...Investing in the Philippine Stock Market: Worth it! A Term Paper Presented to Ms. Auracel Laplana-Alejandro Humanities Division Ateneo de Davao University In Partial Fulfillment of the Requirements for the subject ENGL 23 – Writing Across the Disciplines Second Semester, SY 2014-2015 By Ronsard-Novem N. Timan Adlin Joey Almencion February 20, 2015 Investing in the Philippine Stock Market: Worth it! By: Ronsard-Novem N. Timan Adlin Joey Almencion Thesis Statement: This paper aims to discuss that although Investing in Stock Market is volatile, risky, and the maintenance is costly, it is a secondary of income, Highly Profitable and has a Long Term Benefits. Outline: 1.0 Introduction 2.0 Background 2.1 Stock 2.1.1 Types of Stocks 2.2 Stock Market 2.2.1 Purpose and Function of Stock Market 2.3 Philippine Stock Market 2.3.1 Brief History of the Philippine Stock Exchange 2.4 Income Bracket for Investment 2.5 Attitude of Filipinos on Investments 3.0 Advantages of Investing in Stock Market 3.1 Earn more Money 3.2 Long Term Growth Benefits 3.3 Highly Profitable 4.0 Disadvantages of Investing in Stock Market 4.2 Risky 4.3 Costly Maintenance 5.0 Refutation 6.0 Conclusion Investment can be considered as a Capital for each company to start their operations. Investment is not only limited to companies, but also for individuals. It is designed to be a source of income for those who have no interest in...
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...1. EXECUTIVE SUMMARY Public Securities Corporation (PSC), a wholly-owned stock brokerage firm of the AFP Retirement and Separation Benefits System (AFP RSBS) envisions itself to be one of the top stock brokerage firms in the Philippines. The company was acquired by the AFP RSBS from a group of private individuals in 1994 with the main objective of taking advantage of the favorable prospects in the stock market and at the same time, to generate income for the mother company. Value turnover at the Philippine Stock Exchange slowed by 30% and lost P383 billion from P1.2 trillion in 1997 to P817 billion in 1998 due to the Asian Financial crisis. The decline in value turnover resulted to less commission income generated from broking services that caused both local and foreign brokers to leave the Philippine equities market and applied for temporary suspension, while others opted to cease operations totally. Political instability also discouraged investors in Philippine equities during the Estrada Administration. Illegal trading activities, such as frontrunning, insider trading and “kiting” resulted to the loss of investors’ confidence towards the regulatory bodies, the Securities and Exchange Commission and the Philippine Stock Exchange. This paper presents three frameworks to analyze the effectiveness of the company’s current strategy. Among the frameworks employed was PEST Analysis or Political, Economic, Social and Technological Analysis which was used to...
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...What are Blue Chips? Blue Chips are stocks of well-established companies with strong track records. When we refer to blue chips they are often known companies in the country. They are somewhat treated as icons in their respective industries. In terms of financial resources, blue chip companies are known to have large amount of capital. They are known to be profitable, pays regular dividends to its stock holders, and have a good rating on their debts. Image taken from oldvegaschips.com How’s the Performance of Blue Chips? Let’s take one blue chip stock for example. Jollibee Foods Corporation (JFC) has been a great performer in the Philippine Stock Market during the last decade. As you can see in the chart below, the direction of its price is generally upward. JFC is the parent of Jollibee, the country’s leading fast-food chain brand. And if you would add all Chowking, Greenwich Pizza, Red Ribbon, Mang Inasal and Burger King stores it will total to 2,510 food-chains worldwide and a total sales of 82.1 billion pesos (around 2 billion US Dollars). Generated from http://investing.businessweek.com Is it Safe to Invest in a Blue Chips Stocks? All stock market investments has no guarantee of earning you money. Stocks investment is always involved with high risks. The market can go very high but sometimes it can go crashing down. If you plan to do short-term investment only, then I might say that blue chip stocks are not really the best choice. But, is it safe to invest in blue...
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...OUTLINE Capital Market Management I. Course Number: FM 6 Credit: 3 units II. Course Title: Capital Market Management Pre-Requisite: FM2, FM4 III. Course Description: This course focuses on Capital Market Theory, its efficiency and implications. It establishes its coherence with the rest of the financial institutions within the financial environment. The course also deals with the relationship of the financial market with the government and how the latter stands a powerful influential tool. The course likewise attempts to develop the analytical ability of the students through various financial case presentations. IV. Course Objectives: At the end of the course, the students should be able to: 1. Discuss the concepts of Capital Market Theory. 2. Explain the role of Participants in capital markets 3. Know the legal and regulatory framework affecting the development Capital Markets 4. Analyze the impact and implication of Capital Market in the financial environment. 5. Develop appropriate values like frugality and care in making investment 6. Examine the role of government explain how some economic activities affect the capital market. 7. Evaluate the relevance of Capital Market in today’s business society. V. Course Outline No. of Hours A. Overview of Financial Market 13.5 1. Why Study Financial Markets? 2. Classifications and Functions of Financial Markets 3. What...
