one of the most well-liked fast food options. From the start, it pushed major competitors like McDonald’s to cater to Filipino tastes. Having been in business for nearly a decade, Jollibee is a well-known brand with locations all over the world.

 

Jollibee is continuously looking for candidates that want to be a part of a regional fast-food business that rules the market, from marketing to food services.

 

  • Metropolitan Bank and Trust Company (Metrobank)

With the greatest integrated network of over 2,200 automated teller machines nationally, and more than 900 domestic and 30 overseas branches, subsidiaries, and affiliates, Metrobank is the leading universal bank in the nation. As a well-known leader in the nation’s banking sector, Metrobank has earned the reputation of being a reliable banking partner by upholding its commitment to keeping you in good hands.

 

Because of the durability and power of its brand, Metrobank is now regarded as a reliable banking partner. The Bank’s employees, who are dedicated to product quality, service distinction, outstanding work ethics, and best practices in governance, continuously drive the organization’s development, which is guided by a shared vision.

 

  • Megaworld Corporation

One of the best blue-chip companies for new hires is this one. Megaworld has been at the forefront of real estate market developments as the first of its kind in the Philippines. It was the first to embark on projects for middle-class condominium living, construct office buildings for businesses focused on business process outsourcing, establish overseas offices to reach the Filipino market abroad, and provide flexible payment terms and home financing options. Megaworld has launched more than 240 residential complexes, office towers, shopping malls, and hotels during the past 27 years.

 

  • San Miguel Corporation

The largest publicly traded food, beverage, and packaging corporation in Southeast Asia, San Miguel Corporation (SMC), employs over 15,000 people across more than 100 significant sites in the Asia-Pacific.

 

San Miguel Corporation is searching for individuals to join them on this journey that share their values and have a high level of initiative and responsibility.

 

  • Philippine Long Distance Telecommunication (PLDT)

The top provider of digital and telecommunications services in the Philippines is PLDT. The Philippines’ largest fiber optic backbone, as well as fixed line and cellular networks, are used by PLDT to provide a wide range of telecommunications and digital services through its main business groups, including fixed line, wireless, and others.

 

  • Universal Robina Corporation (URC)

One of the biggest and best-known manufacturers of branded consumer food and beverage products in the Philippines, Universal Robina Corporation is also increasingly present in ASEAN markets.

 

URC offers engaging opportunities for people to realize their potential and hone their skills, and it empowers its employees to become whole persons and socially responsible leaders. URC encourages people to be their best selves and gives them fulfilling careers.

 

8. What are the things you need to know when buying IPO stocks? 1k words (Enumerate) 

In the 1990s dotcom mania, initial public offerings (IPOs), the first time the stock of a private firm is sold to the public, got a little out of hand. At the time, investors could invest in practically any IPO and were almost guaranteed to make a killing—at least initially. Those who had the intelligence to enter and exit these businesses gave the appearance that investing was simple.

 

The tech bubble eventually burst, and the IPO market went back to normal. In other words, investors could no longer anticipate making double- and triple-digit gains from stock flipping as they did during the early tech IPO era.

 

Today, there is profit to be earned in IPOs once more, but the emphasis has changed. Investors are more likely to thoroughly examine a stock’s long-term potential rather than seeking to profit on its immediate rebound.

 

IPOs are risky investments for a number of reasons. First of all, there is no assurance that the company you invest in will be profitable in the long run, just like with most investments.

 

Second, there is frequently a lot of hype around IPOs, which can result in exaggerated hopes for the future success of the company. Due to this, shares may be purchased by investors at inflated prices, only for the stock value to decline shortly after the IPO.

 

Finally, IPOs are subject to intense regulatory scrutiny, which may cause delays or even cancellation. This implies that the postponement or cancellation of an IPO is always a possibility.

 

Given a large number of IPOs planned for the upcoming months, it is crucial for investors to understand what to look for before investing in an IPO.

