Top Companies in the Philippines to Invest Stocks In

Top Companies in the Philippines to Invest Stocks In

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).

Introduction

Investing can take many forms. If you’re looking for the top companies in the Philippines to invest stocks in, this article is for you.

The growth of many companies – both private and public – typically outpaces the direction of the economy as a whole. However, publicly traded businesses give you the option of increasing your investment through dividend income or stock price appreciation.

Top Companies in the Philippines to Invest Stocks: The Hows

You can purchase stocks in the Philippines through brokers, such as the Philippine Stock Exchange (PSE). The funds you need to invest in the country’s stock market would vary depending on the stock, the current price, and the sum needed to start a trading account with a stock broker.

The minimum amount of stocks you can invest in is based on the stock price of the day. If the share prices at the time you’re investing are high, then you won’t be required to acquire a lot of shares, as long as you hit the amount set out by the stock exchange.

Anyone above the age of 18 can invest in the Philippine stock exchange, including both locals and expats. Additionally, persons under the age of 18 can still trade stocks by opening an in trust for (ITF) account with the help of their parents or guardians.

Below are the best stocks to acquire in the Philippines, especially if you are eyeing long-term investments.

Top Companies in the Philippines to Invest Stocks: SM Investments Corp.

The SM group of companies, which offers retail, real estate, banking, and equity investments, is represented by SM Investments Corp. (PSE: SM). SM Investments is a sizable company, which currently is the largest corporation listed on the Philippine Stock Exchange with a market capitalization of 960 billion pesos ($16.3 billion), according to MarketWatch (as of the time of writing).

Note that market cap is the value of a company traded on the stock market.

Three of the firms owned by SM Investments already account for more than 30% of the Philippine stock market index’s value. Its business fundamentals are strong, and its earnings are exceptional. The payouts are also very large. If you’re seeking top line growth in the long term, you can consider acquiring stocks of SM.

Top Companies in the Philippines to Invest Stocks: SM Prime Holdings

Property developer SM Prime Holdings (PSE: SMPH) is a subsidiary of SM Group. It is one of South East Asia’s biggest integrated real estate developers. The company operates malls in China and in the Philippines. Additionally, the company constructs and oversees hotels, convention centers, office and commercial buildings, as well as residential complexes.

In terms of market capitalization, SM Prime is the biggest real estate firm listed on the PSE. As a result, it gives the authority to utilize enough money to keep growing and innovating its company as well as upcoming real estate projects. Furthermore, SM Prime has solid foundations and investor sentiment is further strengthened by its net income of 14.1 billion pesos in the first half of 2022 (up 21% year over year), plus an ongoing dividend payments to shareholders.

The company’s market cap in 2017 has even hit more than 1 trillion pesos, the first firm to do so in the Philippines, before it plunged to less than that amount in 2020. Currently, its market cap stands at 953 billion pesos, according to MarketWatch.

Top Companies in the Philippines to Invest Stocks sm
SM Mall of Asia in Metro Manila. Image by Ravi Chauhan

Top Companies in the Philippines to Invest Stocks: Ayala Corp.

Ayala Corp. (PSE: AC) is among the top blue-chip corporations in the Philippines, which has a national record for excellence, dependability, and the capacity to generate profits in both good and poor economic conditions. It is also one of the largest conglomerates that owns famous companies in the country such as BPI, Globe Telecom, Ayala Land, and AC Energy and Infrastructure.

Ayala Corp.’s market cap currently sits around 378 billion pesos, as per MarketWatch. It distributes dividends on a regular basis to its shareholders, so it’s one of the most popular stocks on the PSE’s main index, PSEI. Majority of equity and mutual funds that follow the PSEI also invest their resources in Ayala Corp. shares.

Top Companies in the Philippines to Invest Stocks: Ayala Land Inc.

Ayala Land Inc. (PSE: ALI) is one of the top names in the real estate industry in the Philippines, thanks to its diversified real estate business. The company is one of the largest listed businesses on the Philippine Stock Exchange and is also one of the top Philippine stocks to purchase right now, geared for long-term investment. Its market cap currently stands at 348.5 billion pesos, as per MarketWatch.

The balance sheet of Ayala Land Inc. is steady, its assets continue to increase, and it also regular pays dividends to shareholders. Long-term investors, in particular, should consider the company’s track record when deciding whether to hold this stock for a decade or so.

Top Companies in the Philippines to Invest Stocks: International Container Terminal Services Inc.

International Container Terminal Services (PSE: ICT) is a top terminal operator in the country that owns various port facilities not only in the Philippines but also across several nations in the Americas, Europe, Asia Pacific region, and Middle East and Africa. It is one of the top companies to acquire stocks in.

