Philippine Stock Exchange
|
The Philippine Stock Exchange Plaza along Ayala Avenue in Makati City, The Philippines |
The
Philippine Stock Exchange () is the only
stock exchange in the
Philippines and is also one of the major stock exchanges in
Southeast Asia. The PSE has two trading floors, one in
Makati City's Central Business District and one at its headquarters in
Pasig City.
The Philippine Stock Exchange was formed from two 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 merged into the present-day Philippine Stock Exchange.
In June
1998, the Philippine Securities and Exchange Commission granted the PSE a "Self-Regulatory Organization" (SRO) status, meaning the bourse can implement its own policies and establish penalties on erring stock brokers, traders, and companies.
In
2001, one year after the enactment of the Securities Regulation Code, the PSE was transformed from a non-profit, no-stock, member-governed organization into a fledgling revenue-earning corporation headed by a president and a board of directors. The PSE eventually listed its shares on the exchange (traded under the ticker symbol
PSE) and eventually ventured on into new fields such as debt securities.
|
The most famous monument of Sen. Benigno Aquino, Jr. is dwarfted by the PSE's Makati tower at Ayala Avenue corner Paseo de Roxas. (Photo taken by JVB Aquino) |
The PSE before the mid-1990s was reminiscent of other outcry
stock exchanges found throughout
Southeast Asia before the technological advancements made during the last decade. 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
Intelligent Wave Philippines. Later that year, on
June 15, the former Makati Stock Exchange adopted the
MakTrade trading system, the same system used on the
Stock Exchange of Thailand and developed by the
Chicago Stock Exchange. Both systems were linked on
March 25,
1994, producing one set of opening and closing share prices, but orders were queued up on two different books.
Two years later, on
November 13,
1995, both systems were unified when the PSE adopted the "Unified Trading System" (UTS) operating under the MakTrade system.
When the PSE started trading bonds on
January 15,
2001, the system was modified to allow stock brokers to trade bonds using the same terminal. Also, the
PSE-RoSS Interface System, a system allowing stock brokers to access the Philippine Bureau of the Treasury's Registry of Scriptless Securities (BTr-RoSS), was made operational on the same day.
*Listed companies: 238
*Brokerage houses: 200 +, but only 130 operational
The PSE is split into eight indices based on a company's main source of
revenue. They are namely:
*
PSE All Shares Index (ALL)
*
PSE Composite Index (PHISIX)
*
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)
A new classification system went into effect on
January 2,
2006, the first trading day of 2006. Some indices, such as the PHISIX, were kept, while others were either merged or dropped.
The PSE then was split into eight indices (different from the current classification) based on their sector industry classification when companies file their articles of incorporation. They were namely:
*PSE All Shares Index (ALL)
*
PSE Commercial/Industrial Index (CI)
*PSE Composite Index (PHISIX)
*
PSE Financial Index (BF)
*
PSE Mining Index (MIN)
*
PSE Oil Index (OIL)
*PSE Property Index (PTY)
*
PSE Small and Medium Enterprise Index (SME)
*
Philippine Stock Exchange*
Philippine Stock Market Authority Finance Manila*
Philippine Stock Market Forum of Finance Manila*
Philippine's Stock Exchange to Kickoff New Industry Classification System in 2006 by Ryan Borja
