Investing In The Philippines
I am not sure if readers of TalkMarkets are even considering investing in the Philippines. I just like to share a few points on why one should consider investing in my country, which I believe is the best EM story today.
1. Demographics wise, bulk of the 110M strong population is between 20 to 35
2. Debt to GDP is low at around 45%
3. Growth is around 6.5%, and that is without much spending from government. The current government is approving infrastructure projects faster than the previous administration, thus expecting at least a 7% GDP growth in the second half of this year.
4. The big companies here have minimal exposure to dollar denominated debt.
5. IPOs are rising year after year.
6. The newly elected President won by a very big margin. President Duterte is focusing on solving the right problems, which are of security, drugs and corruption. Before holding office, he served as Mayor of Davao. His reputation is that he is friendly to big business. In my estimation, this means that he doesn't meddle too much as long as businesses do it right by the people.
7. The Philippines recently won their case against China which says a lot. Next up is Sabah.
8. BPO business is booming, replacing OFW money that is expected to slow down because of problems in the Middle East. Facebook and Google opened their offices here recently.
These are just some of the points that can help you justify investing in the Philippines. Here are a few stocks to look at.:
Ayala Corporation (AC), Ayala Land(ALI), Megaworld (MEG) for big cap stocks.
If you want small cap growth stocks, take a look at D and L Industries (DNL) and COL Financial Group (COL).
The Philippines is one of the top users of Facebook which tells you that Filipinos are updated about everything that is happening in the world. It is not surprising that you can access stocks in the Philippines online at COL Financial Group through their website. You can buy all the listed stocks and also buy mutual funds through them. I think they are the best growth story coming out of the Philippines right now with close to 300,000 clients and growing, no debt, and 25% return on equity. In terms of number of clients, they are just scratching the surface as the number of stock market players here is probably less than 2% of the population.
I hope this informs your view of the Philippines a little bit
Dislcosure: None
Any updates on this topic? Would love to see more by you!
I had never considered the #Philippines as a venue for my investments. Thanks for broadening my horizons. I'd like to see more on this topic.