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DoE taps Australian firm to explore Philippines’ hydrogen potential

The Department of Energy (DoE) and Australian-based research firm Star Scientific Ltd. inked an agreement to study hydrogen as a possible source of power for the country’s energy needs.

In a press release on Friday, the DoE said it had signed the memorandum of understanding (MOU) with Star Scientific Limited on Wednesday.

Star Scientific is known for its patented Hydrogen Energy Release Optimiser (HERO) technology, which converts hydrogen into heat without burning.

The MOU allows the Philippine government and the Australian firm to partner up in studying on how using hydrogen power could help the Philippines achieve energy independence and significantly reduce the country’s carbon dioxide emissions.

The DoE and Star Scientific will work together to find ways that would allow the latter’s HERO technology to convert existing power facilities into unlimited zero-emission hydrogen assets; and increase the viability of distributing emission-free power through a supercritical carbon dioxide grid network, among others.

“We are hoping to be able to utilize hydrogen as fuel for electric vehicles and as part of the country’s future energy mix,” Energy Secretary Alfonso G. Cusi who was one of the signatories of the MOU, was quoted as saying.

He added that there was a vast potential for hydrogen power in the country, reiterating that it was considered as the “fuel of the future.”

On Star Scientific’s website, the firm’s global group chairman Andrew Horvath said he was proud that an Australian innovation – the HERO – had captured the attention of a national government.

“This agreement with the Department of Energy of the Republic of the Philippines represents a significant milestone in the development of the global hydrogen economy,” he was quoted as saying.

“This will represent the largest single boost to Australia’s role in developing the global hydrogen economy, heralding a new era of research, development and deployment in the manufacture and installation of all parts of the hydrogen supply chain. We are particularly grateful and excited to be part of the next phase of the Philippines’ economic growth,” he added.

DoE data showed that coal comprised 44.5% of the country’s power mix in 2015, followed by natural gas at 22.9% and geothermal at 13.4%. At present, hydrogen is not part of the country’s generation mix.

Italpinas hikes capital stock

Real estate developer Italpinas Development Corp. (IDC) on Friday said it increased capital stock to P700 million from P378 million to fund potential business opportunities.

“The proposed amendment to increase the authorized capital stock will provide IDC more flexibility for any potential business opportunities in the future that would need sufficient authorized and unissued shares that can be issued promptly,” the company said in a disclosure.

Stockholders approved the proposal on a Jan. 22 meeting.

The firm also approved the declaration of stock dividends of P100 million up to P230 million in favor of all stockholders on record, proportional to their shareholdings.

IDC posted a 28% increase in net income to P46.74 million as of the third quarter last year, generating revenue largely through two ongoing residential projects.

The company last month signed a deal to get a P250 million new term loan with the Development Bank of the Philippines to imprvoe its operating capital.

The Citta Verde twin towers of IDC’s Primavera City in Cagayan de Oro City will be ready for occupancy in the first quarter of 2021, while the Citta Bella will be completed in the second quarter of 2022.

Shares in Italpinas on Friday closed at P2.96 apiece, up 2.78% or eight centavos. —Jenina P. Ibañez

BSP sees January inflation at 3.3-4.1%

HEADLINE INFLATION likely settled between 3.3% to 4.1% in January on fuel, energy and food price hikes as well as higher excise taxes on consumer goods, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

“Higher prices for fuel and meat as well as increased Meralco (Manila Electric Co.) power rates and excise taxes on alcoholic beverages and tobacco contributed to upward price pressures during the month,” BSP Governor Benjamin E. Diokno said in a Viber message to reporters on Friday.

Mr. Diokno said the central bank sees a point inflation of 3.7% for this month, closer to the upper end of its 2-4% target for the year. This would also be faster than the 3.5% print logged in December as well as the 2.9% seen in January 2020.

Prices of gasoline, diesel and kerosene went up by P2.15, P1.55, and P1.50 per liter, respectively, during the month, data from the Department of Energy showed.

Meanwhile, Meralco said earlier this month that the January electricity rate is up P0.2744 per kiloWatt-hour (kWh) compared to its December level. A typical household consuming 200 kWh is expected to pay an additional P55, while households consuming 300 kWh, 400 kWh, and 500 kWh will see bill increases of P82, P110 and P137, respectively.

Food prices have also been increasing due to the supply shock caused by the African Swine Fever, with pork prices hovering around P400 per kilo and a whole chicken costing P200, based on latest data from the Department of Agriculture.

