COL Financial of bilyonaryo Edward Lee continued its hot streak through the first six months of 2021 as more Pinoys invest in stocks during the pandemic.

COL profits zoomed by 137 percent year on year to P479.5 million during the period as it reined in operating costs and taxes (tax rates dropped from 26.1 percent to 17.8 percent after the passage of CREATE).

COL trims yearend stock index forecast to 8,100

CREATE reduced the corporate income tax rate from 30 percent to 25 percent for large firms and 20 percent for small enterprises to help them recover from the pandemic.

COL revenues surged 74 percent year on year to P820.9 million half due to the rising activity of retail investors.

Commissions rose 113 percent to P300.3 million or more than triple the 35 percent growth in the Philippine Stock Exchange’s average value turnover in the first half.

COL boosted its market share from seven percent to 11 percent year on year with a total of 469,111 clients as of June.

“More retail investors opened accounts as they were encouraged by the strong performance of the stock market during the last three quarters of 2020 and the active trading of third line issues in early 2021. The lockdowns also gave them more time to trade and invest in the stock market,” said COL.

COL is so far up 26 percent to P4.28 from the start of 2021.

COL said net new cash inflows reached P15 billion during the past 12 months. With blue chips retreating 3.3 percent in the first half, non-index stocks led by third line issues accounted for the bulk of the increase in trading volume which largely benefited stock brokers focused on local retail investors.

Local investors accounted for 66 percent of the PSE’s total value turnover from around 53 percent historically. They more than made up for the slack left by foreign investors who unloaded P75 billion worth of stocks in the first half.

The post COL on a roll: Edward Lee’s brokerage firm rides on crest of P1.25B new cash flowing to stock market every month first appeared on Bilyonaryo Business News.