The Philippine Stock Exchange, Inc. (Filipino: Pamilihang Sapi ng Pilipinas; PSE:Â PSE) is the national stock exchange of the Philippines. The exchange was created in 1992 from the merger of the Manila Stock Exchange and the Makati Stock Exchange. Including previous forms, the exchange has been in operation since 1927.
The main index for PSE is the PSE Composite Index (PSEi) 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 PSE is overseen by a 15-member Board of Directors, chaired by José T. Pardo.
History
On February 3, 1936, the Securities and Exchange Commission announced that it had "relinquished control of the Manila Stock Exchange."
The Philippine Stock Exchange was formed on December 23, 1992 from the merger of the Manila Stock Exchange (MSE) (established on August 12, 1927) and the Makati Stock Exchange (MkSE) (established on May 15, 1963). Both exchanges traded the same stocks of the same companies.
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, the PSE was transformed from a non-profit, non-stock, member-governed organization into a shareholder-based, revenue-earning corporation headed by a president and a board of directors and on December 15, 2003 listed its own shares on the exchange (traded under the ticker symbol PSE).
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.
On June 22, 2015, the PSE launch its new trading system, the PSEtrade XTS, which will replace the PSEtrade system acquired from the New York Stock Exchange. The new trading system will be acquired from the NASDAQ
In 2016, The Marquee Awards of Alpha Southeast Asia magazine recognized PSE as the Best Stock Market in Southeast Asia for the year 2015.
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. In March it again broke another record by ending the trading day at 6,847.47 after Fitch Group upgraded the Philippines for the first time to investment grade status . On May 10, 2013, it achieved its 29th record close for the year closing at 7,262.38, surpassing the previous record of 7,215.35 on May 3. In May 15, 2013, the PSEi hit its 30th all-time high of 7403.65 and ending the day at 7,392.2 <Rappler, May 15, 5:18 PM>. However, the tapering by the Federal Reserves in the United States caused the PSEi to end at 5,889.83.
On April 6, 2015, the PSE Composite hits the 8,000 mark and closes on another record by ending the trading day at 8,053.74. In 4 days it broke another record by ending the trading day at 8,127.48
Current trading floors
Trading on the PSE pre-opens at 9:00 A.M.; opens at 9:30 A.M.; is in recess between 12:00 and 1:30 P.M.; pre-closes at 3:15 P.M.; in run-off from 3:20 P.M.; and closes at 3:30 P.M.
Currently, the exchange maintains two trading floors in Metro Manila: one at its headquarters at the PSE Plaza Ayala Triangle, Ayala Tower One in the Makati Central Business District; and one at the Philippine Stock Exchange Centre (Tektite Towers), Ortigas Center in Pasig. Construction of the Philippine Stock Exchange office tower in Bonifacio Global City is expected to be completed by mid-2016.
Indices and components
The PSE has eight constituent indices:
- PSE All Shares Index (ALL)
- PSE Composite Index (PSEi)
- PSE Financials Index (FIN)
- PSE Holding Firms Index (HDG)
- PSE Industrial Index (IND)
- PSE Mining and Oil Index (M-O)
- PSE Property Index (PRO)
- PSE Services Index (SVC)
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 September 15, 2014, the Philippine Stock Exchange has 261 listed companies with a total market capitalization of Php17.41 trillion. There are 133 active trading participants registered at the PSE.
See also
- List of market opening times-
- Listed Company Directory
References
External links
- Philippine Stock Exchange
- PSE Academy
