Investment capabilities of the Philippines and its most liquid options

The Philippines is one country that has been through different kinds of trials. For a relatively small country, it has weathered martial law under Ferdinand Marcos, transition to democracy, Asian to global financial crisis, and other worse storms, may it be economic or political. However, with the rise of Rodrigo Duterte in the last May 9 Philippine elections, most experts believe that the economy should continue to perform well.

Current Gross Domestic Product (GDP) growth

  • 2002-2009 – 5 per cent average
  • 2010-2015 – 6 per cent average
  • This year – 6.8-7.8 per cent (Government target)

This ‘Pearl of the Orient Seas’ shows signs of growth in recent years with its business process outsourcing industry; a sector has been one of the most important contributors to the country’s economic story. Then again, the BPO industry is a win-win agreement between all parties involved. Large companies take advantage of lower costs for back office and customer care activities in the Philippines. In return, more jobs are created which means ability to buy and consumers help strengthen any country’s economy. The local consumer economy has also been sustained by overseas Filipino worker remittances which up to this day have remained strong and are important contributors.

The problem though is not everyone gets affected by this growth. Some areas still do not have financial freedom that other areas have. Even most of the provinces have yet to be developed but Philippines as a whole has a lot to offer in the business world. Here are the most liquid options in the Philippines that you can choose from:

iShares MSCI Philippines Investable (NYSEARCA: EPHE)

Inception date: September 2010
Exchange traded funds (ETFs): 0.64 per cent expense ratio
Net assets: US$300 million (as of late April)
Average trading volume: close to 300,000 shares per day (for the last 3 months)

PLDT or Philippine Long Distance Telephone (NYSE: PHI)

Founded: 1928
Invests in other sectors of the economy such as Meralco which is the largest electric distributor in the Philippines
Market cap: around US$8.5 billion

Average trading volume: around 100,000 shares per day (for the last 3 months)
If you’re looking through investment portfolios, don’t skip the Philippines’. This thriving country which was referred to as ‘the sick man of Asia’ before is getting healthy and may just surprise you in the coming years.

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About New Alchemy

New Alchemy Limited is an innovative European-owned, Philippine-based KPO and BPO company. We combine years of professional expertise, 24/7 quality service, reliability and flexibility, competitive pricing, dynamic strategies, and customized strategy options to effectively connect our clients to their target market.

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