|
Saturday, July 09, 2005
Investors urged to consider investing in stocks now
Those who are planning to invest their money in equities or stocks should do it now.
According to Victor Limlingan Jr., strategic development officer of Sun Life Management Co. (SLMC), the political crisis hounding President Gloria Arroyo’s administration has opened a good opportunity for investment in the stock market.
“The current political unrest would seem temporary and may actually be a buying opportunity,” he said during an investment forum sponsored by Standard Chartered Bank at the Cebu City Marriott Hotel.
Wealth Development Bank (WealthBank) president Sabiniano Villamor supported Limlingan’s statement. But he said investors still must be cautious in deciding where to invest their money.
“The basic rule of investing must not be forgotten. Investors must choose the right company,” he told Sun.Star Cebu in a separate interview.
Villamor said the prices of stocks in the stock market tend to go down during a crisis—political or economic—because investors shy away from the market. This means the demand for stocks declines, resulting in the decline of prices.
Limlingan said that in selecting stocks to buy, investors must consider the following factors: long-term sustainable earnings growth, stable cash flows, high quality of management, superior assets and strong business franchise, among others.
With the country’s volatile economy, he said investors must maintain a diverse portfolio.
In a statement, Philam Asset Management Corp. (Pami) advised that investors should determine how much risk they are willing to take by defining their investment goals, available resources and the time frame for their investments.
“The setting up of an investment goal is the critical first step to risk management,” Pami said.
Yesterday, prices at the Philippine Stock Exchange climbed 28.96 points to 1,876.28, after several Cabinet ministers asked President Gloria Arroyo to resign.
Arroyo has been accused of rigging last year’s presidential vote.
Prices at the bourse crashed 4.2 percent on the first trading day of this week after the Supreme Court issued a temporary restraining order against the expanded value-added tax, a key fiscal reform measure of the Arroyo administration.
The market recovered later in the week on bargain hunting on oversold stocks.
Financial companies like SLMC, CitiGold Wealth Management and Pami offer investors their expertise in managing their investment so that these will be poured into diverse investment instruments such as bonds and equities. (JBN)
(July 9, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
