INFOGRAPHIC: Profile of the Philippine Stock Market Investor



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.


Latest news about Filipino stock market investors:


Gender

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%.

Age

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.

Location

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.

Income

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.

Profession

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.

2011StockMarketInvestor

Vs. stock investors in Singapore, Japan, Australia, etc.

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.

Check out these other awesome, useful posts about stock trading!

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more
blank

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

4 thoughts on “INFOGRAPHIC: Profile of the Philippine Stock Market Investor”

  1. It’s actually close to 0.5% only. Of course you wouldn’t expect the very young to invest. But this just shows us that we can expect more people to come in. Those that have higher percentages of their population investing in stocks are rich countries.

    As the Philippines gets richer, this will happen here also. The economy is on the rise. I believe this is starting to happen now. Question is, how can we take advantage of the future knowing that?

    Reply
  2. Brilliant guide thanks! Seems to work perfectly well using the latest versions of wordpress as well (3.3)Made the code a lot cleaner as mentioned and seems to have made life easier when trying to implement the comments form into side areas ect. (Had a nightmare with previous use of the normal code)

    Reply
  3. Sana gawing seryosong programa ito ng Gobyerno, sa panimula, ang mga kasapi ng SSS na 45y/o pataas na malapit na ring mag pension ay himukin na i- loan ang 50,000 na ibabawas sa kanya kung mag-aavail na ng claim sa pension ngunit ipapasok sa stock investing sa piling kumpanya lamang tulad ng PNOC.
    Panahon na upang mamamayan naman ang tumulong sa pagpapalago ng ekonomiya ng ating bansa. Reserbang langis ang dapat na pagtuonan sa panimula.

    Reply

Leave a Comment