On the other hand, Mr. Diokno said stable rice prices, lower prices of selected fish and vegetables, and the sustained appreciation of the peso could offset these cost increases.

Data from the Philippine Statistics Authority showed prices of well-milled rice slipped 0.2% week on week to P37.31 per kilo in the first week of January. Meanwhile, the retail price was flat at P40.89 per kilo.

The average wholesale price of regular-milled rice also inched down 0.2% to P33.33 per kilo while the retail price slipped 0.1% to P36.15.

Meanwhile, the peso has been hovering around the P48-per-dollar level this month.

“Going forward, the BSP will remain watchful of economic and financial developments to ensure the delivery of its primary mandate of price stability conducive to a balanced and sustainable economic growth,” Mr. Diokno said.

BSP Deputy Governor Francisco G. Dakila said last week that inflation is likely to stay within its 2-4% target until 2022, even with the recent uptick in global oil and good prices due to supply disruptions.

The BSP sees headline inflation averaging 3.2% this year, higher than the actual 2.6% recorded in 2020. — L.W.T. Noble

IATF OKs special hog lanes

THE GOVERNMENT’S task force against the coronavirus has recommended the “unhampered passage” of hog shipments to help address supply issues, Malacañang said on Friday.

Presidential Spokesperson Harry L. Roque, Jr. said Inter Agency Task Force for the Management of Emerging and Infectious Diseases (IATF-EID) Resolution No. 97 approved a recommendation from the Department of Agriculture (DA) on the designation of a nautical highway from Luzon and Mindanao and the Maharlika Highway in Luzon as special hog lanes.

This is to ensure “the unhampered passage of hog shipment from Visayas and Mindanao, while preventing the spread of the African swine fever and observing all science-based precautionary and quarantine measures,” Mr. Roque said in a statement.

This, as the African Swine Fever (ASF) continues to threaten the local hog industry, with nearly 500,000 pigs culled in the country.

Mr. Roque said the DA, the Department of the Interior and Local Government, and the Department of Trade and Industry have been directed to facilitate the shipment of pork products amid supply issues.
The DA has tapped the 2GO Group, Inc. and Oceanic Container Lines, Inc. for the shipment of live hogs and “pork-in-a-box.”

DA Undersecretary William C. Medrano said in a televised press briefing on Friday that the agency has already released about P1.3 billion in indemnity funds for affected hog raisers in various regions of the country.

“We are urging the affected farmers, backyard and big commercial farms to avail of our credit facilities. The Agricultural Credit Policy Council allocated P500 million for loan and LandBank has committed P15 billion,” Mr. Medrano said. — K.A.T. Atienza

Pag-IBIG Fund says 2020 income likely exceeded P28 billion

THE HOME Development Mutual Fund (Pag-IBIG Fund) expects its 2020 net income to have exceeded its earlier estimate of P28 billion as members paid their loans despite the ongoing pandemic.

Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said in a briefing on Friday that its cash flows were “better than expected” in 2020. It projected a net profit of P25 billion to P28 billion last year.

“Mukhang mas mataas pa po sa P28 billion ang ating net income at gusto ko pong magpasalamat sa lahat ng ating mga housing loan borrowers na kahit po may grace period sila ay minabuti po nilang patuloy na magbayad po para po mas mayroon po tayong mapapautang muli sa ating mga ibang miyembro (It looks like our net income will be higher than P28 billion and I thank all the housing loan borrowers for paying their dues, even with the grace period, so we can lend to other members),” Mr. Moti said.

Mr. Moti said loans declined by 27% to P63.7 billion in 2020.

He noted that its cash position means there is no need to proceed with this year’s scheduled monthly contribution hike of P50 for each member. Pag-IBIG Fund last month deferred the increase in the monthly contributions of its members to next year.

Mr. Moti said Pag-IBIG Fund’s board will decide on a further deferment based on this year’s borrowings. — GMC

PSEi sinks 3.5% as rising virus cases cause sell-off

STOCKS ended lower on Friday as investors booked profits amid surging coronavirus disease (COVID-19) infections and stricter lockdown restrictions in some provinces.

The benchmark Philippine Stock Exchange index (PSEi) slid 239.22 points or 3.49% to end at 6,612.62 on Friday. Meanwhile, the all shares index declined 101.01 points or 2.45% to close at 4,007.33.

“The market suffered a significant sell-off and on large value turnover, on sustained foreign outflows. Investors took to the exits, as the news of surging COVID-19 infections and uncertainty over vaccine rollouts clouded recovery expectations,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said shares continued to decline as many provinces were placed under stricter restrictions due to the rising virus cases.