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...THE ROLE OF DIVIDEND POLICY IN STOCK PRICE DETERMINATION IN TELECOMMUNICATION INDUSTRY: THE CASE OF PLDT AND GLOBE FATIMA KAYE A. DE CHAVEZ, LORELLA A. ESPELETA and LESLIE JOY A. PATIO College of Business and Accountancy University of Batangas ABSTRACT The issue of how much a company should pay its stockholders, as dividend is one that has been of concern to managers for a long time. The optimal dividend policy of a firm may be defined as the best dividend payout ratio the firm can adopt. But, what does "best" mean in this concept? This paper is an attempt to explain the effect of Dividend Policy on the Stock Prices by taking the top two Telecommunications Company namely Philippine Long Distance Telephone Company and Globe Telecom. Other various websites were reviewed to see the significance of these dividend policies on the determination of stock prices. Charts, tables and other significant information of these two telecommunication companies which have been evaluated served as the methodology used by the researchers. The study identified that these top two telecommunication companies have different dividend policies being implemented. This difference among the two companies does not have a significant impact as long as stock price determination is concerned. The study also showed that an increase or a positive change in the company's dividend ratio gives a higher dividend among stockholders, yet several minor reductions to dividends have occurred due to capital acquisition...
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...John Paul H. Flores August 28, 2015 BSA – 4A REACTION PAPER IN ADVANCED ACCOUNTING III The article entitled “BSP prepares market for auction of term deposits” written by Lee C. Chipongian last August 24, 2015 in Manila Bulletin. It is all about the trends at the Philippine Stock Exchange (PSE) and the percentage updates regarding the stocks in different kinds and status. Based on their website, The Philippine Stock Exchange (PSE) is the only stock exchange in the Philippines. It is one of the oldest stock exchanges in Asia, having been in continuous operation since the establishment of the Manila Stock Exchange in 1927. It currently maintains two trading floors, one at the PSE Centre (Tektite), Ortigas Center in Pasig City, and one at its principal office at the Ayala Tower One in Makati City''s Central Business District. The PSE is composed of a 15-man Board of Directors with Jose T. Pardo as Chairman. Trading in the PSE is a continuous session from 9:30AM to 3:30PM daily with a recess from 12:00PM to 1:30PM. Nowadays, large portion of investors came from aged 18-30 and 31-44 years old. The age bracket whereas students, fresh graduates, newly licensed professionals, first-timer businessmen belongs. It reflects that people at their young age are financial literate and risk takers to enter to this kind of industry. Also with the help of technology or what do they called Online Trading Services you can easily established your online account and get a chance to...
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...Overview of the Hong Kong Capital Market Located in the heart of Asia, Hong Kong positioned itself to be a major international financial center of the continent. Its capital market is comprised of integrated network of institutions and markets which provide a wide range of products and services to local and international customers and investors. Hong Kong’s financial markets are characterized by a high degree of liquidity and operate under effective and transparent regulations, which meet international standards. The Government of the Hong Kong Special Administrative Region (HKSAR) abides by the principle of keeping intervention into the way in which the market operates to a minimum and has endeavoured to provide a favorable environment in which business operates. Its policy of low and simple taxation allows maximum room for business initiatives and innovation. There is a strong emphasis on the rule of law and fair market. There are no barriers of access to the market by foreign businesses and no restrictions on capital flows into and out of Hong Kong. Hong Kong’s privileged location in the Northeast Asia, on the other hand, makes it a gateway to China. Moreover, Hong Kong is situated at appropriate time zones that allow 24-hour continuous trading of foreign exchange and gold when the two markets in New York and London are closed. II. Financial Players and Intermediaries in Hong Kong Preview:A closer look at the financial markets As of July 2010, there were 146...
