Breakthrough Stocks That Soared After The Pandemic (2020 To Post Pandemic) – Find Out Why

The Philippine stock market experienced a tumultuous ride during the early stages of the COVID-19 pandemic, mirroring trends seen across global markets. The Philippine Stock Exchange Index (PSEi) plummeted sharply, shedding over 40% of its value between January and March 2020, reaching its lowest point in more than a decade. In a single day on March 19, 2020, the PSEi fell by nearly 13%, marking one of its steepest declines in history.

However, what followed was an equally remarkable turnaround. After hitting rock bottom, the market began a steady climb, with investors regaining confidence as economic activities gradually resumed. By the end of 2020, the PSEi had recovered a significant portion of its losses, driven by sectors that adapted quickly to the new normal.

Just as the U.S. market saw tech giants lead the rebound, the Philippine market’s recovery was fueled by companies in essential industries. Consumer staples, telecommunications, and healthcare sectors showed resilience, while others like real estate and tourism took longer to bounce back.

Among the notable performers were Puregold Price Club, Inc. (PGOLD), which benefited from increased consumer spending on groceries, and Globe Telecom, Inc. (GLO), which saw rising demand for connectivity due to remote work and online learning. Even the banking sector, represented by BDO Unibank, Inc. (BDO), demonstrated stability despite initial concerns over loan defaults.

This swift rebound highlighted the market’s ability to adapt and underscored the importance of resilience in businesses navigating unprecedented challenges. The Philippine stock market’s recovery story serves as a testament to the enduring strength of essential industries and the adaptability of companies during times of crisis.

During the COVID-19 pandemic, certain Philippine companies demonstrated resilience and even growth, similar to how some U.S. stocks like ConocoPhillips, Blackstone, and Eli Lilly performed well during the same period. Here are a few Philippine companies that not only survived but thrived during the pandemic:

Puregold Price Club, Inc. (PGOLD)

As the largest supermarket chain in the Philippines, Puregold experienced increased demand for grocery items, a sector considered recession-proof due to its essential nature.

Price per share, March 10, 2020: ₱38.50

Price per share, May 20, 2022: ₱45.00

Difference in $: ₱6.50

Difference in %: 16.88%

Century Pacific Food, Inc. (CNPF)

Known for brands like Century Tuna and Argentina, Century Pacific saw steady demand for its canned and processed food products, catering to consumers stocking up on essentials during lockdowns.

Price per share, March 10, 2020: ₱14.00

Price per share, May 20, 2022: ₱28.00

Difference in $: ₱14.00

Difference in %: 100.00%

Globe Telecom, Inc. (GLO)

With increased reliance on internet services for remote work and online education, Globe Telecom experienced heightened demand for its telecommunications and broadband services.

Price per share, March 10, 2020: ₱1,850.00

Price per share, May 20, 2022:₱2,200.00

Difference in $: ₱350.00

Difference in %: 18.92%

Manila Electric Company (MER)

As a utility provider, Meralco maintained stable operations, with consistent demand for electricity as people stayed home during quarantine periods.

Price per share, March 10, 2020: ₱280.00

Price per share, May 20, 2022: ₱300.00

Difference in $: ₱20.00

Difference in %: 7.14%

Manila Water Company, Inc. (MWC)

Providing essential water services, Manila Water continued operations with steady demand, underscoring the resilience of utility companies during economic downturns.

Price per share, March 10, 2020: ₱12.00

Price per share, May 20, 2022: ₱18.00

Difference in $: ₱6.00

Difference in %: 50.00%

San Miguel Corporation (SMC)

As one of the Philippines’ largest and most diversified conglomerates, SMC has interests spanning beverages, food, packaging, fuel and oil, power, and infrastructure. During the pandemic, while some sectors faced challenges, others, particularly in food and beverages, saw steady demand, contributing to the company’s modest stock appreciation.

Price per share, March 10, 2020: ₱95.50

Price per share, May 20, 2022: ₱110.00

Difference in $: ₱14.50

Difference in %: 15.18%

Ayala Corporation (AC)

Ayala is a premier conglomerate with diversified interests in real estate, banking, telecommunications, and utilities. The company’s adaptability and strategic investments in essential services allowed it to navigate the pandemic effectively, leading to a significant stock price increase.

Price per share, March 10, 2020: ₱500.00

Price per share, May 20, 2022: ₱750.00

Difference in $:₱250.00

Difference in %: 50.00%

Jollibee Foods Corporation (JFC)

As the country’s leading fast-food chain, Jollibee faced initial setbacks due to lockdowns. However, its swift pivot to delivery services and international expansion efforts helped it recover, resulting in a notable rise in its stock price.

Price per share, March 10, 2020: ₱135.00

Price per share, May 20, 2022: ₱220.00

Difference in $:₱85.00

Difference in %: 62.96%

SM Investments Corporation (SM)

With interests in retail, banking, and property, SM faced challenges, especially in its mall operations due to lockdowns. Nonetheless, its strong retail and banking divisions provided stability, leading to a modest stock price increase.

