PSE: Online trading accounts log 'muted growth' in 2022

MANILA, Philippines — The Philippine Stock Exchange noted the growth in online stock market accounts in 2022 was “muted,” but expects some churn as brokerage firms roll out in greater numbers. 

In a statement on Monday afternoon, the local bourse reported online investor accounts inched up 8.6% year-on-year to 1.25 million accounts in 2022.

Its analog counterpart registered a decline, however. Data provided by the PSE showed a decrease of 7,156 accounts to end up with 453,827 in 2022. 

Total investor accounts inched up 5.7% on-year to 1.71 million in 2022. The PSE reckoned local retail investors owned “a little over” 98% of the total accounts, with institutional investors and foreign investors possessing 1.9% and 1.7% of the total. 

“The growth in accounts may have been subdued in 2022 but I expect an uptick in numbers again with the foray of new stock brokerage firms in the online trading space and the upcoming rollout of stock investing features in finance apps,” said PSE president and CEO Ramon Monzon.

Monzon noted that the total investor accounts felt the impact of the clean-up of dormant accounts by trading participants. This move was done in compliance with the Anti-Money Laundering Act (Republic Act No. 9160).

Data broken down showed female investors outnumbered male investors, at 50.2% in 2022. This was slightly higher in terms of online accounts as 51% of the total were owned by female investors. 

In terms of age, investors in the 30-44 range comprised half of the total retail accounts. This was followed by 45 to 59-year-old investors (20.7%), 18-29-year-olds (18.7%) and those aged 60 and above (10.8%).

The data also showed investors with an annual income of less than P500,000 yearly comprised 53.5% of retail accounts and 72.9% of online retail accounts. 

Investors who earned P500,000 to P1 million owned 25.6% and 13.6% of retail and online retail accounts each.

Meanwhile, those who earned P1 million and beyond annually. comprised 20.9% of retail investors and 13.6% of online investors. — Ramon Royandoyan