Foundations of Data Science Final Project Presentation Descriptive Analysis of the Philippine Stock Market Jose Arvin De Guzman Bernard Evan Jamon William Raymond Revilla De La Salle University Manila Data Science Institute

1. Foundations of Data Science
Final Project Presentation
Descriptive Analysis of the
Philippine Stock Market
De Guzman, Jose Arvin
Jamon, Bernard Evan
Revilla, William Raymond

2. Outline
2
■ Introduction
■ Problem Statement
■ Data Set & Assumptions
■ Visualizations
■ Conclusions
■ Recommendations

3. Introduction
3
▪ The Philippine Stock Exchange is the national stock exchange of the
Philippines.
▪ PSE provides us a way to invest our money.
▫ Why invest in stocks?
■ Investing in stocks has a high potential in returns.
■ It could be argued that in the long term, no other type of
investment works better than stocks.
▫ On the downside of stocks
■ Stocks could be the most volatile, stocks can dramatically drop in
the short term, and even fall after a protracted period of time.

4. Introduction
4
▪ With the opportunities and risks involved in stocks, using data science could
help us with our choices when we dive into investing and understanding the
stock market.

5. Problem Statement
5
This study aims to analyze the Philippine Stock Market from 2015 to 2019 and to
give us an idea on the things to consider if we were to invest 5 years ago and now.
Specifically, this study attempts to answer the following questions:
1. What are the top 10 PSEi stocks that have grown from year 2015 until 2019?
2. What are the top 10 PSEi stock losers from year 2015 until 2019?
3. What are the top 3 emerging sectors in terms of growth?
4. Which of the PSEi stocks have increased in gain the most per sector?
5. Which of the PSEi stocks that have the lowest gains per sector?
6. What particular months of the year best to “buy” and “sell” these stocks based
on the given trend?

6. Dataset
6
The dataset used for this presentation are daily stock prices from January 5, 2015
to December 27, 2019.
● Sources are PSE Daily Stock Quotes1
and public dropbox folder PSE Data2
● Data are extracted in csv format
● Cleaning are done on the particular csv files before reading in jupyter
notebook:
○ June 23, 2015 (filename: stockQuotes_06232015) - remove excess
columns
○ May 19, 2016 (filename: stockQuotes_05192016) - edited cell F82 due to
error in input: original data - 1,489.98; should be 7,489.98
● 2020 daily stock prices are intentionally excluded from the presentation to
avoid any distortion due to COVID-19 impact (considered fortuitous event)
1
PSE Daily Stock Quotes - http://shared4.info/psequotes/?fbclid=IwAR0SnzgBYu2SgXnhgcGD6-s9iReK5i9pmpIqOaN3x_zlWDd7NwAO2WoIJY0
2
PSE Data - https://www.dropbox.com/sh/9op7uq4qa6qh9j0/AAAKjZ7K31W65oOXkmFLMFLda?dl=0

7. Assumptions
7
● The dataset contains daily details of open, high, low, close, volume, net foreign
of each stock in Philippine Stock Exchange. This project uses the close values
as the stock price for the day.
● Industry analyses consider all stocks classified within each industry. On the
other hand, PSEi stocks shall mean the 30 listed stocks in PSE Composite
Index as of September 2020.

8. Assumptions
8
● Part of the feature engineering is to compute for the daily fluctuations of
stock prices and the daily cumulative percentage gain/loss from January 5,
2015 to December 27, 2019.
● This project uses the cumulative gain in analysing the stock trend. Using the
stock price would make the visualization difficult due to difference in price
ranges of each stock in PSE. On another note, using the daily percentage
fluctuations would result to misrepresentation of the trend.