“In addition, investors are still assessing the growth prospects of the country after the latest GDP (gross domestic product) figures came out,” he said in a Viber message.

The Philippine Statistics Authority reported on Thursday that GDP shrank 9.5% in 2020, the worst contraction on record. In the fourth quarter, the economy contracted by 8.3%.

All sectoral indices ended Friday’s session with losses. Mining and oil dropped 390.16 points or 4.54% to 8,187.82; holding firms lost 282.06 points or 4.01% to 6,742.39; property gave up 105.17 points or 3.02% to 3,372.87; industrials declined 249.44 points or 2.81% to 8,627; services went down 38.73 points or 2.6% to 1,450.27; and financials decreased by 32.56 points or 2.3% to 1,378.35.

Value turnover stood at P11.8 billion with 41.76 billion issues switching hands, lower than the previous session’s P8.80 billion with 56.22 billion issues.

Decliners beat advancers, 133 to 91, while 44 names closed unchanged.

Net foreign selling ballooned to P3.13 billion on Friday from the P1.31 billion seen in the previous trading day.

“Tuesday’s break of the 7,000 psychological support level and today’s decline, if sustained, could see the market testing 6,400 to 6,500,” Mr. Lisbona said on Friday. — A.Y. Yang

World’s most vaccinated nation struggles with new virus variant

With more than 30% of its population vaccinated, Israel leads the fight against COVID-19. Yet the emergence of more infectious variants is overwhelming its hospitals, showing the long road ahead for the rest of the world.

After inoculating 82% of Israelis aged 60 and more, going into a nearly month-long lockdown and shutting down the national airport this week, Israel is indicating the end of the tunnel may be further away. That dents hopes for a rapid vaccine-driven global recovery after Prime Minister Benjamin Netanyahu’s pledge at Davos to make Israel a test case for how quickly Covid shots can help reopen economies.

“We see a wave of infection that refuses to decline, apparently because of the mutation,” Health Minister Yuli Edelstein said at a press conference on Thursday.

As the European Union fights to get adequate supplies of vaccines and the U.S. pushes to get more shots into arms, the Israeli situation is evidence of the difficulty of fighting a virus whose ability to quickly mutate keeps it a step ahead of efforts to contain it.

The so-called British variant, 50% more infectious and possibly more virulent than the original virus, is to blame for the failure so far of the vaccination campaign and the lockdown to curb the spread, Israeli health ministry officials said.

While the rate of infections in Israel has declined slightly to about 9% and people seriously or critically ill has stabilized at about 1,100, the number of patients on respirators has hit a record, Corona Commissioner Nachman Ash has said. More than 4,600 people in Israel have died from the virus, and more than 7,600 people are being diagnosed with it daily.

Although the vaccine is believed to work against the British variant, the mutation’s more contagious nature means higher infections and hence more hospitalizations. The health ministry’s main goal now is to bring down the numbers of the seriously ill who are overwhelming hospital wards and exhausting medical teams.

That said, the vaccine does seem to be working. People who have gone through the complete vaccination cycle made up 2% or less of those hospitalized, said Head of Public Health Sharon Alroy-Preis, adding that “they were definitely more protected.” Netanyahu has set a target of inoculating all Israelis older than 16 by the end of March.

More time is needed to draw conclusions about the efficacy of the vaccine, Ran Balicer, head of the COVID-19 National Experts Team, said on Ynet television, adding that it would likely take another 10 days before the country sees critical cases decline, allowing the economy to begin to return to normal.

“The faster we vaccinate and the faster the population goes to get vaccinated, the faster we can bring the spread under control,” said Hezi Levi, Health Ministry director. — Bloomberg

From broker notes to memes: how the stock market went viral

Stockholm – “Stocks only go up”, concludes a video montage of televangelists, dancing Ghanaian pallbearers, and Donald Trump’s personal pastor repeatedly saying she can hear the “sound of victory”.

The tongue-in-cheek meme, designed to characterise bullish stock market sentiment when news of Pfizer BioNTech’s successful COVID-19 vaccine broke, has been viewed more than 1 million times on Instagram and Twitter.

Far more wide-reaching than broker research notes, memes have become central to a new form of financial literacy – or illiteracy, depending on your viewpoint – behind the frenzied boom in retail trading of cryptocurrencies or stocks on platforms like Robinhood.

Using images from pop culture overlaid with market commentary, they’re being praised – and vilified – for making trading entertaining and game-like.