Price per share, March 10, 2020: ₱850.00

Price per share, May 20, 2022:₱950.00

Difference in $: ₱100.00

Difference in %: 11.76%

BDO Unibank, Inc. (BDO)

As the largest bank in the Philippines, BDO faced challenges with loan defaults during the pandemic. However, its robust capital base and diversified portfolio allowed it to weather the storm, resulting in a moderate stock price appreciation.

Price per share, March 10, 2020: ₱120.00

Price per share, May 20, 2022: ₱140.00

Difference in $: ₱20.00

Difference in %: 16.67%

Lessons from the Philippine Stock Market’s Recovery

The Philippine stock market’s journey during and after the pandemic offers crucial insights for investors. The resilience demonstrated by certain companies reveals patterns that can guide investment strategies, particularly in navigating times of crisis. Several key lessons emerged from this period:

Contents

1. Resilience in Essential Sectors

One of the most striking lessons from the pandemic is the importance of investing in essential industries. Companies involved in food, utilities, telecommunications, and banking proved to be some of the most stable investments during the crisis. As daily life shifted indoors, the demand for basic necessities such as electricity, water, food, and internet connectivity surged. Firms like Puregold, Meralco, and Globe Telecom stood out for their ability to maintain operations while providing indispensable services to the public. These sectors acted as defensive strongholds, offering stability and steady returns even when other industries faced severe downturns. In times of crisis, essential sectors provide a safety net for investors seeking to safeguard their portfolios.

2. Adaptability Matters

The pandemic accelerated digital transformation across various industries, and businesses that quickly embraced change performed significantly better than those that didn’t. Companies like Jollibee and SM Investments rapidly adapted by enhancing their digital infrastructure, expanding online delivery services, and optimizing e-commerce platforms. Globe Telecom’s robust digital infrastructure also allowed it to meet the sudden spike in demand for connectivity. These swift adaptations not only helped businesses survive but also enabled them to thrive as consumer behavior shifted toward digital-first interactions. The ability to pivot quickly in response to unforeseen challenges proved to be a critical factor in determining long-term success.

3. Long-Term Investing Pays Off

Market volatility during the pandemic tested the patience of many investors. However, those who stayed the course and held onto strong companies saw their investments grow significantly as the market rebounded. Stocks like Ayala Corporation and BDO Unibank experienced sharp declines in the early days of the pandemic, only to recover and deliver solid returns over the next two years. This highlights the importance of long-term investing and resisting the urge to panic-sell during market downturns. History has shown that markets tend to recover over time, and patient investors are often rewarded for their resilience.

4. Conglomerates Provide Stability

Another key takeaway is the inherent stability that large, diversified conglomerates offer during uncertain times. Companies like Ayala Corporation, SM Investments, and San Miguel Corporation weathered the storm better than most, thanks to their diversified portfolios across multiple industries. When one sector struggled, other parts of their business provided a cushion, ensuring steady cash flow and reducing overall risk. This diversification allowed them to recover more quickly and remain attractive to investors looking for stability amid market turbulence. Investing in conglomerates can serve as a hedge against market volatility, providing a more balanced risk-reward profile.

Overall, the Philippine stock market’s performance during and after the pandemic underscores the value of resilience, adaptability, patience, and diversification. Companies in essential industries remained stable, while those that embraced digital transformation flourished. Investors who adopted a long-term mindset and trusted in the market’s ability to recover were rewarded with substantial gains. Furthermore, the crisis reinforced the importance of large, diversified conglomerates that could navigate economic disruptions with greater ease.

As the Philippine economy continues to rebuild, these lessons remain as relevant as ever. For those looking to invest in Philippine stocks, focusing on resilience, innovation, and long-term growth could be the key to weathering future economic uncertainties and unlocking sustainable profits. The pandemic may have been an unprecedented event, but the strategies that led to recovery offer a timeless guide for smart investing.

REGISTRATION PROCESS:

Step 1: Register Online

Visit the Philstocks PH website.
On the homepage, click on “Register”.
Choose the type of account you want to open (e.g., Individual, Joint, Corporate).
Fill out the online registration form with your personal details, including your full name, email address, mobile number, date of birth, nationality, and address.
Create a username and password for your account.
Review and agree to the terms and conditions.

Step 2: Upload Your Valid IDs and Take a Selfie for Verification

Prepare digital copies or clear photos of the required identification documents.
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Upload the photos or scanned copies of your valid IDs as instructed on the registration form.
Take a selfie with your valid ID for identity verification purposes.
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Step 3: Fund Your Account

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Navigate to the “Fund Account” section.
Choose your preferred method of funding your account (e.g., bank transfer, online payment).
Follow the instructions provided to deposit funds into your trading account.
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