THE total stock market accounts in The Philippine Stock Exchange Inc. (PSE) reached 1,228,038 in 2019, 12.7 percent more than the 1,089,413 accounts in 2018 boosted by the growth in online accounts.
The annual Stock Market Investor Profile (SMIP) report of the PSE showed that the number of online accounts grew by 25.0 percent to 782,118 in 2019 from 625,763 accounts in 2018. Online accounts made up 63.7 percent of the total accounts while the remaining 36.3 percent were investor accounts with traditional stock brokerage firms.
“Online accounts have been the reason for the steady rise in total stock market accounts in the last 10 years. The shift in trading format preference of investors has encouraged stock brokerage companies that cater to retail investors to start offering online trading services to their clients,” PSE president and chief executive officer Ramon Monzon said.
“While the data we have now is from 2019, we expect the online investor population to increase in 2020 mainly due to investors opening online accounts during the community quarantine period and as investors participate in initial public offerings through PSE EASy (Electronic Allocation System),” Monzon added.
The report cited a 12.9 percent and 6.4 percent increase in the number of retail and institutional accounts to 1,199,565 and 28,473 respectively.
Retail investors made up 97.7 percent of total accounts while the remaining 2.3 percent was accounted for by institutional investors. Local investors comprised 98.4 percent of total stock market accounts, with foreign investors owning the rest.
The gap between the number of male and female investors has further narrowed with the former owning 50.2 percent and the latter 49.8 percent of total retail accounts. In 2018, female investors accounted for 48.4 percent of total market accounts.
Investors who are between 30 to 44 years old had the biggest share in total accounts among four age groups at 45.5 percent.
Investors with an annual income of less than P500,000 had the biggest share in total accounts at 59.4 percent.
This is, however, lower compared to its 62.4 percent share in 2018. Investors earning more than P1 million annually cornered 21.5 percent of total retail accounts, an improvement from its 2018 share of 16.6 percent. Those with an annual income of P500,000 to P1 million accounted for 19.1 percent of total retail accounts, lower than the 21 percent share it had in 2018.
In terms of location, most investors are based in Metro Manila. They accounted for 75.7 percent of total retail accounts, a big jump from the 62.2 percent share they had in 2018. The investor count from four other areas was reduced in 2019.
For Luzon, the share of investors was at 13.9 percent in 2019 from 21.5 percent in 2018; for the Visayas it was 5.3 percent versus 8.9 percent, and for Mindanao it was 3.3 percent compared to 4.4 percent.
The share of investors overseas to total account was recorded at 1.8 percent in 2019 from three percent in 2018.
Top 5 countries
The top five countries with the most number of retail investors in 2019 were the United Arab Emirates, Japan, United States of America, China and Singapore.
“We hope to see an increase in investors based in the provinces and overseas in the coming months, especially as more online stock brokerage firms validate client applications through video conferencing platforms, eliminating the need for a face to face KYC (Know Your Customer) procedure,” Monzon explained.
“With the stock market still trading way below pre-Covid levels, we may see new investors who are looking for good buying opportunities open trading accounts. This may also help prop up our investor count for the year,” Monzon added. (PR)