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...straight session Doris C. Dumlao @inquirerdotnet Philippine Daily Inquirer 6:43 PM | Tuesday, December 2nd, 2014 48 More News from Doris C. Dumlao MANILA, Philippines—The local stock barometer firmed up for the third session in a row on Tuesday despite a generally sluggish regional market. The Philippine Stock Exchange index added 12.5 points or 0.17 percent to close at 7,344.23. All counters were up as investors picked up selected large-cap stocks. Despite the PSEi’s slight rise, there were more decliners (91) than advancers (83) in the broader market. Value turnover amounted to P8.9 billion. Meanwhile, the listing of tech stock Xurpas brought excitement to the market. Its share price rose by nearly 50 percent from the initial public offering price. The PSEi was led higher by Megaworld (+2.38 percent) while RLC, AP and GT Capital all rose by over 1 percent. URC, AC, BDO, SM Prime, Jollibee, EDC and AGI also contributed to the index gains. Outside of PSEi stocks, Melco Crown (+3.56 percent) was one notable gainer ahead of the opening of City of Dreams Manila while SSI and Vista Land gained over 2 percent. On the other hand, share prices of Metrobank, Bloomberry and LTG declined. Local stock brokerage DA Market Securities said that with the market now trading right under the 7,413 major resistance and all-time high, a potential piercing of this level would indicate a more bullish bias. “However, discounted market placements and thinning trading volumes within the...
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...UNIVERSITY OF THE PHILIPPINES DILIMAN – VIRATA SCHOOL OF BUSINESS Petron Corporation Case Presentation Michelle Therese Diaz | Christian Ernest Santos | Abigail Dy | Wilson Ramos | Christian Villar 1 December 2014 Contents The Company ............................................................................................................................................. 2 1.1. Overview ...................................................................................................................................... 2 1.2. Ownership Structure .................................................................................................................. 2 1.3. Business Strategy ...................................................................................................................... 3 1.3.1. Expansion of regional presence in the Asia Pacific ............................................... 3 1.3.2. Leveraging on refining assets to achieve competitive advantage .......................... 3 1.3.3. Ensuring market dominance over the long-term .................................................... 3 The Oil Industry in the Philippines ................................................................................................... 4 2. 2.1. The Philippine Economy ........................................................................................................... 4 2.2. The Oil Industry ....................................................
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...STOCK MARKET A stock market or equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares) these may include securities listed on a stock exchange as well as those only traded privately. The term 'the stock market' is a somewhat abstract concept for the mechanism that enables the trading of company stocks. It is also used to describe the totality of all stocks and sometimes other securities, with the exception of bonds, commodities, and derivatives. The term is used especially to apply within one country as, for example, in the phrase "the stock market was up today", or in the term "stock market bubble". Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market. MUTUAL FUNDS A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most commonly applied only to those collective investment vehicles that are regulated and sold to the general public. They are sometimes referred to as "investment companies" or "registered investment companies". Many Filipinos are already investing without knowing it. Pag-IBIG Fund – a mandatory benefit for employees – is actually a type of mutual fund. The fund guarantees the refund of member's total accumulated savings, which consists of the...
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...← ASIA MARKETS ← MAY 11, 2010, 10:35 A.M. ET Chinese Stocks Fall on Tightening Fears By SHRI NAVARATNAM and LESLIE SHAFFER in Singapore and V. PHANI KUMAR in Hong Kong Hong Kong and mainland Chinese shares slid as the fear of monetary tightening by Beijing resurfaced after economic data revealed consumer and property prices continued to rise on the mainland. Most Asian markets declined. Several markets opened higher following a hefty increase overnight on Wall Street, but their advance was tempered by concerns over the implementation of the European Union's bailout package. In the Philippines, the market surged after a relatively peaceful election. "It is becoming blatantly obvious that global economic growth is not going to be smooth sailing," said Southern Cross Equities director Charlie Aitken. "Sovereign-debt issues are the ultimate 'slow fix' problem, with the quicker fix of higher taxation and slower government spending being the archenemy of equity-market investors." In Shanghai, the Shanghai Composite slid 1.9% to finish at 2647.57, while Hong Kong's Hang Seng Index fell 1.4% to 20146.51. The decline came after economic data showed Chinese consumer and producer prices increased at a faster-than-expected pace in April, while mainland lenders made local currency loans worth 774 billion yuan ($113.5 billion) in April, up sharply from the 510.7 billion yuan they disbursed in the previous month. Data released separately also showed Chinese...