It is the only terminal operator sector in the top listed stocks in the Philippine stock exchange, so there is relatively little industry-wide rivalry. International Container’s finances are solid, and its future looks bright too, with a potential jump in income due to port facility openings and terminal expansions following the COVID pandemic.

Top Companies in the Philippines to Invest Stocks: Jollibee Foods Corp.

Jollibee Foods Corp. (PSE: JFC), the largest food chain in the country, is currently growing its food franchise operations globally. Additionally, JFC units include a number of well-known food chain brands, such as Chowking, Red Ribbon, Mang Inasal, Greenwich, Burger King, and many others.

You could consider committing a part of your investment budget to the food business and what better stocks to purchase than the leading company in the food network market itself?

While its stock suffered a significant decrease as a result of the COVID pandemic, the price of Jollibee Foods shares has historically been rising and now is a great moment to invest before it once again hits its all-time high.

Top Companies in the Philippines to Invest Stocks jollibee
Service Crew at a Jollibee Food Chain. Image by Jansen Romero

Top Companies in the Philippines to Invest Stocks: JG Summit

JG Summit (PSE: JGS), the holding company for the Gokongwei group of companies, is one of the Philippines’ biggest and most diverse corporations. It is also among the top businesses represented on the PSE index. Popular companies such as Cebu Pacific, Universal Robina Corp., Robinsons Land Corp., Robinsons Bank, and JG Summit Petrochemicals are among its businesses.

You can diversify your portfolio and gain exposure to JG Summit’s reputable businesses in the Philippines by investing in its stock.

Top Companies in the Philippines to Invest Stocks: Alliance Global

Alliance Global (PSE: AGI) is a renowned Filipino conglomerate with interests in quick-service restaurant, real estate, tourism-entertainment, gaming, and food and beverage industries. The company has a market cap of 77 billion pesos, according to MarketWatch.

The company holds a 49% stake in Golden Arches Development Corp., which owns the franchise for Mcdonald’s in the Philippines. Megaworld, Emperador, Travelers International, and Infracorp are just a few of Alliance Global’s other top-notch units.

Top Companies in the Philippines to Invest Stocks: BDO Unibank

BDO Unibank (PSE: BDO), the top bank in the country with regards to assets, capital, loans, deposits, and receivables, has a market cap of about 518 billion pesos, as per MarketWatch. The company reported a net income of 23.9 billion pesos in the first half of this year, a 12% increase year over year.

BDO can easily reach and grow its clientele as it is the top and most influential bank in the nation with more than 1,500 outlets spread around the nation. The business’s revenue is also steadily increasing each year. If you want to invest in the financial industry, BDO is one of the greatest stocks to purchase for the long haul.

Top Companies in the Philippines to Invest Stocks: Aboitiz Equity Venture

Aboitiz Equity Venture (PSE: AEV) has a reputation for being one of the best managed conglomerates in the Philippines. Power, food, infrastructure, real estate, banking, and financial services are some of its major investments. The company’s market cap currently stands at 326.5 billion, according to MarketWatch.

Investing in holding companies like Aboitiz Equity Venture is profitable since its diversified businesses will be a good exposure for your portfolio. The company owns a number of strategically important businesses, including Aboitiz Power, Unionbank of the Philippines, Pilmico Foods Corp., Aboitiz Land, and Aboitiz InfraCapital.

Top Companies in the Philippines to Invest Stocks: Bank of the Philippine Islands

Ayala Corp. subsidiary Bank of the Philippine Islands (PSE: BPI) is the first bank established in the country and is ranked among the nation’s top banks. BPI is also one of the top stocks listed on the PSE index.

BPI’s financial record is impressive with constant revenue growth, net income, total assets, total deposits, and capital. In the first half of this year, the company reported a net income worth 20.4 billion pesos, which is a 73% surge year over year. BPI has a market cap of 408 billion pesos, as per MarketWatch. Outlook for BPI is bullish long term.

Top Companies in the Philippines to Invest Stocks: GT Capital Holdings

One of the largest conglomerates in the nation, GT Capital Holdings (PSE: GTCAP) has interests in banking, real estate development, automobile assembly, import, infrastructure, utilities, financing, and insurance. The company is a holding firm for a number of strong enterprises in the Philippines, such as Metrobank, Toyota, AXA, Metro Pacific Investments, and Federal Land.

Furthermore, GT Capital is one of the constituents of well-known stock market indices like the PSEI, FTSE All-World Index, and MSCI Philippine Index. According to MarketWatch, the company’s market cap is now at 85 billion pesos.

