Philippine Stock Exchange

Philippine Stock Exchange
Pamilihang Sapi ng Pilipinas
Type Stock exchange
Location Metro Manila, Philippines
Coordinates 14°33′22″N 121°1′22″E / 14.55611°N 121.02278°E / 14.55611; 121.02278
Founded
  • (MSE)  August 8, 1927[1]
  • (PSE)   December 23, 1992
Owner The Philippine Stock Exchange, Inc.
Key people
  • José T. Pardo  (Chairman)
  • Hans B. Sicat  (CEO)
Currency Philippine peso (₱)
No. of listings 344  (2012)
Market cap
  • ₱ 10.204 trillion   (Feb 2013)
  • $ 255.104 billion  (2013)[2]
Website www.pse.com.ph

The Philippine Stock Exchange (Filipino: Pamilihang Sapi ng Pilipinas; PSE: PSE) is the national stock exchange of the Philippines. It has been in continuous operation since its inception in 1927. Currently, it 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.[3] The PSE is overseen by a 15-member Board of Directors, chaired by José T. Pardo.

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.

Trading on the PSE pre-opens at (all times PHT:) 9:00 am; opens at 9:30 am; is in recess between 12:00 and 1:30 pm; pre-closes at 3:15 pm; in run-off from 3:20 pm; and closes at 3:30 pm.[4]

History

Philippine Stock Exchange Plaza in Makati

The Philippine Stock Exchange was formed from the country’s two former stock exchanges, the Manila Stock Exchange (MSE), established on August 12, 1917, and the Makati Stock Exchange (MkSE), which was established on May 15, 1953.

Although both the MSE and the MkSE traded the same stocks of the same companies, the bourses were separate stock exchanges for nearly 40 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.

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.[5]

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 .[6] 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.[7] 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

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 September 15, 2014, the Philippine Stock Exchange has 261 listed companies with a total market capitalization of Php14.04 trillion. There are 133 active trading participants registered at the PSE.[8]

See also

References

  1. ↑ See "History" tab at http://www.pse.com.ph/corporate/home.html
  2. ↑ http://pse.com.ph/stockMarket/marketInfo-marketActivity.html?tab=1&indexName=All%20Shares
  3. ↑ Pastrana, David. "Philippine Stock Exchange BGC: A Brand New Home for Stock Trading". http://kmcmaggroup.com. KMC MAG Group. Retrieved Oct 23, 2014. External link in |website= (help)
  4. ↑ http://www.philstar.com/business/2013/10/17/1245995/pse-extends-pre-close-period
  5. ↑ "PSE named 2015 best stock exchange in Southeast Asia". Rappler. 4 January 2016. Retrieved 5 January 2016.
  6. ↑ Dumlao, Ubac, Remo. "Early Easter gift for PH". Retrieved 28 March 2013.
  7. ↑ Alegado, Siegfrid O. "PSEi retakes 7,200 level in 29th record close". Retrieved 10 May 2013.
  8. ↑ http://pse.com.ph/stockMarket/marketInfo-marketActivity.html?tab=1&indexName=All%20Shares
  9. ↑ http://www.pse.com.ph/stockMarket/listedCompanyDirectory.html

External links

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