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It’s the textbook investment strategy – save consistently and let time and compound interest do its work. That is what Carl Edison Balagtas did in 2016 when he started socking half of his monthly salary into the Philippines stock market in hopes of securing his future.

Ten years on, that strategy did not just fall short – it turned out to be one of the worst investment decisions the Manila-based lawyer could’ve made. “I was hoping the stock market would be the vehicle to achieve my goal, but it did not turn out that way.”

Balagtas’s experience reflects a deeper malaise in the Philippine equities market, which has persistently lagged behind regional and global peers. Over the past decade, the benchmark Philippine Stock Exchange Index has tumbled 20 per cent, making it the worst performer among global benchmarks tracked by Bloomberg.
By contrast, a gauge of Asia-Pacific stocks has jumped 72 per cent, while neighbouring Indonesia’s Jakarta Composite Index has surged 82 per cent.
The index tumbled as much as 2.8 per cent on Monday, extending the year’s decline to over 11 per cent, the weakest showing in Asia. Structural challenges like limited market diversity, sluggish turnover and a dearth of new listings continue to weigh on sentiment, while a major government scandal has further eroded investor confidence.

While regulators have pledged reforms to improve liquidity and boost participation, analysts say more aggressive action is needed.



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