Updated: September 24, 2014
A reader recently asked me what are the best stocks in the Philippines which he can buy for long term investment, specifically those which he can use for cost averaging.
If you’re not familiar with stock market investing, then I suggest you read this blog’s primer first: How To Invest In The Stock Market
Also, if you’re not familiar with how cost averaging works, you may want to visit this article: How To Do Cost Averaging
Now for those who are already well-informed and ready to invest in the stock market, then below are sixteen Philippine companies which my stock broker, Citiseconline, has determined to be the best choices for cost averaging.
According to them, these companies possess the GEMSS criteria:
- G – Growing industry
- E – Earnings visibility
- M – Management credibility
- S – Superior products
- S – Strong balance sheet
Ayala Corp. (AC)
A holding company for diversified interests in banking (BPI), real estate (ALI), and utilities/water distribution (MWC).
Ayala Land, Inc. (ALI)
Largest and most experienced real estate developer
Aboitiz Power Corp. (AP)
Leading player in the Philippine power industry – power generation and distribution in Visayas and Mindanao.
Banco De Oro (BDO)
One of the largest full-service universal banks with a corporate, retail, investment banking and insurance broking.
Bank of Philippine Islands (BPI)
One of the largest Philippine universal banks with more than 800 branches in the Philippines, Hong Kong, Italy, and the US. It provides commercial and consumer banking services, asset management and trust services, mutual funds, electronic banking, and brokerage services and investment banking services.
DMCI Holdings, Inc. (DMC)
Holding company with businesses engaged in general construction (DMCI), equity investments in infrastructure projects (PDI), heavy fabrication, industrial construction and engineering services (AG&P) and exploration, mining, development and sales of coal resources (SCC).
PNOC Energy Development Corp. (EDC)
A pioneer in geothermal energy industry involved in the exploration and production of water-based steam power to generation of electricity for commercial use.
Int’l Container Terminal Services (ICT)
Engaged in the management, operation and development of container terminals in Asia, Europe, Middle East, Africa and the Americas.
Jollibee Foods Corp. (JFC)
Develops, operates and franchises quick-service restaurants in the Philippines and overseas under the brand name Jollibee, Chowking, Greenwich, Red Ribbon Bakeshop, Inc. and many others.
Metropolitan Bank & Trust (MBT)
One of the largest Philippine banks providing deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange, trading and remittances and trust services.
Metro Pacific Investments (MPI)
Holding company for investments in real estate and infrastructure projects such as water utilities, toll operations, healthcare, power, port, and others.
Manila Water Company (MWC)
Holds exclusive rights for water delivery, sewerage and sanitation services under a 25-year concession agreement to 6Million residential, commercial and industrial customers.
SM Investments Corp. (SM)
The holding company of the SM Group of Companies engaged shopping mall development, retail, financial services, real estate development and tourism and hotels and conventions.
SM Prime Holdings (SMPH)
Engaged in developing and operating modern shopping centers with over 40 SM Supermalls in the Philippines and three SM supermalls in China.
Philippine Long Distance Tel. Co. (TEL)
Leading telecommunications provider in the Philippines with three principal business groups – fixed line, wireless, and information and communication technology.
Universal Robina Corp. (URC)
Leading branded convenience food and beverage company in the Philippines, and a major player in the Southeast Asian region and greater China.
Lastly, please note that starting this year, the Philippine stock market is now open from 9:30 AM until 3:30 PM, with a market recess between 12:00 NN until 1:30 PM. That’s more trading hours for all of us! 😀
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Disclaimer: The information above should not be taken as financial advise from an expert. This article is merely for educational purposes. Please consult a wealth manager or a certified financial planner before making any major investment decision. Please read this site’s full disclaimer here.
Photo credit: Katrina.Tuliao