9. All PSE Composite Index
Stocks
9

10. Comparative Growth per
Sector
10

11. PSEi Stocks Trend under
Financial Sector
11

12. 12
PSEi Stocks Trend under
Industrial Sector

13. 13
PSEi Stocks Trend under
Service Sector

14. 14
PSEi Stocks Trend under
Property Sector

15. 15
PSEi Stocks Trend under
Holdings Sector

16. All Shares and PSEi Shares
Average Monthly Trend
16

17. 17
Average Monthly Trend
Per Sector

18. Conclusions
18
● The top 10 PSEi stocks that have grown from year 2015 until 2019 are SM
Prime Holdings, Inc. (SMPH +150.30%), San Miguel Corporation (SMC +115.79%),
BDO Unibank, Inc. (BDO +43.64%), Ayala Land, Inc. (ALI +33.82%), Security Bank
Corporation (SECB +28.29%), SM Investments Corporation (SM +27.04%), Manila
Electric Company (MER +23.54%), JG Summit Holdings, Inc. (JGS +17.10%), Globe
Telecom, Inc. (GLO +15.43%), Ayala Corporation (AC +12.70%).

19. Conclusions
19
● The top 10 PSEi stock losers from year 2015 until 2019 are PLDT, Inc. (TEL
-65.62%), DMCI Holdings, Inc. (DMC -57.68%), Alliance Global Group, Inc. (AGI
-49.96%), Emperador Inc. (EMP -30.67%), Metro Pacific Investments
Corporation (MPI -25.16%), Universal Robina Corporation (URC -24.08%), GT
Capital Holdings, Inc. (GTCAP -23.00%), Metropolitan Bank and Trust Company
(MBT -21.07%), Aboitiz Power Corporation (AP -20.37%), Megaworld
Corporation (MEG -16.63%).

20. Conclusions
20
● The top 3 emerging sectors in terms of growth are Property Sector, Holdings
Sector, and Financial Sector.

21. Conclusions
21
● The PSEi stocks have increased in gain the most are SM Prime Holdings, Inc.
(SMPH +150.30%) for Property Sector, San Miguel Corporation (SMC +115.79%)
for Holdings Sector, BDO Unibank, Inc. (BDO +43.64%) for Financial Sector,
Manila Electric Company (MER +23.54%) for Industrial Sector, and Globe
Telecom, Inc. (GLO +15.43%) for Service Sector.

22. Conclusions
22
● The PSEi stocks that have the lowest gains per sector are PLDT, Inc. (TEL
-65.62%) for Service Sector, DMCI Holdings, Inc. (DMC -57.68%) for Holdings
Sector, Emperador Inc. (EMP -30.67%) for Industrial Sector, Metropolitan Bank
and Trust Company (MBT -21.07%) for Financial Sector, and Megaworld
Corporation (MEG -16.63%) for Property Sector.

23. Conclusions
23
● A pattern could be seen on a monthly growth basis every year:
○ Best months to buy stocks is around July-September
○ Best months to sell stocks is around December-January

24. Summary
24
From 2015 to 2019,
➢ The top PSEi stocks gainers are SMPH, SMC, BDO, ALI, SECB, SM, MER, JGS, GLO, and AC.
➢ The top PSEi stock losers are TEL, DMC, AGI, EMP, MPI, URC, GTCAP, MBT, AP, and MEG.
➢ The emerging sectors in terms of growth are Property Sector, Holdings Sector, and
Financial Sector.

25. Summary
25
➢
➢ The PSEi stocks that have increased in gain the most are SMPH for Property Sector, SMC
for Holdings Sector, BDO for Financial Sector, MER for Industrial Sector, and GLO for
Service Sector.
➢ The PSEi stocks that have the lowest gains per sector are TEL for Service Sector, DMC for
Holdings Sector, EMP for Industrial Sector, MBT for Financial Sector, and MEG for Property
Sector.
➢ The months of the year best to buy PSEI stocks based on trend is from July to September
and to sell from December to January.

26. Recommendations
26
➢ Further exploration on other stocks since the researchers only considered 30
stocks that is currently listed in the composite index of the PSEi.
➢ See how Property, Finance and Holding stocks are currently growing, looking at
available stocks in those industries could highlight opportunities for investment.

27. Recommendations
27
➢ The presentation is focused on the historical trend and it is important to do
some additional research on other factors that would affect movement of
stock prices.
➢ Future researchers may also study the impact of the COVID-19 pandemic on
the gains and losses of PSEi Stocks.

28. Thank you!