Good time now to invest in stock market again?

The Business Mirror reported yesterday that the Philippine Stock Exchange was the best performing stock market in Southeast Asia during the 1st quarter of 2009.

From January to March 2009, the 30-company Philippine Stock Exchange index (PSEi) surged 6.05% — a remarkable performance considering the current worldwide economic recession and the losses in other Asian markets.

Compare the Philippine stock market’s performance below with the other Southeast Asian counterparts.

Performance of Southeast Asian stock markets, January-March 2009

  • Philippines: Philippine Stock Exchange Index … +6.05%
  • Indonesia: Jakarta Composite Index … +5.8%
  • Malaysia: Kuala Lumpur Composite Index … -0.48%
  • Singapore: Straits Times Index … -3.5%
  • Thailand: Stock Exchange of Thailand … -4.1%
  • Vietnam: Vietnam Stock Index … -11.07%

Only two of the six countries registered positive performance during the first three months of 2009. The Philippines is currently leading among the Southeast Asian markets, and if this 3-month performance will continue, the local bourse will most likely end 2009 with a performance similar to the full-year +21.4% performance in 2007.

This surge is currently sparking discussions among local stock traders and analysts on whether the market has bottomed out and if it’s the right time now to buy stocks again.

A friend who trades part-time shared that he already earned 12% during the past 3 weeks and, according to him, he plans to make more stock placements in the coming weeks.

On the other hand, a conservative trader I know warns that the bear market may still not be over so it’s better not to jump full-blown into the trading bandwagon again but rather to do it slowly.

Personally, I’m seeing a renewed interest of traders in the local stock market which I think signals more trading activity, and hopefully, increases in stock prices. My plan is to test the waters again starting this week but won’t do daily trading yet like I did before unless I am fully convinced the bear market has ended.

What about you? What’s your outlook on the stock market?

23 thoughts on “Good time now to invest in stock market again?”

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  2. The best time to invest in the market is when you have the money and when the stock is available at an attractive price that suits your book.

  3. Investors will pay a dear price for a cherry consensus, It is best to invest when there is fear in the market and end of the world scenarios .

  4. 9:05 am Thursday 23 July 2009 Philippine Stock Exchange 2612.38

    The main Philippine index closed near its recent high yesterday. A closer look will tell us, however, that the more widely followed stocks are still below their recent highs. I’m refering to the heavy weights like PLDT (TEL), Ayala Corp. (AC), Globetelecom (GLO), Metrobank (MBT), Ayala Land (ALI), SM Prime (SMPH), Bank of P.I. (BPI), SM investments (SM), and Banco de Oro (BDO). What has brought the index this high were Meralco and the Lopez stocks. The market have been very skewed the past few days and I think it is giving some investors a difficult time to call the broad movement.

    Nevertheless, I would not want to miss the big picture which today will be strongly affected by the possible reduction of reserve requirements for bank deposits. This will have a strong impact on short term interest rates and bond yields in general. It will also affect the Peso/US Dollar rate. Instinctively, I think that this will be good for the market because it generates more cash available for investments.

    The market has been looking overbought and is close to the upper target of its trading range, so I expect it to trade a bit softer today. I would be a buyer on weakness anyway since my longer term view is very constructive. I also believe that there will be another surge of demestic liquidity as banks reduce their funding cost over the next few months. With so much money being pumped into the system, there is no other way to go but buy good yielding stocks. After all, if we are looking at the long run, our journey has just begun. We have miles to go before we sleep.

    See other notes on

  5. According to me make a proper analysis of sectors where you want to invest and also see the compatibility and the profitability of that sectors is the perfect way to invest. The professional attitude of investment is like you should invest for long term and don’t follow the crowd.

  6. Invest In Stock Market

    Very good news is that”Good time now to invest in stock market again”.I hope this is good time for the traders who invest in stock market.I also know a website which give very good details about the stock market.for more details of invest in stock market please visit link.. .

  7. I started trading this February and I like what I’m seeing so far. I’ve gained 20% on the average so far. That’s mainly because I usually sell my shares already when I reach that level. Most say that the market has bottomed out. But there are still news looming around that the Phils. might suffer a recession this year. If that happens, the market would surely go down again. I hope it doesn’t come!

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