Philippine Stock Exchange
Overview
 
The Philippine Stock Exchange (Filipino
Filipino language
This move has drawn much criticism from other regional groups.In 1987, a new constitution introduced many provisions for the language.Article XIV, Section 6, omits any mention of Tagalog as the basis for Filipino, and states that:...

: Pamilihang Sapi ng Pilipinas) is the national stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

 of the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

. It is one of the oldest stock exchanges in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...

, having been in continuous operation since its inception in 1927. It currently maintains two trading floors, one at the Ayala Tower One
Ayala Tower One
Tower One & Exchange Plaza is one of the tallest and most well-known skyscrapers in the Philippines. It has a height of 160 metres . The building has 35 floors above ground level, and is originally planned to be the first of three towers for the Ayala Triangle...

 in Makati City
Makati City
The City of Makati is one of the 17 cities that make up Metro Manila, one of the most populous metropolitan areas in the world. Makati is the financial center of the Philippines and one of the major financial, commercial and economic hubs in Asia...

's Central Business District, and one at its headquarters in Pasig City
Pasig City
The City of Pasig is one of the city municipalities of Metro Manila in the Philippines and was the former capital of the province of Rizal prior to the formation of this grouping of cities designated as the National Capital Region...

. The PSE is composed of a 15-man Board of Directors, chaired by Jose T.
Encyclopedia
The Philippine Stock Exchange (Filipino
Filipino language
This move has drawn much criticism from other regional groups.In 1987, a new constitution introduced many provisions for the language.Article XIV, Section 6, omits any mention of Tagalog as the basis for Filipino, and states that:...

: Pamilihang Sapi ng Pilipinas) is the national stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

 of the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

. It is one of the oldest stock exchanges in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...

, having been in continuous operation since its inception in 1927. It currently maintains two trading floors, one at the Ayala Tower One
Ayala Tower One
Tower One & Exchange Plaza is one of the tallest and most well-known skyscrapers in the Philippines. It has a height of 160 metres . The building has 35 floors above ground level, and is originally planned to be the first of three towers for the Ayala Triangle...

 in Makati City
Makati City
The City of Makati is one of the 17 cities that make up Metro Manila, one of the most populous metropolitan areas in the world. Makati is the financial center of the Philippines and one of the major financial, commercial and economic hubs in Asia...

's Central Business District, and one at its headquarters in Pasig City
Pasig City
The City of Pasig is one of the city municipalities of Metro Manila in the Philippines and was the former capital of the province of Rizal prior to the formation of this grouping of cities designated as the National Capital Region...

. The PSE is composed of a 15-man Board of Directors, chaired by Jose T. Pardo.

The main index for PSE is the PSE Composite Index
PSE Composite Index
The PSE Composite Index, commonly known previously as the PHISIX and presently as the PSEi, is the main stock market index of the Philippine Stock Exchange....

 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 in the PSE is a continuous session from 9:30 am to 1:00 pm daily, one of the shortest among Asian stock exchanges. In January 2012 a trading extension will be implemented; trading will begin at 9:30 am and end at 12:00 pm, pause for a 1 hour 30 minute break, and resume 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
Securities and Exchange Commission (Philippines)
The Philippine Securities and Exchange Commission is a Philippine state commission responsible for securities laws and regulating the securities industry. The SEC is an agency within the Philippine Department of Finance....

 (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 organization 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. Later that year, 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 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
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

.

Indices and components

The PSE has eight constituent indices:
  • PSE All Shares Index
    PSE All Shares Index
    The PSE All Shares Index is the stock index in the Philippine Stock Exchange in which all of the stocks traded are included in computations for the level of the index.-A:* A. Brown Company * A...

     (ALL)
  • PSE Composite Index
    PSE Composite Index
    The PSE Composite Index, commonly known previously as the PHISIX and presently as the PSEi, is the main stock market index of the Philippine Stock Exchange....

     (PSEi)
  • PSE Financials Index
    PSE Financials Index
    The PSE Financials Index, is the main stock market index of the Philippine Stock Exchange for banks and financial entities.This index is one of the PSE indices also home to companies listed on the PSE Composite Index, namely Banco de Oro Universal Bank, Bank of the Philippine Islands and...

     (FIN)
  • PSE Holding Firms Index (HDG)
  • PSE Industrial Index (IND)
  • PSE Mining and Oil Index
    PSE Mining and Oil Index
    The PSE Mining and Oil Index is the main stock market index of the Philippine Stock Exchange for mining and oil companies.The index is probably one of the few indices of the PSE that do not have companies listed on the PSE Composite Index, with the exceptions of the Lepanto Consolidated Mining...

     (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
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....

. 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
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...

.

As of December 31, 2010, the Philippine Stock Exchange had 253 listed companies with a total market capitalization of US$202 billion. There are also 184 trading participants registered at the PSE, of which 132 are active.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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