Top Companies in the Philippines to Invest Stocks: Puregold Price Club Inc.

One of the fastest-expanding grocery chains in the Philippines is Puregold Price Club Inc. (PSE: PGOLD), with more than 400 branches in the country. The company has a market cap of more than 79 billion pesos, as per MarketWatch.

Puregold Price Club is like the Walmart in the Philippines. It has incredibly devoted customers and a strong retail presence. Additionally, Puregold runs S&R branches, QSR, NE Bodega, and Budgetlane.

Puregold’s roll out of a mobile app with online delivery this year had more than a million downloads and is an expansion of its support for small and medium enterprises. The move is expected to help the company stay ahead of market competition.

Top Companies in the Philippines to Invest Stocks puregold
Puregold in Taguig City Image by insideretail.asia

Top Companies in the Philippines to Invest Stocks: Universal Robina Corp.

Universal Robina Corp. (Stock Code: URC) is a sizable food and beverage corporation in the country with a significant presence in the ASEAN and Oceania markets. Its market cap at the moment is 244 billion pesos, according to MarketWatch.

URC’s market reach expands outside of the Philippines to countries like China, Hong Kong, Indonesia, Malaysia, Oceania, Singapore, Thailand, and Vietnam. Famous brands like Chippy, Piattos, Cream-O, Nips, Cloud 9, C2, Great Taste, Swiss Miss, Nissin, Vitasoy, and many more can be found in the company’s portfolio.

Top Companies in the Philippines to Invest Stocks: Metropolitan Bank & Trust Co.

Metropolitan Bank & Trust Co., also commonly known as Metrobank, (PSE: MBT) has been around for more than 50 years and is one of the top 3 banks in the Philippines. The company is also among the top blue-chip stocks in the nation.

Metrobank has a current market cap of 222.5 billion pesos, as per MarketWatch. The company reported a net profit worth 15.6 billion pesos in the first half of this year.

Top Companies in the Philippines to Invest Stocks: Converge Information and Communications Technology Solutions Inc.

Telecom service provider Converge Information and Communications Technology Solutions (PSE: CNVRG) offers top-notch services and high-speed internet to household consumers and large companies. It is one of the biggest publicly traded firms in the Philippines with a market cap of over 93 billion pesos, MarketWatch said.

Converge is one of the Philippines’ fastest-growing firms and is included in the PSE index. Converge is also a great option if you’re looking for the best tech stock with strong financials in the Philippine market, and the business is still actively working to grow its paid internet subscriber base.

Top Companies in the Philippines to Invest Stocks: Metro Pacific Investments Corp.

In the Philippines, Metro Pacific Investments Corp. (PSE: MPI) is a prominent holding corporation for infrastructure and investment management. Power, water, toll roads, health services, light rail, and logistics are among the primary operations of the company.

In addition to regional investments in Vietnam, Thailand and Indonesia, MPI owns a sizeable share of the Philippine Toll Roads.

Meralco, the largest private electric distribution provider in the Philippines, and Global Business Power are both majority owned by Metro Pacific Investments. The business also holds significant stocks in Maynilad, Metro Pacific Water, MetroPac Movers, Metro Pacific Hospitals, and Light Rail Manila Corp.

Top Companies in the Philippines to Invest Stocks: Final Thoughts

Buying into the stock market fits a long-term investment strategy that’s great for goals with lengthy time frames. Since you incur the risk of losing money due to market fluctuation rather than making money owing to the market’s overall success, it is not intended to be utilized for quick and easy wins. Only invest funds that you won’t require in the near to midterm.

Stock market investing suits neither those who lack courage nor those who have a little taste for risk. It’s one of the most volatile assets to have in your portfolio as the stock price of an organization could so easily plummet depending on the market and the public sentiment.

However, high risks also carry tremendous returns. Due to the erratic nature of stocks, investors might profit greatly when a company succeeds. Stocks that surge can give significant returns at their top, in contrast to other passive income-generating investments that are low-risk and low-reward.

If you’re wondering when to buy stocks in the Philippines, just bear in mind that the greatest time to purchase them is when they are undervalued. This is applicable not only in the country but in stock investments in general.

Working with a financial adviser will help you a great deal if you’re interested in and are ready to invest in one or all of the top companies in the Philippines to invest stocks in. I can personally help you to make your first step.

If you want to learn more about investments, you can read our article titled what are the best investment options for UK expats in 2022.

We also have a review of financial institution Dominion Capital Strategies Guernsey.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 500.1 million answers views on Quora.com and a widely sold book on Amazon

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