 

  • The Red Herring Prospectus should be read: When a business plans to raise capital by offering its shares to the general public, it files the Draft Red Herring Prospectus with SEBI. This document outlines the company’s intended use for the funds that will be raised from the general public as well as any potential risks for investors. Thus, before investing in any IPO, investors must carefully read this document.
  • Motives driving the Fundraising: It should be noted that it is essential to look into how the company plans to use the money received from the Initial Public Offering. Check to see if the company intends to pay off its debt or if it intends to raise money to partially pay off debt and grow the business or to use the money for corporate reasons. This demonstrates that the money will be used wisely in the company, which is encouraging for an investor.
  • Understanding the Business Model: Before participating in the Initial Public Offering, investors should be aware of the company’s business model. The following stage is to identify the new potential in the market after they are aware of the type of business the company is engaged in. This is because the size of the opportunity and the company’s ability to gain market share can have a significant impact on both the company’s growth and shareholder returns. Investors should avoid the company’s initial public offering (IPO) if they don’t understand the company’s business operations.
  • Examining the Management and Promoter Background: Knowing who is operating the business is crucial since they form its foundation. Investors should consider the promoters as well as the company’s management because they are crucial to all of the company’s operations and functions. The company’s management is crucial to the success of the enterprise. In order to get a sense of the working culture of a company, one should look into the credentials and length of service of the senior management.
  • Company Strengths and Weaknesses: Before making an investment in a company’s initial public offering, one should perform a SWOT analysis. The DRHP can be used to examine the company’s main strengths and weaknesses. Investors should research the company’s standing in the industry it serves. In order for investors to analyze the business’s future possibilities, one should attempt to read about the company from a variety of sources as well as regarding strategies.
  • Valuation of the Company: Investors should also examine the company’s values because the offer price can be too high or too low based on the industries in which the company operates and its financial statistics.
  • Condition of the Business: For the purpose of determining whether the company’s revenue or profit is increasing regularly or not, it is crucial to review the financial performance of the business over the previous several years. Purchasing shares in an initial public offering may be a wise investment if revenues are rising. Before making an investment in the company’s IPO, investors must be aware of its financial situation.
  • Financial Horizon: Investors should have a defined investment horizon prior to participating in the company’s IPO. They should choose whether they want to hang onto the shares for a longer period of time or only trade them on a listing day if they intend to invest in the IPO. This is because a trading strategy would be based on the state of the market at the time, while a long-term plan would be based on the company’s fundamentals.
  • Peer Comparisons: Investors ought to research the competitors of the company. The DRHP includes peer comparisons based on valuations and financial metrics. Investors can examine comparative valuations to determine whether the company’s valuations are reasonable compared to those of its competitors.
  • Potential of the Company in the Market: Investors should also investigate the potential of the business, including any possibilities and risks, in the industries in which it operates. Comparative valuation compares the company’s value to that of other similar companies in the industry, whereas valuation refers to the IPO price in relation to the company’s financial situation. You must invest in a firm if both its value and its comparable valuation are positive. On the other hand, if a corporation is losing money while charging outrageous prices, your brain should start to raise red flags.

 

It takes extensive research to purchase IPO equities, and doing so can be dangerous. IPOs may not be a sure thing, even for those who are fortunate to get in on the first-day flurry. Therefore, the majority of individual investors should carefully research new firms, and it’s a good idea to keep your position in any given company to a few percent of your total assets.

 

9. How to spot fake trade in a stock market? 1k words (Enumerate)

The well-known “pump and dump” scheme is one of the most widespread online scams. Here’s how it works: A corporation may post a nice news release about its financial standing or a new product or innovation on its website. It’s possible for newsletters that claim to offer unbiased advice to suddenly promote the company as the newest “hot” stock. You can be urged to buy the stock immediately or to sell it before the price drops in chat rooms and on message boards. Alternatively, a radio or television analyst might make a reference to the business.

 

Cold calling was commonly used in pump-and-dump tactics. But as the internet has grown in popularity, this illegal behavior has multiplied. Online scammers post comments persuading investors to purchase stock right away by claiming to have inside knowledge that a certain development will increase the share’s price. Once buyers enter the market, the perpetrators sell their shares, which causes the price to fall sharply. Then, new investors lose money.

 

The easiest stocks to manipulate in these schemes are micro- and small-cap stocks. It doesn’t take many new buyers to raise a stock because these stocks have a small float.

 

The stock is then bought up by uninformed investors in large quantities, which raises demand and the price. The price of the stock plummets and investors lose money when the con artists behind the plan sell their shares at the height and cease advertising it.

