FTSE Russell Convenes | Episode 2, Season Asean

A Bullish Market for the Philippines in 2023

May 18, 2023

The Philippine Stock Exchange (PSE) is seeing new opportunities to attract more international and domestic investors with the emergence of the Philippine-China Stock Connect initiative as well as their partnership with finance app GCash. In this episode of FTSE Russell Convenes ASEAN, Ramon Monzon, President and Chief Executive Officer of PSE, discusses how these opportunities can contribute growth and how retail participation has fared compared to institutional participation in the Philippines.

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we had a fantastic growth in the retail participation,especially during the height of the pandemic.In fact, in January 2021, for the first timeever, retail participation exceeded the institutional...Ramona, it's lovely to have you here in person.Thank you for having me, Maggie.So what are some recent developments in your marketthat international investors should take note of?The most important development is we have entered into an initiativewith the China stock exchanges, where we hope to be ableto establish a Philippine stock exchange, Beijing stock exchange.a Philippine stock.PSE, Shanghai Stock Exchangeand BSE Shenzhen Stock ExchangeSo we started this initiative about two months ago.So we are working out with the Chinese governmentand in index stock exchanges how to make this happen.What do you hope comes of that? Well,really, I thinkit might be more of a one waystreet in terms of in terms of China.Chinese investors investing in Philippine stocks,which is what they wanted to drive up, the volume and the liquidityand less of Philippine investors investing in China stocks.How has the retail and institutional participationgrown in the ASEAN markets and in your market?Well, we had a fantastic growth in the retail participation,especially during the height of the pandemic.In fact, in January 2021, for the first time ever, retailparticipation exceeded the institutional by 51% to 49.But since people have goneback to work, you know, I guess they're more busy now.We're back to about 22%.What are the channels for global investors to access the ASEAN markets.At the momentit would be difficult for retail investors to do it,but institutional investors have been doing it for a long time.And in the markets, the Philippine markets,we have a lot of foreign investors.They comprise 47% of our market volume.What is your outlook for 2023?We're very bullish in the Philippine market for 2023, especiallybecause I think I forgot to mention we tied up with a biggest payment platformin the Philippines, which has about 65 million subscribers andwe are enabling the subscribersto invest directly in the stock market through their payment app.Okay.We only have about 1.65 million investorsand we're hoping that with this tie up and,you know, easing up of the tradingmodule for the investor for the subscribers of the payment app,we hope to drive investors,you know, five, 10 million level in the next five years.Are there any trends that you see really helping to contribute growth,either trends in sectors or trends in the in the region's economy?In the Philippines now,we recently just launched the rates, okay.And this has attracted a lot of investors, I guess,because of the high dividend yields.So we have we've already topped the,I guess, surface of the market, just the real estate,I guess leasing rates.But we wanted to tap, of course,roads, hospitals, logistics.So that's what we're looking forward to.

November, 3, 2022 at ASEAN Investment Summit

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