Generally speaking it is a very good time to invest in the Philippine Stock Exchange (PSE). The decreasing cost of oil plus optimism in our economy is boosting our stocks. However, if you are a newbie in the stock market it is best to do your research before you jump in. Start with big and well-established companies and take a look at how much their stocks have been valued in the past few months.
To help you jump start your stock market experience we will show you information on several best stocks to invest in that you might want to place your money. We will try and diversify our examples to give you a wide range of possible choices.
Let us start with banking. We have several very good banking institutions in the country. Among these are:
• Metropolitan Banking Corporation (Metrobank)
• Bank of the Philippine Islands (BPI)
• Banco De Oro (BDO)
Of these three, the performance of Metrobank in the past few months make it the best investment in this category. This is currently because it is has the most potential of gaining value. It dropped more than the other two in the last few, so it has more growth potential if you buy when it is at a low point.
Remember, you have to buy low and sell high to make money in the stock market. A solid stock such as
Metrobank (or BPI and BDO) will never completely bottom out but currently Metrobank has the highest profit potential.
The property market is also a major industry worth investing in especially in the present property boom.
For this industry, we recommend:
• Mega World Corporation – it is definitely leading the pack with many quality properties opening up in the market
• Ayala Land – It is not far behind as a major player in the growth of the property industry in the country, for the same reasons.
However, it would be safe to say that most major players in the property development industry are worth considering investing in. You need to do your homework and keep a weather eye out for any new construction that appears to be springing up like magic. This means that the developer has a significant well of funds behind it, and this makes it a safer investment that developers that have to wait for buyers.
Most utility companies are safe bets because they are fairly stable. However, they are also usually slow when it comes to growth. On the other hand, because of the steady growth of commerce in the county, there is a high demand for additional sources of electricity. This makes the power industry an attractive investment because of the projected rate of growth. The Manila Electric Company or Meralco is good stock to buy and hold on to at this point.
When it comes to travel, believe it or not Cebu Air Inc. more commonly known as Cebu Pacific Airlines is very good stock to buy into as an investment in spite of the problems it is experiencing. Perhaps this should be due; the current low value of the stock is what makes it attractive. The growth potential is there once the company gets past the controversies because of the low cost of fuel.
SM Prime Holdings and Ayala Corporation are major conglomerates that are worth looking into, as well.
SM Prime Holdings is one of the biggest holding company in the world in terms of revenue, and it is still growing at a healthy rate. Ayala Corporation, the mother company of Ayala Land is also a very robust company that dates back to almost the birth of the country. It has taken part on the country’s development from day one. That is as solid as it gets.
All the industries and companies stated above are safe companies in which to invest. Buying stocks of these companies will most likely be a good investment for you as long as you do your research and exercise a bit of caution when buying and selling.
More importantly, the key word here is investment. Do not expect to grow your money in days, maybe not even months or years. It would also be good practice to spread out your investment into different industries. That way you also spread out the risk and the potential earnings.
Buy in small amounts at regular intervals, monthly or quarterly, and keep buying until the value begins to go up considerably. When the price reaches a point that you are not comfortable buying at, stop and keep the stocks until you feel it has reached the sweet spot. This is when selling results in a nice profit.
Don’t be greedy.
Remember that the stock market is not static. You have to be alert to major changes or upsets that will likely affect your stocks, or provide you with a good opportunity to acquire low-priced stocks. Stock trading is a good way to make investments, but more importantly, it is a learning experience. It will help you make good decisions in your future investments.