 

Because it is simpler to manipulate a stock when it is little to no information accessible about the company, fraudsters typically utilize this scheme with small, thinly traded companies. Always research potential investments before making one to avoid scams:

 

  • Consider the Source: Until you can independently verify an offer’s validity, believe it is a fraud when you encounter it on the Internet. Additionally, keep in mind that the individuals selling the stock may be hired shills or corporate insiders who stand to make a tidy profit if you trade.
  • Find Out Where the Stock Trades: The Philippine Stock Exchange, Inc.’s or a national exchange’s listing standards cannot often be met by many of the smallest and thinly traded stocks. Instead, they trade on the “over-the-counter” market and are quoted on OTC platforms like the Pink Sheets or the OTC Bulletin Board. The majority of the time, stocks that trade on the OTC market are the riskiest and most vulnerable to manipulation.
  • Independently Verify Claims: Grandiose statements about upcoming product developments, lucrative contracts, or the company’s financial stability are simple for a business to make or for its promoters to make. However, be sure you’ve independently checked such claims before investing.
  • Research the Opportunity: Always request the prospectus or most recent financial statements and carefully examine them. Always verify with your state’s securities authority as some tiny businesses are not required to register their securities offerings. It’s a positive indicator if you receive intelligent responses that are supported by statistics, testimonies, research, or other reliable sources of information. Be quite suspicious if you only receive hot air and lofty promises. Investigate an investing offer online if you have any doubts. Many other investors are frequently happy to share their positive or negative experiences with others. Scammers and fraudsters frequently come to light, and the internet aids in swift communication.
  • There’s no Procedure for Verification: To make sure that all of the users on the platform are authentic, regulators insist that every new user who registers with an online trading platform go through a rigorous verification process. If there isn’t a verification procedure, it’s probably a hoax. It’s crucial to be vigilant and review other sites that are similar to see where the gaps are or if there are any differences in copy or methods because some scammers might develop their own bogus verification process. Keep in mind that any respectable institution will confirm its own credentials and be able to demonstrate that it belongs to the organization it claims to represent. They ought to be able to identify themselves if you ask them questions. It’s very likely a scam if you hear a prerecorded message, especially if it contains a threat or warning.
  • Avoid High-Pressure Pitches: Don’t fall for the claim that you’ll miss out on a “once-in-a-lifetime” opportunity to make great money if you don’t move immediately. Beware of promoters who rush you to buy before you have a chance to think about and thoroughly study the so-called “opportunity.”
  • Always Have Doubts: Ask yourself, “Why me?” whenever a stranger offers you a hot stock recommendation. What makes this stranger tip me off? How would a trade benefit him or her? Undoubtedly, there are investment methods and chances that provide significant potential gains. And it’s okay to pursue those if you’re aware of the dangers and they fit well with your financial objectives. However, you should examine the possibility much more seriously if it makes a guarantee of astronomical returns with little to no risk.
  • Be Wary of the Most Popular Hot Investment: It seems like there is always some trendy investment trend that keeps rising as more and more people join. Stocks associated with marijuana, cryptocurrencies like Bitcoin, and shorted stocks are some recent instances (such as GameStop). On these kinds of investments, there are frequently people who do make a sizable profit. But they frequently enter the game quite early and are relatively fortunate. By the time the majority of investors learn about the incredible profits in the newest trending investment, it has typically turned into a bubble, which typically has a poor outcome.

 

If someone you don’t know gives you a stock tip, pause and consider why they would be so willing to give you such knowledge. Always keep this investing adage in mind: “If it sounds too good to be true, it probably is.” It is doubtful that you will experience a substantial and rapid return on your investment. Additionally, it’s crucial that you study any investment on your own. This ought to assist you in avoiding falling victim to such pump-and-dump frauds.

 

10. Top long-term stocks during the pandemic and after the pandemic.1500 words

Throughout the COVID pandemic and the ongoing occurrence of a low-interest-rate environment, investors worldwide have been waiting it out. When the economic recovery surge starts, timing will be important, and the Asia-Pacific region appears to have the most potential for increased growth. The Philippines is one of many markets that are prepared to ride the wave that is about to hit them.

 

During Pandemic

Despite the market’s poor performance, some stocks managed to outperform the PSE Index. In actuality, double-digit returns of at least 10% were achieved by nearly 25% of all listed companies.

 

Here are the top five stocks for the first eight months of the year 2019:

 

  • Ginebra San Miguel, Inc.  

Ginebra San Miguel, the most popular gin in the world, is produced by Ginebra San Miguel Inc. (PSE:GSMI). San Miguel Corporation, the largest conglomerate in the nation, owns 67.8% of GSMI’s subsidiary, San Miguel Food and Beverage, Inc., and controls the bulk of the company.

