Introduction to Philippine Stock Exchange

by Gily Tenorio on December 3, 2011

in Stocks

As I posted before in this blog, stocks are traded in a stock exchange through a stock broker. As an individual investor, you cannot buy or sell directly in the stock market. Therefore, it is important to open a stock trading account so you can buy and sell stocks listed in a stock exchange.

Overview of PSE

In the Philippines, you can buy or sell stocks through the Philippine Stock Exchange (PSE) which is the sole stock exchange or market operating in the Philippines. PSE is also a company listed in the stock market with trading symbol PSE and it is one of the oldest stock exchanges in Southeast Asia.

PSE was formed from the two stock exchanges in the country before: Manila Stock Exchange (MSE) and the Makati Stock Exchange (MkSE). It was founded  on December 23, 1992 with both of the exchanges were combined into just one stock exchange. At the present, Jose T. Pardo is the chairman of PSE with board of directors. All stock tradings of listed companies in the Philippines are done in PSE. So you can see all registered companies in the Philippine stock market if you will visit PSE website at www.pse.com.ph.

 

 

Companies and Indices of Philippine Stock Exchange

PSE is composed of various companies in different sectors and industries. These sectors include property, holding companies, mining industry, media, service, manufacturing, food and more. Each of the sector has its own index to track the performance of each industry. PSE Index or PSEi is the most popular index of the Philippine stock market because it tracks the performance of the biggest and most actively traded companies in the country.

Below you can see the details of PSE sectors and the compnaies included in it. It has eight constituent indices that includes the following:

1. PSE All Shares Index (ALL)

2. PSE Composite Index (PSEi)

3. PSE Financials Index (FIN)

4. PSE Holding Firms Index (HDG)

5. PSE Industrial Index (IND)

6. PSE Mining and Oil Index (M-O)

7. PSE Property Index (PRO)

8. PSE Services Index (SVC)

PSE Composite Index (PSEi) is the main index of the PSE composed of the 3o biggest companies in the Philippines.  It is one of the indicators of the general state of the Philippine economy. The companies included in PSEi are the following as of September 12, 2011  in alphabetical order:

  1. Aboitiz Equity Ventures (PSE: AEV)
  2. Aboitiz Power (PSE: AP)
  3. ABS–CBN Corporation (PSE: ABS)
  4. Alliance Global Group, Inc. (PSE: AGI)
  5. Ayala Corporation (PSE: AC)
  6. Ayala Land (PSE: ALI)
  7. Banco de Oro Unibank, Inc. (PSE: BDO)
  8. Bank of the Philippine Islands (PSE: BPI)
  9. Belle Corporation (PSE: BEL)
  10. Cebu Air, Inc. (PSE: CEB)
  11. DMCI Holdings (PSE: DMC)
  12. Energy Development Corporation (PSE: EDC)
  13. First Gen Corporation (PSE: FGEN)
  14. Globe Telecom (PSE: GLO)
  15. International Container Terminal Services Inc. (PSE: ICT)
  16. JG Summit Holdings (PSE: JGS)
  17. Jollibee Foods Corporation (PSE: JFC)
  18. Manila Electric Company (PSE: MER)
  19. Manila Water Company (PSE: MWC)
  20. Megaworld Corporation (PSE: MEG)
  21. Metro Pacific Investments Corporation (PSE: MPI)
  22. Metropolitan Bank and Trust Company (PSE: MBT)
  23. Philex Mining Corporation (PSE: PX)
  24. Philippine Long Distance Telephone Company (PSE: TEL)
  25. Robinsons Land Corporation (PSE: RLC)
  26. San Miguel Corporation (PSE: SMC)
  27. Semirara Mining Corporation (PSE: SCC)
  28. SM Investments Corporation (PSE: SM)
  29. SM Prime Holdings (PSE: SMPH)
  30. Universal Robina Corporation (PSE: URC)

The PSE All Shares Index is the broader index of the exchange composed of all companies in PSE while the remaining indices are sector indices according to the company’s main source of income. As of December 31, 2010, PSE had 253 listed companies with a total market capitalization of US$202 billion. There are 132 active participants registered at the PSE with a total of 184 trading companies.

 

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