“So many more people are getting into the stock market through Robinhood and bitcoin, so everyone is now in on the jokes about flipping your stimulus money or Fed intervention sending stocks up,” said Lit, the moniker of the man behind Litquidity, which produced the “sound of victory” meme.

He set Litquidity up four years ago, using memes to entertain young finance workers, but its Instagram following – the “litfam” – has doubled to around half a million since last March.

Lit, who works in finance and prefers not to go by his real name, is now making money from his sideline, attracting sponsorship from companies eager to reach a young audience with disposable income.

Litquidity’s recent 30 under 30 list of young people in finance – playing on the more established Forbes magazine’s annual ranking – was sponsored by trading apps and an eye wear brand. Lit has also posted a meme in partnership with payments app Revolut.

AUDIENCE REACH

For meme sponsors the potential audience was already huge but it has grown even further in the past few days.

Website Reddit’s wallstreetbets page, which this week picked the pockets of seasoned short sellers by encouraging a buying frenzy on GameStop, added two million followers in the last 48 hours.

On video sharing app TikTok, where 85% of users are under 35, there have been 5 billion and 1.4 billion views for #sidehustle and #finance, respectively.

Irish day trader Damian McVeigh said that social media content and memes helped pique his interest in finance.

“I always thought it was dry, but internet content livens it up. There’s less of a barrier because of it,” McVeigh – a quantity surveyor by trade – said.

This time last year McVeigh had limited interest in financial markets, but, after getting bored during lockdown, he now has a portfolio worth a quarter of his annual salary and a YouTube channel where he blogs about companies.

Trading app eToro grew its user base by around a third in 2020, with $1.5 billion invested on the platform, a 400% increase from 2019 as stuck-at-home punters splashed their cash.

However, critics say turning finance into entertainment can create a carnival atmosphere which promotes risk-taking by inexperienced traders.

“Memes or videos of people waving dollars around are a similar culture expression of joy as risk,” said Dr Cesar Albarran-Torres, a media lecturer at Swinburne University of Technology in Australia.

Albarran-Torres said internet chatter encourages uninitiated people to gamble on the stock market, adding: “It makes money into a video game.”

However, many social media users see the retail traders as worthy underdogs in a David v Goliath battle against established hedge funds who are used to getting their own way.

Twitter personality Liz Franczak tweeted: “the free market is when you stop reddit from trading meme options,” in reference to trading halts on stocks popular with Reddit’s wallstreetbets.

Top behavioural economist Professor Colin Camerer told Reuters that the three million strong Reddit traders “are all in a stadium cheering together”.

“Social media makes it possible to coordinate these mass actions,” Camerer said, adding that it will be interesting to see how the dynamics of this new financial phenomenon play out when some individuals in the group want to sell.

Regulation is another potential threat.

Lit, however, distances himself from accounts which recommend buying individual stocks. He says his role as meme creator is more akin to an observer or satirist.

“I like to caution at times when things seem very exuberant, to signal that this might not end well,” he added. — Reuters

Schools in low-income countries are embracing ‘low-tech’ solutions amid the pandemic

“Low-tech” interventions such as paper-based activities and radio programs are helping educational institutions in low-income countries educate those who need it the most amid the pandemic.

At the Central Visayan Institute and Foundation (CVIF) in Bohol, the chronic lack of qualified teachers, textbooks, and equipment is bypassed by learning activity sheets prepared by subject teachers. 

The analog solution also dispenses with the need for Internet connectivity in a community where only 10% of students have access to data services, which is “very unstable,” according to Marivic Bernido, who runs the school with her husband and fellow physicist, Christopher Bernido.

The sheets are distributed weekly to students, who send text messages to teachers through SMS (short message service) or Viber if they have questions. Teachers check submitted papers and provide written feedback on the sheets, which are returned to the students. 

“Some basic, low-tech interventions—such as learning sheets and radio—are working. It’s interesting that in 2021, we’re relying on these things,” said Francis L. Larios, Phinma Education’s chief learning officer.

The scenario is a familiar one for participants at the first Education@theMargins conference, which gathered industry experts from Jordan, South Africa,  Brazil, and Australia.

“In the Philippines, there are three crises: the virus, the quality of education, and the economy. … “Somehow, they have to respond to all of those all at once. This probably applies to other low-income countries,” said Ken Vine, principal research adviser of SiMERR National Research Centre at the University of New England, which works with rural communities in Australia to improve educational outcomes. 

