Philippine Stock Market: Prospects in 2022

Although some investors are still cautious given the uncertainties brought by the COVID-19 pandemic, experts believe that majority are increasing their investments in the coming months and optimistic about the reopening of the economy.

Whether growth drivers or potential risks, what else should investors watch out for on the prospects of the country’s stock market in 2022?

Learn that and more in BusinessWorld Insights themed “Philippine Stock Market: Prospects in 2022” in partnership with Meralco and Security Bank.

My Notes and Takeaways from Philippine Stock Market: Prospects in 2022

April Lee Tan, COLFinancial

  • Risks are the rising inflation, FED rate hikes, COVID, and elections
  • There are also risks to being too cautious and not participating in the market
  • The local stock market historically went up 3 months before and 3 months after the election
  • We are coming from a low base from the lackluster performance last year
  • It’s an open secret that the markets like Leni Robredo
  • The government is not as strict anymore in terms of lockdowns and people might be thinking that there might be another surge
  • “If the US sneezes, everyone catches a cold.” It’s a “buy on dip” market.
  • We are in the transition from being in a bear market to a bull market
  • Consumer stocks are not doing well but the media stocks are doing okay
  • The negatives are already priced in

Angelo Taningco, SB Equities

  • The local stock market underperformed last year compared to neighbors due to intermittent surges and lockdowns
  • Optimism this year was fueled by the economic data being above expectations
  • Cautiously optimistic in the near term also due to geopolitical concerns (Russia vs. Ukraine)
  • The economic agenda of the next administration is also a source of uncertainty 
  • Core inflation is a good indicator of demand-pull
  • FED rate hikes may have knee-jerk reactions to stocks and bonds (The first one will be in March)
  • The geopolitical risk is coupled with rising inflation, rate hikes, and monetary tightening
  • We are in the recovery phase and on track to continue
  • Cautious in the short-term and still positive in the medium to long term for the local market

John Michael Lapiña, Investa

  • We need more volume of trading/liquidity in the local market to make it more attractive
  • Watch out for these industries: Renewable Energy, Technology, and Mining
  • 7% of Nickel supply is from Russia
  • The mining sector and gaming sector can unlock more value for the Government
  • PH is one of the hotspots for renewable energy for foreign investors
  • Traders see the local stock market as being top-ish, it will take time to reach a new high
  • We need to list more companies in our local stock market
  • Given the volatility, it will be a trader’s playground
  • Money can be made in a bull market but wealth can be made in a bear market
  • In a “wait-and-see” approach due to what may happen to the Russia and Ukraine conflict

How about you? What are your key takeaways?

Remember, before even thinking of investing, make sure you have your financial foundation set in place.

Have good cash flow, minimize debt, and make sure you have life and health insurance.

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When he is not busy watching "The Office" or playing 1st person shooting games, Argel consistently invests in the stock market, both local and global, plus cryptocurrencies. He plays-to-earn with NFT games, reads a lot of books, and loves to learn. He also helps Pinoys create, manage, grow, and protect their wealth as a licensed financial adviser. Get in touch with him by sending an email to contact[at]argeltiburcio.com

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