More small investors turn to stocks to make money

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Retail investors have become a force to contend with in the local stock market, making up for the slack in foreign investor interest during the prolonged COVID-19 pandemic. | Philbizwatcher

Meanwhile, foreign investors continued to exit the local market as net foreign selling for the first quarter reached P47.91 billion, up by 55.1 percent from a year ago.

Capital raised at the PSE for both primary and secondary offer shares in the first quarter rose to P41.63 billion from P19.24 billion in the same period last year. Capital-raising activities for the first three months of the year included one initial public offering , one follow-on offering, two stock rights offerings and two private placements.

Average daily value turnover in the first three months of 2021 went up by 64.6 percent year-on-year to P10.99 billion from P6.68 billion. The main stock barometer PSE Index ended the first quarter at 6,443.09, declining by 9.8 percent especially with the resurgence of COVID-19 cases in March. “Uncertainty about the pace of the country’s vaccination program has discouraged foreign investors. But we expect that once a good percentage of the population has been vaccinated, these investors will soon regain confidence in our economy,” Monzon explained. INQ

 

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