The Philippine Stock Exchange (PSE) saw a 50 percent surge in investor accounts in 2024, climbing to 2.86 million from 1.91 million in 2023, marking the highest annual increase since tracking began in 2008. PSE president and CEO Ramon S. Monzon attributed the record growth to the increasing accessibility of digital trading platforms.
The sharp rise, largely fueled by online retail participation, underscores the impact of technology on democratizing access to capital markets. Platforms like PSE EASy, which now supports direct app-based subscriptions to IPOs and follow-ons, and the PSE EQUIP premium data service, have helped lower entry barriers for small investors.
Despite the rise in accounts—99 percent of which are retail and local—Monzon acknowledged that retail investors only account for 16 percent of total market turnover. The PSE is betting on a recent legislative change—Republic Act No. 12214, which slashes the stock transaction tax from 0.6 percent to 0.1 percent—to boost trading volumes and deepen market participation.
While the growth in the investor base is promising, the key challenge remains in translating this into higher market liquidity. The coming reduction in trading costs, along with enhanced investor education initiatives, may prove critical in unlocking broader retail activity, a potential tailwind for brokerages, fintech platforms, and IPO sponsors eyeing greater domestic participation.
