PSE reaches a new all-time high

For the first time, the Philippine stock market advanced beyond 5600 points. Exciting times! I wonder how long will this growth be sustained. Still need to be vigilant on the looming US fiscal cliff issue and EU's never-ending financial problem.

Seems our economy is booming. Philippine economy grew by 7.1%, beyond the 5.5% expectation and GDP is up 6.5%, already beyond the government's target of 5-6% by year-end. The Philippines was recently  included in the Newly Industrialized Country (NIC) category, which is a term for a country that is beyond a developing one but does not yet satisfy the signs of a developed country; it's like a 2nd-world country lol. So far, inflation is under control at 3.1% last October. These are good signs; more reasons to invest and believe in our country!

I'm happy today because two of my stocks are on the positive side: Manila Water (MWC) and SM Prime Holdings (SMPH). The golden question is when should I sell to realize my profit?

BPI raises SDA minimum to 500K

In my previous post, I wrote about investing in SDA, and choosing BPI because it had the lowest minimum investment which was only P50,000. Now, BPI announced it is raising the minimum investment to P500,000 effective this December. And my investment is below that amount.

What will happen to enrolled accounts with less than 500K

I talked to a BPI representative, and she said that the amount will placed to the settlement account if the enrolled amount is less than the minimum. It will not be re-enrolled this December. My investment is due every 28th of the month; she said that it is eligible for one last iteration.

What's the next best thing to do

I'm not sure yet, whether to just to invest it in bond or place it somewhere else. Then it will be subject to a holding period, where there is a pre-termination fee should you decide to withdraw it earlier than the required period.

[Update 1/13/2013] BPI Maxi Saver may be the next best thing, which shares similar features with SDA. It is liquid, in fact there's no lock-up period and low risk which is ideal for emergency funds. 1.25% interest + 1% bonus if you don't withdraw any money.

Blue Chip Companies in the Philippines

You can check the list of Blue Chips here:
http://www.pesobility.com/stock/blue-chips


Last week, I started investing in the Philippine stock market. So far so good, I invested in several blue chips MWC, SMPH, and MEG in which some went up and some went down. The index of Philippine Stock Exchange currently consists of the 30 major companies. I've added the list in the community wiki. These are the blue chips of the Philippines. They're relatively a better bet than other stocks because they tend to be more stable.

I gained 1.3% so far, and I believe it's still beginner's luck. 1.3% may seems small, but compared to how much a bank savings account make? Like 0.5% per year?

It was quite an experience, but I still have tons more to learn. I don't know how to read financial statements or compute the actual price/earning ratio. I need to research more about the fundamental and technical analyses. These are the two main schools of thought when it comes to investing in stocks; fundamental teaches you what to buy and technical teaches you when to buy.

I will continue to write more about my experience in the stock market soon, but as for now, I need to sleep.

Ayala Corp. (AC) Bond Issued (7 years)

Ayala Corp. (AC) has issued a 7-year bond at 7.45% interest. 7.45% is relatively low; e.g. SMC Series 2A Preferred shares issued this year were 7.5% for 5 years.  However, considering how low the government bonds are right now, some may also favor this deal from AC.

Would I lend AC money? No. Even though AC is a good company, this is not for me. Maybe if I have millions of parked money, but for a small time investor like me, this is not the place where I put my money into. Note that taxes and fees are still excluded in 7.45%, not sure what is the net after this, maybe ~5+%.

If you are interested, the offer will be available from BPI, BDO, First Metro (investment arm of Metrobank), HSBC., ING Bank Manila, RCBC, SB Capital Investment Corp., and Standard Chartered Bank.

Free Seminar from Citisec

It's a good introduction to investing in the Philippine stock market. It's for people who have minimal or no market experience. Mr. Aya Laraya talked about the current and previous state of our market, how to effectively pick the right company for beginners, the basic techniques and analysis in trading and other information about how to get started in investing in the Philippine Stock Exchange.

The seminar is free, but you need to be registered online. It's held in the 24th floor, East Tower, of the Philippine Stock Exchange (Tektite). The easiest way to get to Tektite is you go to SM Megamall. At the back of Mega B, ride an FX with the Tektite sign and ask the driver to drop you off in Tektite building, the fare is 12 Pesos (as of writing).

Personally, I would suggest it for people who don't have a clue about stocks. The seminar won't teach you the technical stuff of trading, nor stock analysis, it's just an introduction. Mostly, the speaker will talk about making your investment in the stock market as your piggy bank, how to invest safely and steadily by using the technique called Peso-Cost Averaging. More on this on later posts.

Be Careful of Investment Scams

Just heard in the news that people were scammed by Aman Futures Group Phils. Inc. It's similar to double-your-money scams, but this firm promises a guaranteed 15%-40% return of investment and they issue post-dated checks. Even at the minimum 15%, people who really invests know that this guaranteed interest is huge!