Value investing and technical analysis in the Philippine Stock Exchange, investing in the five different sectors after the financial crisis of 2008 from the years 2010-2019

• Main Authors: Marzan, Mathew Luis L., Sese, James Ryan A., Yap, Bryan Michael C.
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Stocks—Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etdb_finman/15; https://animorepository.dlsu.edu.ph/context/etdb_finman/article/1009/viewcontent/marzan_Redacted.pdf
• Institution: De La Salle University

The Philippine Stock Exchange has been a place where local and foreign investors can buy and sell shares of companies that are located in the Philippines. Both foreign and local investors have their own investment strategies that they use in order to fully maximize their potential gains and avoid or lessen the risks that are present when trading and investing stocks. The researchers tested two investment strategies, which are the buy-and-hold and the 10-day moving average trading, on five different sectors of the PSEI to see which among the two strategies will be able to yield a better return on investment. In addition, the researchers tested the book-to-market ratio as the stock screener for choosing the stocks that were part of the simulated trading and also tested the relationship of high book-to-market ratio stocks to high returns. The 10-day moving average trading strategy was able to outperform the buy-and-hold strategy in the property and industrial sectors due to the bullish stock performance of the individual stocks in the two sectors. The 10-day moving average trading strategy was able to capture the gains of the uptrend markets while it magnified the losses when the market was in a downtrend due to moving average trading rules used by the researchers. The relationship between the book-to-market ratio with values above 1 and high returns showed to be insignificant with the use of Pearson’s Correlation.