The Emerging Philippine Stock Exchange in Capital Markets

The Philippine Stock Exchange, Inc. (PSE or Exchange) is a private non-profit and non-stock organization. PSE provides a fair, efficient, transparent and orderly market for the purchase and sale of securities such as stocks, warrants, bonds, options and others.

It plays a vital role in the financing of productive enterprises. The PSE brings together companies which aim to raise capital through the issue of new securities. Through the listing of their share in the stock exchange, companies can have easier access to funds.

The Philippine Stock Exchange Composite Index (PSEi) is a major stock market index which tracks the performance of the most representative companies listed on The Philippine Stock Exchange. It is a free-float, capitalization-weighted index. The PSEi has a base value of 6,606.94 as of November 25, 2022.

Consider this: from January 2010 to January 2022, the stock market rose in value by almost 150%, or an annual return of 12.44%. That means if you invested P100,000 in January 2010, you would have nearly P250,000 after 12 years, essentially just by waiting. Keep in mind too that this includes the huge swings caused by the pandemic. Without that, you might have earned even more.

The former Philippine capital market is one of the oldest in Asia. The Manila Stock Exchange was established in 1927. Gold and copper mining stocks dominated trad- ing during the first five decades of operation, and trade in oil stocks caused a boom in the late 1970s.

Reference: https://fglinc.tripod.com/knowstockex.htm https://tradingeconomics.com/philippines/stock-market https://www.rappler.com/business/things-to-know-stock-market-philippines/ https://www.cfainstitute.org/en/research/foundation/2021/apac-capital-markets-philippines https://pdf.usaid.gov/pdf_docs/Pnaca933.pdf https://www.stlouisfed.org/education/tools-for-enhancing-the-stock-market-game-invest-it-forward/episode-1-understanding-capital-markets