 

Since 2007, the net sales of GSMI have increased slowly, just 5% annually, from Php13.9 billion to Php20.9 billion in 2017. This is consistent with GSMI’s net income growth of 4% annually, which increased to P602 million in 2017 from P394 million in 2007.

 

Sales for the first quarter of GSMI increased by a further 28% to P8.3 billion from P6.4 billion during the corresponding time last year. The company was able to improve its net income by 141 percent to P615 million from P255 million last year thanks to more sales and lower costs as a result of operating efficiencies. Even though GSMI’s stock price has more than doubled this year, its price-to-earnings ratio is currently only trading at 12.5 times.

 

  • Holcim Philippines, Inc.

Cement is one of the main products of Holcim Philippines, Inc. (PSE: HLCM), one of the biggest producers in the nation. As a part of the Lafarge Holcim Group, the top provider of cement and other services for the construction industry, HLCM has seen its net sales increase by an average of 7% annually over the past 10 years, from P18.1 billion in 2008 to P35.6 billion in 2018.

 

This led to a comparable increase in net income of 7%, rising to P2.5 billion from P1.3 billion in 2008. According to HLCM, net income for the first half of the year dropped by 10% to P1.4 billion from P1.6 billion in the corresponding period last year, while net sales dropped by 18% to P15.4 billion from P18.7 billion.

 

The purchase of San Miguel Corporation was the main factor in HLCM’s stock price more than doubling this year, despite the underwhelming earnings reports. In order to represent the premium received after the announcement, the stock price of HLCM increased even further, rising as much as 19 percent at P16. Since then, the price has decreased to P14.08 per share. Given the company’s expected profits growth and the present Price-to-Earnings (P/E) ratio of 37 times, HLCM’s pricing appears to be high.

 

  • PHINMA Energy Corporation

PHINMA Energy Corporation (PSE: PHEN), formerly Trans-Asia Oil and Energy Development, focuses largely on electricity supply and power generation with some secondary investments. Over the past ten years, PHEN’s income has increased by an average of 28%, from P1.5 billion in 2007 to P17 billion in 2017. The increase in sales enabled PHEN’s net income to increase by 16 percent annually, from P78 million in 2007 to P353 million in 2017. However, PHEN reported a financial loss of P560 million last year despite its revenues declining by 11% to P15 billion.

 

PHEN’s six-month financial results showed a net loss of P552 million despite a small increase in total revenues of P2.5 billion to P8.3 billion. Due to the involvement of Ayala Corporation through its subsidiary, AC Energy, the stock price of PHEN increased by more than twofold this year. Recently, AC Energy declared that it has paid P3.669 billion to acquire 51.48 percent of PHEN. PHEN appears to have been purchased in January for about market value. After injecting new money of P2.6 billion into the company, AC Energy plans to grow its ownership in PHEN to 68 percent.

 

  • 8990 Holdings, Inc.

The largest mass home developer in the nation, 8990 Holdings (PSE: HOUSE), has constructed over 58,000 housing units under the Deca Homes brand in just 14 years. Since 2012, the company’s net earnings have increased by an average of 19% annually, going from P1.7 billion to P4.1 billion in 2017 thanks to robust sales growth. According to HOUSE, its net income increased from P4.2 billion in 2017 to P4.7 billion in 2018 thanks to a 14.8% increase in revenue of P11.7 billion.

 

According to information released by the company this year, total revenues jumped by 20% to P3.0 billion, while net income for the first quarter increased by 16.7%, to P1.17 billion, from P1.0 billion in the corresponding time the previous year. HOUSE just started a buy-back campaign with a P2.0 billion budget, believing that the stock has been undervalued by the market. 43 percent of the budget has already been used by the business.

 

  • Sta Lucia Land, Inc.

With approximately 10,000 hectares of land developed in the last 45 years, Sta Lucia Land (PSE:SLI) is the top developer of residential communities in the nation. With an average growth rate of 20% per year, SLI’s revenues, which are mostly derived from the sale of real estate properties, have increased more than five times in the past ten years, from P603 million in 2008 to P3.7 billion in 2017.

 

SLI announced that its net income increased by 30% to P1.1 billion from P817 million in 2017 on the back of a 15% increase in real estate sales. This rise corresponded to a 39-percent yearly improvement in net income from P31 million in 2008 to P817 million in 2017. This year, net earnings increased once more. SLI said that its net income for the first three months of the year climbed by 27% to P338 million from P265 million in the corresponding time the previous year, while total sales increased by 32% to P1.1 billion.

