Beruflich Dokumente
Kultur Dokumente
Module 6
By: Ricky G. So, CIS, RFP®
Components
Who? Investor
Why? Objectives
How? Strategy
PRIMARY OFFER
- like “stock’s IPO”
- Issued at PAR
- Bought from accredited dealers
At Market
SECONDARY MARKET
- like “stock that is listed in the PSE”
- Traded either at PREMIUM or DISCOUNT
- Transacted thru accredited brokers
The PDEX
-These firms actively post bid and offer prices and buy or sell securities for
their
OWN account.
The PDEX Dealers
The PDEX Brokers
-These firms execute buy or sell orders for their CLIENT Investors’ account as
“public representatives” seeking the best available prices in the market and the
acting in the best interest of their Client Investor.
-They are trading participants who buy and sell securities for the account of the
others.
The PDEX Brokers
The Financial Market (Primary and Secondary)
The Result
Underwriter /
Company Inv. House
Bond Offering
Investors Broker
The Philippine Stock Market
*wikipedia
The Phil. Stock Exchange (PSE) List
The PSE Snapshot
www.pse.com.ph
Cash &
Equities
Bond Market
Money
Market
Market Commodities Foreign
Pooled Funds
& Exchang
Market
Derivatives e
Market Market
The PHL Economy
People
Business
Government
Goods
Services
The PHL Indicators
Source: Investopedia.com
The GNP/GDP Illustration
Citizens
X
Foreigners
Philippines
Citizens
Other Countries
Foreigners
Citizens
Philippines
20
The PHL Economy ~ Business
Borrowed
Capital
Equity
The PHL Economy Components
22
The PHL Economy - Variables
73%
11%
19%
3%
23
The PHL Economy - Variables
Consumer
Price Index Less:
(CPI) LPG, Oil, Gasoline,
Diesel, Kerosene
CORE
Rice & Corn
INFLATIO
HEADLINE Fruits and N
INFLATIO Vegetable
N s
27
Inflation
28
Inflation
Inflation
CONTROL MANAGE
Inflation / Deflation
Inflation
32
Inflation
33
Inflation
34
Inflation
35
Inflation
36
Inflation Targeting Policy
Inflation > Interest Rate Policy > Business
Source: IDEA
Money Supply
Deposit Substitutes
M3
Savings & Time deposits
M1
M2
Money in circulation + CA
Monetary Board
39
Tools of the MB
%
Setting the interest rate at which the central
bank will loan funds to banks and other
depository institutions.
Bank Lends:
3.50%
P0.19
Reserve Bank Borrows:
5.50%
Deposits
P1.00
6.00%
P0.81 - 8.00%
Loans
Statutory Reserves Legal Reserves
BUYS
Treasury
Bonds
SDA
SELLS
Directions
• Ways of controlling money supply:
Expansionary Restrictive
Monetary Policy Monetary Policy
45
The Business Cycle
Interest Rates may Bottom Out
Stay Neutral / Trim Stocks move to non-cyclical
Sell Bonds
Stay Short
Interest Rates will likely
REBOUND
Interest Rates generally Underweight Long Bonds
DECREASING. Keep Defensive
Overweight Long Bonds Stocks
Overweight Cyclical Stocks Stay Short term
Underweight ST Build Cash
Reduce Cash Start Spotting
bargains