Like Bohol’s CVIF, Bridge International Academies, which creates community school programs for children in underserved communities such as Lagos and Uganda, has tied up with radio and TV channels to decrease reliance on mobile phones. It also provides support to parents by sending information through SMS to enable learning to happen at home. Parents are likewise able to send information back to teachers via SMS.

“We do not aim for four or six hours of education per child,” said Sujatha Muthayya, vice-president for policy and partnerships at  Bridge International Academies. “It’s an hour for instruction and an hour of practice per child, because we know a lot are sharing devices. This is minimal, but let’s be consistent.” 

Students in Brazil’s Anima Educacao, a secondary and tertiary educational group, are better off in comparison: apart from lending students Chromebooks and upgrading Zoom and Skype accounts, the organization also provides courses that boost mental health like meditation, aikido, and yoga.

“We try to create a psychologically safe environment,” said Rafael Ávila, director of innovation and trends in education at Anima Educacao. “We offer psychological assistance to students because they started to become depressed. The university is a social part of their lives.”

Mr. Ávila also noted the similarities between the Philippines and Brazil. “We have public universities that are really good, but only the rich can [get] spots here,” he said. “The others go to private universities. They have to pay, but these are poor kids. We’re trying to change the situation. It’s not good for the country. As a private sector, we are trying to do what the government is supposed to do.”

Education is a whole-of-society responsibility, and requires a system-wide approach and investment at a high level, said  SiMERR’s Mr. Vine. “We shouldn’t think about it as a government problem alone,” he said. 

Phinma Education’s Mr. Larios added: “Whether it’s a student in a low-income country like Brazil, South Africa, or Jordan, the dreams look the same. The difficulties also seem the same.”

The idea of a global alliance for education was raised by panelists to “vaccinate the world from the disease of poor quality learning.” Such an alliance, however, is contingent on multi-partisan collaboration and an understanding that—while dreams and difficulties look the same, as Mr. Larios said—cultural differences have to be taken into account.

“There are differences within countries. Different countries are going to have different solutions,” said John Pegg, director of SiMERR National Research Centre at the University of New England in Australia. It is important for countries, he added, to share methods that work and methods that don’t work, so that others may benefit from hindsight. “We have to look with culturally sensitive eyes.” — Patricia B. Mirasol

Nearly 99% of SSS benefit disbursements coursed through e-channels

The Social Security System (SSS) has expanded the use of electronic disbursement channels to release benefits to its members.

SSS said from January to November 2020, about P168.55 billion in social security and employees’ compensation benefits were disbursed using banks, e-wallets, and remittance transfer companies/cash payout outlets (RTCs/CPOs). It accounts for 98.6% of the total disbursements worth P170.97 billion to 3.68 million members and beneficiaries during the period.
Retirement, Disability, Unemployment, Sickness and Maternity Benefits of individual members, as well as Funeral and Death Benefits of beneficiaries who are SSS members themselves, are now coursed through Unified Multi-Purpose Identification card enrolled as an ATM card (UMID-ATM), UnionBank of the Philippines (UBP) Quick Card, Philippine Electronic Fund Transfer System and Operations Network (PESONet) participating banks, e-wallets, and RTCs/CPOs. Non-member claimants of Funeral and Death Benefits can opt to receive the benefits through PESONet participating banks, e-wallets, and RTCs/CPOs.
Pension loans and short-term member loans for Salary, Calamity, and Emergency advances are released through UMID-ATMs and UBP Quick Cards. Member loans may also be released through PESONet participating banks.
Employer’s Sickness and Maternity Benefit Reimbursements are also paid through PESONet participating banks.
SSS issued circulars last year to implement the mandatory checkless disbursements of benefits and loans. It includes pensioners who are receiving their monthly pensions through checks and non-PESONet participating banks who are given until 31 March 2021 to change their disbursement accounts into PESONet participating banks, e-wallets, or RTCs/CPOs.
From January to November 2020, the number of benefit disbursements through checks decreased by 39.7 percent to 264,208 from 437,947 in the same period in 2019.
While SSS transitions to these new disbursement methods, there are still benefit releases such as pensions paid to a confined member or claimant in an institution such as penitentiary/correctional/rehabilitation that uses the conventional mode.
“Our goal in this initiative is to provide our members, pensioners, beneficiaries, and covered employers with safer, faster, and more convenient means of receiving benefits and loans, as we comply with the Ease of Doing Business Act,” SSS President and CEO Aurora C. Ignacio said.
Formally known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (Republic Act 11032), the Ease of Doing Business law seeks to increase efficiency by reducing processing time, eliminating red tape, and curbing corrupt bureaucratic practices.
Upon issuing the said circulars, the SSS advised members, pensioners, beneficiaries, and covered employers to register their PESONet participating bank or e-wallet account or mobile number for disbursements through RTCs/CPOs with the SSS if they still have not.
Disbursement account registration and uploading of proof of account can be made through the Disbursement Account Enrollment Module (DAEM), previously known as Bank Enrollment Module, listed under the E-Services tab of the My.SSS web portal in the SSS website (www.sss.gov.ph).
“With the social distancing and health protocols issued to stem the spread of Covid-19, the importance of digital technologies has been redefined. We appreciate our covered employers, and members, pensioners, and their beneficiaries’ who supported our ongoing digital transformation. We stay committed to continuously look for ways to bring our services closer to you,” Ignacio said.

