The Philippine stock market: How do Filipinos make investment decisions based on selected market information?

• Main Author: Delantar, Edna A.
• Format: text
• Published: Animo Repository 2024
• Subjects: Investments—Philippines; Stock exchanges—Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/12596
• Institution: De La Salle University

Access to information is paramount for retail investors, offering insights into prevailing industry and market dynamics that could sway investment outcomes. Making informed decisions is crucial for successful investing. Retail investors heavily lean on timely and precise information to navigate critical aspects of investment management, including strategic asset allocation, prudent portfolio diversification, opportune entry and exit points, and effective risk mitigation strategies. This research involved 250 retail investors from the Philippines who took part from May 2016 to April 2019. They assessed the importance of market information in guiding their investment choices (that is, to buy, hold, or sell) in bullish and bearish market conditions. The study categorized 19 pieces of information into macroeconomic, fundamental, and market trading categories. Among these, investors placed the highest importance on return on investment, bid/ask trade volume, and the P/E ratio. The findings revealed that macroeconomic, financial, and trading data had varying degrees of correlation with investors' decisions to buy, sell, or hold investments in both bullish and bearish markets.