'Smart' investors to deepen stock market

While the recent reduction in the cost of trading stocks in the Philippines is expected to boost market activity at the Philippine Stock Exchange (PSE), more needs to be done to develop the local capital market, particularly in investor education.

- By JAMES A. LOYOLA

During the bell-ringing ceremony at the PSE marking the reduction of the stock transaction tax (STT) with the implementation of the Capital Markets Efficiency Promotion Act (CMEPA), PSE President and Chief Executive Officer (CEO) Ramon S. Monzon said that the STT reduction “is not the panacea that will solve our markets liquidity issue.”

“We must complement this STT reduction with continuing initiatives to grow the number of listed firms and expand our product and service offerings,” he stated.