Investing In The Philippines Stock Market

[PaulB]

I have just opened an account to invest in some shares in the Philippines Stock market. I have set myself rules such as not to invest more than I can afford to lose and also to spread the risk of my portfolio.

 

Due to the Chinese economy meltdown it was a good time to start investing a few good (lucky) choices have enabled me to reach a 25% increase in portfolio balance. I know this can go up and down so not celebrating just yet.

 

I will continue to add a bit into my trading account each month and see how it goes. For sure it will not be a retirement fund and thank goodness I don't need it to be but what it has done is make me more aware of things going on in the Philippines and the world that can affect the Philippines.

 

I am just wondering if anyone else has experience of trading in the local markets and perhaps willing to share any tips.

 

 

[Dave Hounddriver]

I have no experience and am naturally curious to see the results of your endeavors.

 

I have noticed the Philippine stock market has had a pretty good ride over the last 5 years so best of luck to you and I hope you will keep us informed regularly.  :thumbsup:

[PaulB]

Dave I will keep you updated on any success and of course failures. I am approaching this as the turtle! Slow and steady. It could end up as my hobby when I come over full time in 4 years. I have a vision of me looking at the laptop sat in my Nippa Hut whilst drinking a cold San Mig light! 

 

Keep you posted.

Oh yes and cursing as slow internet!

[mogo51]

Yes  good luck and will be reading with interest.  I have a modest Super fund in Oz that I have only been in for 3 years regrettably, as I shouldhave gone into it a lot earlier.  It has average 14% tax paid over that period and my sister has been in it for many years like 20 or something and she has averaged 9.5% tax paid through all the big ups and downs.

You have to be for the long term unless you are a speculator and then you have to be very attune to what is happening on a daily  basis.

Not for me.  My shares are 50/50 Oz/International shares.  Expect they are down a bit at the moment due to China etc. but I just let it bubble along and I will start to draw an income stream from it next year.. A guy who was rather cluey on it some years back told me to not be reactionary if I ever invested maybe something to keep in mind.

[Thomas]

I have no experience and am naturally curious to see the results of your endeavors.

 

I have noticed the Philippine stock market has had a pretty good ride over the last 5 years so best of luck to you and I hope you will keep us informed regularly.  :thumbsup:

I haven't done any trades there either, but plan to when I live there, if I have any money, which I don't use for other investments for the moment.

 

1 - 2 years ago I compared the Philippine stock market back from before the fall 2008. It droped much too 2008, but the average was much better than in USA and Europe. The economy in general has developed much better too in SouthEast Asia. But I haven't checked if the earnings in the companies has developed as good as the stock market index or if it is a buble.

Nasdac is SURE a buble, around doubled since the TOP level BEFORE the fall 2008 and the earnings haven't improved that much...

A TRADITIONAL valuing of companies was 3 times the year earning* plus the "junk value" (=sell assets as e g buildings and mashines separate). Nowadays many stock buyers find it interesting to buy for 20 times the earning !!!  :1 (103):

I use the old valuing type still, so it's hard to find anything I find worth buying  :mocking:

 

*3 times the yearly earning, BUT adjusted up for investment for the future as developing and exbantion costs.

When the company become ready to start earning much better (e g by a biger developing work is ready) then I count with 3 times the earning I EXPECT it will be.  It's in such type I have found almost all my winners, the few others have been when the market have overreacted.  But NOTE. I find at least the "western" stock market valued much to high STILL after the drop during the last days.  I haven't checked SE Asia enough to judge if that's to high still too, but in the long run I expect SE Asia will have a much better future anyway.

 

LOCK UP! concerning the Philippine market. Most of it is DOMINATED by a few Filipino families. So it's risk they manipulate share prices. E g they can try to keep the prices UP in their own companies to avoiding losing face, but they can give up too and let it fall...

[OnMyWay]

I'm not sure about U.K., but a U.S. citizen will have to pay U.S. taxes on any profits,  I'm not sure what PH does as far as taxes.

 

I've been thinking about opening up some long term accounts in my kid's names, and contributing a set monthly amount.  

[chris49]

Good idea and not a bad way to convert your money and pull it out in pesos later. Hopefully over the longer term you will get growth, and I agree on the learning about the Philippines.

 

What currency are you in primarily Paul? US Dollars or Sterling? I reckon (considering your situation, your age), you stick about $5000 US or even $10k in a US Dollar Account at BDO or BPI.  Maybe in your wife's name, if yours is not accepted. When you come to do transactions here, living here later, a favorable banking record is going to make things a lot easier for you later on. Also pulling dollars off your own account as you might do later, avoids bank charges and always ensures a good rate.

[stevewool]

Good luck, i just cannot afford to lose any of the money in my savings plans, better knowing i have £xxxxxx without worrying that it may go down to £xx , i dont want millions but just enough to be happy

[Thomas]

I'm not sure about U.K., but a U.S. citizen will have to pay U.S. taxes on any profits,  I'm not sure what PH does as far as taxes.

 

I've been thinking about opening up some long term accounts in my kid's names, and contributing a set monthly amount.  

In general Phils want to tax all things EARNED in Phils

(except from ABROAD stationed companies for interests, lease (?) licences and perhaps royalty.)

 

Some countries have tax deals though with Phils to avoid double taxation, saying some are taxed in the home country, and if Phil tax something the home country want to tax, then the tax paid in Phils are deductable in the home country.

 

Taxes in Phils:

Dividends:  10 %

 

 

How do you English speaking interpret this?

10 % at the net capital gain during the year.   (When trading shares at the stock market.)

 

10 % at the net profit or the net revenue?    Logicaly it's at the profit, but we never know if Phil laws are logical   :mocking:

[Gerald Glatt]

Dividends:  10 %  

 

Dividends are paid so taxed in that year.

 

I thought income earned outside the US that was taxed was exempt until a certain amount was earned. 

 

Does the Philippines have a 10% capitol gains tax?  That is a bargain