 

After Pandemic

How can an investor enter this market and position themselves to take advantage of potential future growth? There are basically two methods. The cautious approach is to invest in an ETF that tracks the Philippines, which will ensure risk mitigation and provide a highly liquid asset for whatever the future holds.

 

Finding a trustworthy broker that can provide you access to individual Filipino assets in the Philippine peso, a currency that has been relatively stable with relation to the US dollar and other major currencies, is the second option. These companies do occasionally list on other stock exchanges, but the liquidity and spreads there might not be ideal.

 

You will need a broker who can help you in this effort and give advice on the best long-term companies in the area of interest if you are an investor who wants to buy shares in individual companies rather than in an ETF for your country of emphasis. The most secure strategy for long-term investments lasting five years or longer is to select blue-chip stocks with established track records.

 

The following list of the top seven Philippine shares to buy is based on local recommendations. This conversation does not offer investment advice. Do your own research on each business to determine the potential best moment to purchase each.

 

  • SM Investments Corp. (SM)

This company was established in 1958 as a significant banking and property management partnership. Everything from mall, residential, and commercial development to the management of hotels and convention centers is handled by its property section. It runs 7 shopping centers in China and 36 malls in the Philippines. In its retail segment, the company sells dry goods, clothing, food, and other products at retail and wholesale prices. From more than 1,400 offices, the banking division provides capital management and other financial services. The company has a remarkable track record of returns and is the biggest on the Philippine stock exchange.

 

  • Ayala Corporation (AC)

Another significant Philippine conglomerate is Ayala. It served as a template for rivals like SM Investments when it was founded in 1834. It also emphasizes domestic and international property management as well as banking services. However, it has a wider impact because it has a strong presence in the telecommunications sector and the production of electronic infrastructure goods. The company is also well-known for its work in a variety of industries, including consultancy, agribusiness, education, human capital resource management, health, and transportation infrastructure. It is regarded as one of the Philippines’ top blue-chip corporations.

 

  • SM Prime Holdings (SMPH)

A variety of properties are managed by this corporation. It has made the decision to focus only on the Southeast Asian, Chinese, and Philippine real estate development industries. It is divided into four segments: 1) Mall, which manages shopping malls, theaters, and amusement parks; 2) Residential, which develops and sells condominiums, single-family homes, and vacation homes; 3) Commercial, which consists of office buildings; and 4) Hotels and Convention Centers, which includes 8 hotels and 5 convention centers. The biggest real estate development company listed on the Philippine Stock Exchange is this one.

 

  • International Container Terminal Services, Inc. (ICT)

This company is the number one terminal operator in the Philippines and literally has no competition on the Philippine Stock Exchange. Founded in 1987, it acquires, develops, manages, and operates container ports and terminals serving the shipping industry in the Asia Pacific region, Europe, Middle East, Africa, and The Americas. The firm operates 32 terminal projects in 19 countries. ICT is one of the top listed companies on the Philippines Stock Exchange and is primed to deliver above-average earnings during the post-COVID recovery.

 

  • Jollibee Foods Corporation (JFC)

With approximately 6,000 locations in North America, Europe, the Middle East, Africa, China, Southeast Asia, and India, this company is a titan in the fast-food sector. Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Burger King, Mang Inasal, PHO24, Hard Rock Cafe, Dunkin’ Donuts, Smashburger, The Coffee Bean & Tea Leaf, Tim Ho Wan, Tortas Frontera, Highlands Coffee, and Panda Express are just a few examples of branded restaurants. In terms of the food network, JFC is the market leader on the Philippine Stock Exchange.

 

  • BDO Unibank (BDO)

The largest bank in the Philippines in terms of assets, capital, deposits, loans, and receivables is BDO. With a foundation of about 1,500 branches, it offers all banking-related services. Banco De Oro Unibank Inc., the name under which it was established in 1967, was changed to BDO Unibank in 2011. With a strong track record, it is regarded as the industry leader in domestic banking.

 

  • Puregold Price Club Inc. (PGOLD)

In the Philippines, this company runs department shops where it sells consumer items both retail and wholesale. Often referred to as the Walmart of the Philippines, Puregold runs 403 establishments that include 20 membership warehouse clubs, 46 quick-service restaurants, and a full range of hypermarkets, supermarkets, extras, and minimarts. PGOLD was established in 1998, has a $2.5 billion market worth, and has amassed a devoted following.

 

 

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