The Philippine Stock Exchange
The Philippines has a single stock exchange and this is the Philippine Stock Exchange (PSE). Although the Philippine Stock Exchange is small and young compared to the nearby stock exchanges in Singapore and Hongkong, the exchange has been an avenue for the relatively young stock trading sector of the Philippine.
At present, the Philippine Stock Exchange is one of the major stock exchanges and best performing in Southeast Asia.
The Philippine used to have two stock exchanges, the Manila Stock Exchange (MSE) and the Makati Stock Exchange (MkSE). These two companies traded the same stocks.
After 30 years of operation of both the MSE and the MkSE, the merging of these two exchanges occurred in 1992, thereby creating the Philippine Stock Exchange.
There are two trading floors for the exchange. The principal trading floor is at the Tektite tower, Exchange Road, Ortigas Center, Pasig City. The Tektite tower is also home to the main office of the PSE.
The other trading floor is located at the Ayala Tower 1 and Exchange Plaza, Ayala Avenue corner Paseo de Roxas, Makati City.
As of this writing, the Philippine Stock exchange has a benchmark of 30 blue-chip companies. Reports from the PSE state that there will other companies to be included in the blue chip index by December 2006.
Information that has been taken from the website of the Philippine Stock Exchange states that:
"As of 28 February 2006, the Philippine Stock Exchange has a total of 238 listed companies.
Stocks listed in the PSE are classified into six sectors, namely Financials, Industrial, Holding Firms, Property, Services, and Mining & Oil. Companies are classified according to the business that generates the bulk of their revenues.
Companies engaged in banking, investments, and finance are under the Financials sector.
The Industrial sector includes companies active in electricity, energy, power & water; food, beverage & tobacco; construction, infrastructure & allied services; chemicals; and diversified industrials.
Diversified companies engaged in three or more businesses classified in different industries, any of which does not dominate revenue, are classified under Holding Firms.
Companies engaged in land and property development are classified under the Property sector.
The Services sector includes companies involved in media, telecommunications, information technology, transportation services, hotel & leisure, education, and diversified services.
The Mining & Oil sector includes companies engaged in mineral extraction and in oil exploration, extraction and production."
The values of shares that are traded on the Philippine Stock Exchange have risen to dramatic levels during the last 5 years. As of November 2006, Philippine shares have risen to their highest levels in that last 9 years.
This rise has been the result of the stable perceptions on the economy, particularly on the on-going bullish atmosphere that continues to characterize the stock market even up to the present time.
Several economic indicators affect the stock market. In particular, the major indicators include interest rates, foreign exchange, and growth rates. If these indicators present favorable figures that correlate with perceived economic and market behaviors, market performance increases.
One of the major contributing factors that has recently made waves at the Philippine Stock Exchange is the fact that the Philippine Peso (PHP) has been strengthening to its highest levels in the last 4 years, appreciating around the 49 level against the US dollar, breaking the long unseen 50.0 level.
From 2002 to 2005, the Philippine peso has swung around the 54 to 56 level against the US dollar. In the first half of 2006, when world oil prices steadily rose, the peso remained stable before continuing to appreciate at its present level, thereby making investors bullish about investing in the stock market.
To date, the Philippine Long Distance Telephone Company (PLDT) is the most actively traded stock in the Philippine Stock Market. PLDT is the largest telephone company and telecommunications carrier in the Philippines. PLDT is also 100% owner of SMART Communications Inc., the Philippine's largest mobile phone operator.
Information about the Philippine Stock Exchange, criteria for listing, company disclosures, a wealth of pertinent information about stock exchange guidelines, and some information about companies traded on the exchange, can be seen from their website.
Other readings: Wikipedia
A1 Permalink : Philippine Travel | top of page