For the first time since the Philippine Stock Exchange (PSE) was established in 1927, the stock trading accounts held by retail and institutional investors breached the 2-million mark. Stock trading accounts increased by 49.7% from 1.91 million in 2023 to 2.86 million in 2024 due to the implementation of technology-based stock trading platforms such as the PSE EASy that makes it seamless to participate in initial public offerings, the PSE EQUIP that provides public access to real time stock market data and the GStocks app that allows investors to trade stocks through mobile devices. The value of stock trading activity refers to the total dollar amount of stocks bought and sold on an exchange during a given month. It is an important indicator of favorable investor interest, increased market liquidity, enhanced stock tradability and expanded market participation among investors. The value of stock trading activity often reflects how stocks can be bought or sold without causing large stock price movements that can broaden the valuation gap between the market value of a company and the intrinsic value of a stock. But quantity does not equate to quality because despite the notable increase in stock trading accounts, the PSE remains as the worst performing stock market among the Association of Southeast Asian Nations (ASEAN) member countries. The value of stock trading activity across the ASEAN stock exchanges is led by the Stock Exchange of Thailand (SET) at $25.2 billion, Singapore Exchange Limited (SGX) at $21.0 billion, Vietnam Stock Exchange (VNX) at $17.9 billion, Indonesia Stock Exchange (IDX) at $15.3 billion, Bursa Malaysia Berhad (KLSE) at $12.1 billion and the Philippine Stock Exchange (PSE) at $3.0 billion. PSE has gone a long way in developing capital markets, ensuring shareholder protection, promoting corporate governance and increasing investor confidence. What kept the PSE dead last in terms of stock trading activity is the meager investor participation brought about by the limited number of listed companies. The ASEAN stock exchanges is led by Malaysia with 1,056, Indonesia with 956, Thailand with 857, Vietnam with 699, Singapore with 612 and the Philippines with 284. Perhaps the policymakers must lower the requirements for companies applying for listing by way of an initial public offering, introduction or backdoor to minimize if not eliminate unnecessary regulatory procedures that create compliance costs. The ease of doing business can persuade companies to go public and encourage investors to take part in stock trading. Philippines is down but not out so buy now at the low and sell later at the high.
