2. The Philippine Stock Exchange (PSE)
(Filipino: Pamilihang Sapi ng Pilipinas) is the national
stock exchange of the Philippines. It is one of the oldest
stock exchanges in Southeast Asia, having been in
continuous operation since its inception in 1927.
The main index for PSE is the PSE Composite Index or
PSEi, which is composed of thirty (30) listed companies.
The selection of companies in the PSEi is based on a
specific set of criteria. There are also six additional
sector-based indices.
The Philippine Stock Exchange PSEi Index is a
capitalization-weighted index composed of stocks
representative of the Industrial, Properties,
Services,Holding Firms, Financial and Mining & Oil
Sectors of the PSE.
3. The Philippine Stock Exchange was formed from
the country’s two former stock exchanges, the
Manila Stock Exchange (MSE), established on
August 8, 1927, and the Makati Stock Exchange
(MkSE), which was established on May 27, 1963.
Although both the MSE and the MkSE traded the
same stocks of the same companies, the bourses
were separate stock exchanges for nearly 30 years
until December 23, 1992, when both exchanges
were unified to become the present-day
Philippine Stock Exchange.
4. In June 1998, the Securities and Exchange
Commission (SEC) granted the PSE a "Self-Regulatory
Organization" (SRO) status, which meant that the bourse
can implement its own rules and establish penalties on
erring trading participants (TPs) and listed companies.
In 2001, one year after the enactment of the Securities
Regulation Code, the PSE was transformed from a non-
profit, non-stock, member-governed organisation into a
shareholder-based, revenue-earning corporation headed by
a president and a board of directors. The PSE eventually
listed its own shares on the exchange (traded under the
ticker symbol PSE) by way of introduction on December
15, 2003.
5. Historically, from 1986 until 2013, Philippines
Stock Market (PSEi) averaged 2150 Index
points reaching an all time high of 7392 Index
points in May of 2013 and a record low of 130
Index points in February of 1986.
6. The benchmark index is trading at 16.1 times projected 12-month
earnings, the cheapest since Nov. 23, from a record 20.8 times on
May 15. That compares with MSCI Emerging MarketsIndex’s 9.2
times. The Philippine gauge’s 30-day volatility climbed to 38.5, the
highest since January 2009.
Ayala Corp. (AC), owner of the nation’s largest builder and biggest
bank by market value, tumbled 9.2 percent, the steepest loss since
Oct. 27, 2008. It was the biggest contributor to the index’s decline
today.
Belle Corp. (BEL), which is building a Manila casino with Melco
Crown Entertainment Ltd., plunged 12 percent, the sharpest loss
since Feb. 28, 2007. Aboitiz Equity Ventures Inc. (AEV), which has
investments in power and banks, sank 5.9 percent to the lowest
close since Dec. 28, 2011.
7. The peso rose 0.9 percent to the dollar, paring this month’s loss to
2.8 percent, the worst performance in Asia after the Indian rupee
and Malaysian ringgit. The yield on 8 percent government bonds
due July 2031 fell 50 basis points to 5.25 percent, according to
Tradition Financial Services prices as of 4:06 p.m. The rate rose 5
basis points earlier.
“It’s not a question of valuations anymore,” Rico Gomez, who helps
manage $2.8 billion at Rizal Commercial Banking Corp., said. “It’s
a matter of the level of risk that investors are willing to take.”
Six of the 30-stocks in the nation’s equities benchmark index are
trading at a 52-week low, the most since September 2011, according
to data compiled by Bloomberg. The 14-day relative strength index
for 13 of the index’s stocks is below 30, a signal to some investors
that shares are poised to rise.
8. The local bourse was ranked as the fifth top-
performing stock market globally, with CNN
Money noting growth of 20 percent as of April
24.
The Philippine stock market was topped only
by the of Kuwait, which grew by 23 percent;
Argentina, 27 percent; United Arab Emirates,
28 percent; and Japan, 34 percent.
