INFOGRAPHIC: Profile of the Philippine Stock Market Investor
August 17, 2012
Majority of local stock market investors are males aged 30-59 years old, residing in Metro Manila, and earning an annual income of less than P500,000.
This is according to a 2011 report on the “Profile of Filipino Stock Market Investors” published by the Philippine Stock Exchange (PSE).
Here is a summary of the basic demographic traits of Filipino stock investors. The visual infographic is available below.
The Philippine stock market is still dominated by male investors. More than 58.5% of total retail stock investors are males, while females account for only 41.5%.
Investing in the stock market requires a certain level of maturity, both emotional and economic. This maturity goes with age, which explains why almost 3/4 of total retail accounts, or 71.4%, are owned by investors between the ages of 30 and 59 years old. The senior or retiring population, aged 60 and above, comprise about 18.5% of total stock market accounts. Young stock investors less than 30 years old are also starting to go into stock market investing, comprising 10.1% of total retail accounts.
Retail stock market investors are still primarily based in Metro Manila, accounting for the biggest chunk of 76.8%. Investors from the rest of Luzon are next, comprising 13% of total accounts. Around 6.1% of investors are from the Visayas while 2.3% are from Mindanao. Filipinos abroad, primarily composed of Overseas Filipino Workers, also invest in the stock market representing 1.9% of total stock market accounts.
Contrary to common notion, bulk of local stock market investors are not the super-rich but your average-earning Filipino. More than 37.4% of accounts are owned by Filipinos earning an annual income of less than P500,000 (less than $12,000 annually). This shows a growing risk appetite of the average Filipino investor who, despite relatively low incomes, still decide to venture into the stock market. People earning more than P1 million per year represent 34.5% of total accounts while those earning between P500,000 and P1 million annually comprise 28.1% of total retail stock market accounts.
The occupation or source of income of the Filipino stock market investor is diverse. Almost 1/3 or 30.4% of accounts are owned by Filipinos in the Services sector. Around 1/4 or 24.7% are owned by Professionals such as lawyers, doctors, accountants, engineers, and the like. Close to 20% of stock market accounts are owned by Self-employed Filipinos, while the rest of accounts are owned by those who are Retired or working in the Finance, Industry, Government, or Agriculture sectors.
According to the PSE, there are a total of 478,362 retail stock trading accounts owned by Filipinos. This represents barely 1% of the Philippine population.
Stock market investors in Singapore, Japan, Australia, and other Asian countries
In contrast, other Asian nations have higher percentages of their population invested in stocks — signaling either a higher risk appetite or a more financially mature population or both.
In Singapore, more than 33% of their population invest in the stock market. In Japan and Australia, around 25% of their population are invested in stocks; in Malaysia, 18%; in Hong Kong, 17%; and in Korea, 10%.
The “Filipino Stock Market Investor Profile” report is based on a survey conducted by the PSE among 133 active trading participants in the Philippines as of the end of December 2011.
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