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...bancassurance, and credit cards. * Offers full range banking services to large local and multinational corporations, middle market and SMEs, high net-worth individuals and retail segment. * Established in 1962 to provide financial services to the Filipino-Chinese community. * Solid track record spanning over 50 years; multi-awarded bank. * Investment grade credit rating. * Majority owned by the Ty Family whose major business interests include financial services, real estate development, power and manufacturing. History Founded in September 5, 1962, Metropolitan Bank & Trust Co. (Metrobank) has since become the premier universal bank and among the foremost financial institutions in the Philippines. It offers a full range of banking and other financial products and services, including corporate, commercial and consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking. Metrobank currently spans a consolidated network of over 1,950 ATMs nationwide; over 860 domestic branches; and 31 foreign branches, subsidiaries, and representative offices. Metrobank was incorporated in Binondo, Manila by a group of Filipino businessmen principally to provide financial services to the Filipino-Chinese community. It opened its first local branch in 1963, then expanded beyond Philippine shores only a few years after its establishment. Metrobank rolled out its first international branch in Taipei in 1970...
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...Political Stability 4 Opposition Parties 4 Economic and Financial Analysis 5 Trade History & Major Products 5 GDP Growth per capita 5 Unemployment & Price level Changes Inflation 6 Exchange Rate Innovations 7 Investments in the Stock Market 7 Investments in the Bond Market 8 Foreign Exchange Reserves 9 Structure of Industries 10 The Banking System 10 Monetary Policy / Money Supply Growth 11 Foreign Debt 12 Capital Flight 12 Asian Currency Crisis 13 Philippines before the crisis 13 What caused the Asian Currency Crisis? The effect it had on the Philippines and other countries 13 Looking into the Future 17 Prevention as the Best Form of Management 17 Some Policy Lessons From the Asian Crisis 17 Need for Great Caution About Financial Liberalization and Globalization 17 Manage External Debt Well and Avoid Large Debts 17 Manage and Build Up Foreign Reserves 17 The Need for Capital Controls and a Global Debt Workout System 18 Conclusion: Summary / Comments / Recommendations 19 Works Cited 21 Appendix A 23 Appendix B 24 Appendix C 25 Appendix D 26 Appendix E 27 Appendix F 28 Introduction The Philippines were ceded by Spain to the US in 1898 following the Spanish-American War. They attained their independence in 1946 after being occupied by the Japanese in World War II. The 21-year rule of Ferdinand Marcos ended in 1986 when a widespread popular...
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...(i) Bank; chan robles virtual law library (ii) Registered investment house; (iii) Insurance company; (iv) Pension fund or retirement plan maintained by the Government of the Philippines or any political subdivision thereof or managed by a bank or other persons authorized by the Bangko Sentral to engage in trust functions; (v) Investment company; or (vi) Such other person as the Commission may by rule determine as qualified buyers, on the basis of such factors as financial sophistication, net worth, knowledge, and experience in financial and business matters, or amount of assets under management. 10.2. The Commission may exempt other transactions, if it finds that the requirements of registration under this Code is not necessary in the public interest or for the protection of the investors such as by reason of the small amount involved or the limited character of the public offering. 10.3. Any person applying for an exemption under this Section, shall file with the Commission a notice identifying the exemption relied upon on such form and at such time as the Commission by rule may prescribe and with such notice shall pay to the Commission a fee equivalent to one-tenth (1/10) of one percent (1%) of the maximum aggregate price or issued value of the securities. SEC. 11. Commodity Futures Contracts.- No person shall offer, sell or enter into commodity futures contracts except in accordance with rules, regulations and orders the Commission...
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...Global Economic Crisis The global financial crisis (GFC) or global economic crisis is commonly believed to have begun in July 2007 with the credit crunch, when a loss of confidence by US investors in the value of sub-prime mortgages caused a liquidity crisis. This, in turn, resulted in the US Federal Bank injecting a large amount of capital into financial markets. By September 2008, the crisis had worsened as stock markets around the globe crashed and became highly volatile. Consumer confidence hit rock bottom as everyone tightened their belts in fear of what could lie ahead. The current financial crisis is the worst the world has seen since the Great Depression of the 1930s. For younger generations, accustomed to mild recessions of the new phase of globalization, the misery of the Great Depression is hitherto nothing more than a distant legend. However, the collapse of two Bear Stearns Hedge funds in summer of 2007 exposed what came to be known as the subprime mortgage crisis, reintroducing the world to an era of bank failures, a credit crunch, private defaults and massive layoffs. In the new, globalized world of closely interdependent economies, the crisis affected almost every part of the world, receiving extensive coverage in the international media. “In an Interconnected World, American Homeowner Woes Can Be Felt from Beijing to Rio de Janeiro,” observed the International Herald Tribune at the onset of the crisis. “Chinese Steelmakers Shiver, Indian Miners Catch Flu,” noted...
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