For more information, follow the SSS on Facebook at “Philippine Social Security System,” Instagram at “mysssph,” Twitter at “PHLSSS,” or join the SSS Viber Community at “MYSSSPH Updates.”

Meralco powers Malabon City’s new COVID-19 facility

In support of the government and private sector’s fight against COVID 19, Meralco has energized the new Department of Public Works and Highways (DPWH)-initiated treatment center located along C4 Road, Barangay Tañong, Malabon City. The energization of this project involved the installation of a new metering facility, four (4) concrete poles, and two (2) 75-kVA Distribution transformers; reconductoring of three (3) spans of bare conductor to covered overhead conductors; and relocation of an elevated metering center facility including an existing distribution transformer. This treatment center is one of the many vital COVID 19 facilities and isolation centers in the Meralco franchise area that are given the highest priority in terms of providing a safe, adequate, and reliable supply of electricity in line with the distribution utility’s thrust of assisting the government during the pandemic. To date, Meralco has energized more than 90 vital facilities which include government agencies, public and private hospitals, testing laboratories, quarantine facilities, and treatment centers.

 

The rapid rise of the retail investor

The global pandemic was an event no one was prepared for, leaving millions of deaths, unemployment, and economic meltdown. With millions forced to stay at home, the internet became a window for people to connect with their loved ones, conduct business, and bring back a sense of normalcy in their lives.

Facebook, Instagram, TikTok – the biggest sources of pandemic entertainment and trends. Various forms of social media are available for everyone to keep up with the latest frenzy. And the latest source of fascination? The Philippine Stock Market.

In 2019, the Philippine Stock Exchange reported a stunning 12.7 percent growth in total stock market accounts, with online investors leading the way. This boom in retail participation was mainly a result of convenience and accessibility of online investment platforms and investment learning programs. Then the pandemic suddenly accelerated the Filipinos’ adoption of technology, especially when it came to investing.

For instance, First Metro Securities Brokerage Corporation (FirstMetroSec), Metrobank Group’s stock brokerage arm, experienced a skyrocketing number of account applications at the advent of lockdowns. The ease of the online account opening process enabled any banked Filipinos to now have his/her own trading account. Many prospective investors also became keen to start investing, wisely following the old adage repeated by many of the industry’s legendary investors: “Buy when everyone is fearful, and sell when everyone is greedy”.

Thanks to education-centric stock brokerage firms like FirstMetroSec, more and more Filipinos are now less intimidated and more eager to learn the dynamics and nuances of the investing world. Learning programs that used to gather only 50 attendees pre-COVID are now generating 500or more online viewers. New investors are clamoring to learn more, with demand for intermediate and advanced level lectures reaching peak numbers.

This sudden influx of new investors contributed to the Philippine Stock Exchange Composite Index, or the PSEi, recovering relatively in the wake of a pandemic that caused a technical recession. To date, the PSEi has gone up by 70 percent after crashing to a low of 4,040 points back in March of 2020. Aside from clearly depicting the trust and belief of investors in the strength of the Philippine economy, the new money that came in helped hasten the pace of recovery.

Thus, in a world previously ruled by giants, the individual investors are making their presence known, proving that they are a critical force in the market. Both local and foreign institutional trading volume, which used to dominate the exchange, are now being challenged by retail.

With the aid of online trading, the rapid rise of the Filipino retail investor will continue. Retail investors are finally participating actively in the capital markets. There is so much more improvement needed to further expand investment and growth opportunities while mitigating risks — education, technology, investment products. But the trend has been established. The playing field has been leveled. Adversity has inspired opportunity. The Filipino retail investor is now a real force to reckon with.

 

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