If you’re investing from abroad, the Philippine equity market offers access to consumer growth, infrastructure, and resilient banking franchises. The PSE’s benchmark, the PSEi, concentrates on 30 large-cap names, but breadth across sectors allows both income and growth strategies.
Onboarding and documentation. Choose a broker authorized by the PSE that services foreign accounts. You’ll typically submit a passport, address verification, FATCA/CRS forms where applicable, and may need a Philippine TIN. Decide whether to custody shares through the broker’s omnibus account or a third-party custodian. Funding wires in USD are common; conversions to PHP can be executed by your bank, custodian, or broker—compare FX spreads.
Know the rulebook. Foreign participation is restricted in specific sectors by law and the constitution. Listed companies disclose their “foreign ownership room,” and trading systems prevent breaches. Property developers, retailers, banks, and conglomerates are usually open to non-residents, but always verify the current cap and room before initiating a position.
Instruments to consider. FMETF provides a one-ticket approach to the market, useful for initial exposure or cash parking. Philippine REITs have grown into a meaningful segment, offering yield and exposure to office, malls, industrial parks, and even energy-affiliated assets. Pair a REIT income base with a handful of liquid cyclicals and defensives to smooth portfolio volatility.
Execution details and costs. Trading occurs in PHP during local hours. Settlement conventions are generally T+2; corporate action timelines can be tight, so ensure your broker communicates cutoffs. Costs include commission (often tiered by volume), small PSE and clearing fees, and a stock transaction tax applied to sales (commonly referenced at 0.6%). Dividends are subject to final withholding for non-residents; treaty benefits may reduce rates if proper documentation is in place.
Finding an edge. Track inflation, policy rate decisions, infrastructure programs, and remittance flows—all key to earnings for consumer and property plays. Use PSE EDGE for disclosures and study liquidity profiles; beyond the top 20 names, average daily turnover can fall quickly. For small caps, use limit orders and be patient with fills. Backtest entries around earnings or macro prints if your broker provides historical data tools.
Operational safeguards. Confirm corporate action handling (rights, SROs, tender offers), voting mechanics, and tax certificates issuance. Test your broker’s service levels with a small initial trade. If managing a larger portfolio, formalize FX policy (spot vs. forwards) and define maximum position sizes by daily turnover.
The Philippine market rewards patience and discipline. Start with broad exposure, layer in high-conviction names, and let disclosures—not hype—drive position changes. Costs and foreign room are the two details that most often trip up newcomers; build your workflow around checking both every time.
