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Philippine Stock Exchange

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Philippine Stock Exchange
Pamilihang Sapi ng Pilipinas
PSE Logo
TypeStock exchange
LocationPasig City, Philippines
Coordinates14°33′22″N 121°1′22″E / 14.55611°N 121.02278°E / 14.55611; 121.02278
FoundedDecember 23, 1992
OwnerThe Philippine Stock Exchange, Inc.
Key peopleJosé T. Pardo, Chairman
CurrencyPhilippine Peso (₱)
No. of listings344 (2012)
Market cap₱10.204 trillion (February 2013)
$255.104 billion (2013)[1]
Websitewww.pse.com.ph

The Philippine Stock Exchange (Filipino: Pamilihang Sapi ng Pilipinas) (PSE: PSE) 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. It currently maintains two trading floors, one at its headquarters at the PSE Plaza Ayala Triangle, Ayala Tower One in Makati City's Central Business District, and one at the Philippine Stock Exchange Centre (Tektite Towers), Ortigas Center in Pasig City. The PSE is composed of a 15-man Board of Directors, chaired by José T. Pardo.

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.

Trading on the PSE trading starts at 9:30 am PHT and ends at 12:00 pm, pauses for a 1 hour 30 minute break, and resumes trading from 1:30 pm to a 3:30 pm session closure.

History

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.

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.

Business

On January 4, 1993, the former Manila Stock Exchange started the computerization of its operations using the Stratus Trading System (STS) with a company called Equicom. On June 15, the former Makati Stock Exchange adopted the MakTrade trading system. Both systems were linked on March 25, 1994 to produce a One Price-One Market exchange. Two years later, on November 13, 1995, the implementation of the Unified Trading System (UTS) allowed the use of a single-order-book system on a MakTrade software where all the orders are posted and matched in one computer.

In October 2004, the Securities Clearing Corporation of the Philippines (SCCP), a clearing and settlement agency for depository eligible trades, became a wholly owned subsidiary of the PSE. The SCCP acts as the settlement coordinator and risk manager for broker transactions as well as administrator of the trade guaranty fund.

In 2005, the PSE adopted an online daily disclosure system (ODiSy) to improve the transparency of listed companies and ensure full, fair, timely and accurate disclosure of material information from all listed companies. The ODiSy provides a 24/7 online system access for the submission of all types of disclosures.

On July 26, 2010, the PSE launched its new trading system, PSEtrade, which replaced the MakTrade system. The system was acquired from the New York Stock Exchange.

Record highs

On March 2, 2012, the PSE Composite hits 5,000 mark the highest record close. However, in December 12, 2012, almost ten months after, it neared the 5,800 mark closing in 6,000 near the end of the year.

On January 7, 2013, the PSE Composite gets to all time record at 6,000 mark. After almost a 30-day period, the stocks broke again another record on February 13, 2013 by reaching the 6,500 mark.[2]

More than a month later, it again broke another record after Fitch Group upgraded the Philippines for the first time to Investment-Grade status by ending the trading day at 6,847.47.[3]

On May 10, 2013, the PSE Composite achieved its 29th record close for the year closing at 7,262.38, surpassing the previous record of 7,215.35 on May 3.[4]

Indices and components

The PSE has eight constituent indices:

The PSEi is the main index of the PSE, while the All Shares Index is the broader index of the exchange. The remaining six indices are sector indices based on a company's main source of revenue. Although listed in an index, companies are listed on the PSE under the First Board, Second Board or the Small and Medium Enterprises Board based on market capitalization.

As of February 6, 2013, the Philippine Stock Exchange has 344 listed companies with a total market capitalization of US$255.1 billion. There are also 134 trading participants registered at the PSE.[5]

See also

References

  1. ^ http://pse.com.ph/stockMarket/marketInfo-marketActivity.html?tab=1&indexName=All%20Shares
  2. ^ Dumlao, Doris C. "Philippine stocks breach 6,500 for first time in history". Retrieved February 13, 2013.
  3. ^ Dumlao, Ubac, Remo. "Early Easter gift for PH". Retrieved March 28, 2013.{{cite web}}: CS1 maint: multiple names: authors list (link)
  4. ^ Alegado, Siegfrid O. "PSEi retakes 7,200 level in 29th record close". Retrieved May 10, 2013.
  5. ^ http://pse.com.ph/stockMarket/marketInfo-marketActivity.html?tab=1&indexName=All%20Shares

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Philippine_Stock_Exchange&oldid=554445062"