More Filipinos have invested in the stock market as they take advantage of the decline in share prices amid the coronavirus disease 2019 (Covid-19) pandemic, while some plan to increase their stock exposure in the next six months, a report indicated.
“A lot of people were not spending so much (because of lockdown) so a lot of what they were able to earn, they are throwing back into different types of investments,” Juanis Barredo, chief technical analyst at online stockbroker COL Financial Group Inc., said in a briefing Thursday.
Barredo said those who started investing in stocks when the market bottomed in March last year likely made “good money” as it soared back last November.
The Philippine Stock Exchange index (PSEi) plunged to 4,000-level in March 2020 during the start of the implementation of enhanced community quarantine. It regained the 7,000-level starting Nov. 10 but it closed Friday at the 6,600 level.
“And for that time, it created wealth, people talked about it, they drew in many people. That’s why I would say, the account openings just jumped like anything to all the online brokers,” he said.
Barredo also underscored the aggressive trading strategies implemented by these new investors despite the Covid-19 pandemic.
“Before, people would buy the safest stocks because they were so scared. Now, they come in with so much aggressiveness that is why, we have seen a different type of retail investors,” he added.
COL Financial chief equity strategist April Lynn Tan said the Group opened 72,000 new accounts in the first nine months of 2020 alone, bringing end-September with 404,000 customer accounts.
“During the pandemic, when we began the lockdown, that was the time like all of a sudden they started (opening) the accounts,” she said.
Tan said the stockbroker only gained 40,000 new accounts in 2019 as against 2018.
Barredo said investors aged between 22 to about 30 comprise most of these new accounts.“We are breaking records on a weekly basis in terms of activity,” COL Financial president Dino Bate said. SOVEREIGNPH