philippine stocks exchange essay sample essay

I. History

The Philippine Stock Exchange ( PSE ) . besides known as the Philippine stock exchange incorporated ( PSEi ) is the national stock exchange of the state. began 85 old ages ago. on August 8. 1927. It was created from the two stock exchange of the state which are the Manila Stock Exchange or MSE established on August 8. 1927 and Makati Stock Exchange or MkSE established on May 27. 1963. PSE. a member of World Federation of Exchanges or WFE is one of the oldest stock exchange in southeast Asia ( 1927 up to show ) .

Manila Stock Exchange is the first Stock Exchange in the Philippines and one of the oldest in the Far East founded by W. Eric Little. Gordon W. Mackay. John J. Russell. Frank W. Wakefield and W. P. G. Elliot – five Manila-based business communities to excite concern atmosphere through the addition in trading activity. On the other manus. Makati Stock Exchange was organized by five other business communities viz. Hermenegildo B. Reyes. Bernard Gaberman. Eduardo Ortigas. Aristeo Lat and Miguel Campos which started its operations on November 16. 1965 and was located in Makati. so emerging centre for finance. Both stock exchange allied after 30 old ages since the birth of MkSE on December 23. 1992.

The thought to unify the two exchanges and have it managed by a professional group emerged and was attained when the Philippine Stock Exchange. Inc. was incorporated on July 14. 1992 that was agreed by the leaders of both Bourses ( MSE and MkSE ) to farther consolidate logistics and to rush the development of a more efficient capital market.

On March 4. 1994 the Securities and Exchange Commission granted the Philippine Stock Exchange. Inc. its licence to run as a securities exchange in the state saying that “a unified Stock Exchange is critical in developing a strong capital market and a sustainable economic growing. ” It at the same time cancelled the licences of the MSE and the MKSE.

In June 1998. the Securities and Exchange Commission ( SEC ) granted the PSE a “Self-Regulatory Organization” ( SRO ) position. which meant that the Bourse can implement its ain regulations and set up punishments on mistaking trading participants ( TPs ) and listed companies.

In 2001. one twelvemonth after the passage of the Securities Regulation Code. the PSE was transformed from a non-profit. non-stock. member-governed administration into a shareholder-based. revenue-earning corporation headed by a president and a board of managers. The PSE finally listed its ain portions on the exchange ( traded under the heart symbol PSE ) by manner of debut on December 15. 2003.

II. Introduction

The Philippine Stock Exchange is presently the merely organized exchange in the Philippines licensed for trading stocks and warrants. Its primary end is to guarantee free and crystalline stock market purchasing and merchandising. Its importance can besides be seen in the visible radiation of the full Asiatic market since Peso is an of import currency traded on the foreign exchange market.

The PSE adopted an on-line day-to-day revelation system ( ODiSy ) to better the transparence of listed companies and guarantee full. just. timely and accurate revelation of material information from all listed companies in 2005. The ODiSy provides a 24/7 online system entree for the entry of all types of revelations. Then. on July 26. 2010. the PSE launched its new trading system. PSEtrade. which replaced the MakTrade system which was acquired from the New York Stock Exchange. And on March 3. 2012. the PSE Composite hits 5. 000 grade the highest record stopping point.

PSE was cited as holding the Most Admired Board of Directors by circular Business Mirror in the recent Asia CEO Awards at the Newport Performing Arts Theatre. Resorts World Manila.

The World Federation of Exchanges recognized the PSE as the world’s top executing market in 2011 for turn overing out a new trading system. widening trading hours. implementing multiple regulative and administration sweetenings and raising its international profile among the ASEAN member-countries.

It is headed by Mr. Jose T. Pardo. the president and made up of 15 people Board of Directors. The chief index for PSE is the PSE composite index or PSEi and it is composed of 30 listed companies as of December 31. 2010. There are besides 184 trading participants registered at the PSE of which 132 are active. The Philippine Stock Exchange had 253 listed companies with a entire market capitalisation of 8. 9 trillion pesos or 202 billion US dollar in 2010.

Merely late ( Feb. 2012 ) . Filipino stocks largely lower on heightened euro debt crisis. The Filipino stocks closed largely lower in thin trading as the continues heebie-jeebiess over the euro debt crisis. heightened by the chance of Greece defaulting on its maturing duties. kept investors on the out of boundss. as reported by Gma intelligence.

III. Overview

Philippine Stock Exchange. Inc. defined

The Philippine Stock Exchange. Inc. ( PSE or Exchange ) is a private non-profit and non-stock organisation created to supply and keep a just. efficient. transparent and orderly market for the purchase and sale of securities such as stocks. warrants. bonds. options and others.

Role of the PSE

The PSE convey together companies which aim to raise capital through the issue of new securities and it besides facilitates the merchandising and purchasing of the issued stocks and warrants. It provides a suited market for the trading of securities to persons and organisations seeking to put their economy or extra financess through the purchase of securities.

PSE’s Functions

A. Protecting the involvement of the puting populaceB. Developing and keeping an efficient. carnival. orderly and crystalline market.Efficient. Means that orders are executed and minutess are settled in the fastest possible manner. Some reforms have been instituted or are being carried out by the PSE to do the market more efficient. such as: · installing of to the full automated trading system ; · installing of computing machine trading terminuss in metropoliss outside Metro Manila to promote the entry of investors ; and creative activity of a cardinal cleansing and depositary system to mobilise stock certifications and let transportation of portions and financess by book entry.

Fair. Means that the PSE assures that no investor will hold an undue advantage over another. market participant in trading by pull stringsing monetary values and prosecuting into insider trading. Insider trading is the act of purchasing or selling a peculiar stock based on certain privileged information which is non available to the public as such it is considered as illegal and prohibited by the PSE.

Market Transparency. Transparency returns from the premise that the investor can merely do informed and intelligent information about the peculiar sock he wants to purchase. Such information would include stock monetary value information. corporate conditions and developments.

How is the PSE managed?

One of the non-broker members heads the Exchange. appointed by the Board as the President and Chief Executive Officer ( CEO ) . The President. along with the professional direction of the PSE. executes the policy findings of the Board and ensures that the Exchange is runing expeditiously. It carries out for the members. listed companies and exchange system to guarantee that stock market operation in the Philippines is kept within the criterions of equity. transparence. professionalism. trust and unity. Additionally. it sets the regulations and ordinances of the Exchange. proctors its execution and ensures that the puting populace is given protection in the dealing of their investings. The Exchange besides ensures that all legal demands under the Corporation Code and the Revised Securities Act are met.

PSE Organizational Functions

The functional duties of each section are as follows:Lists and Disclosure Group This group is composed of the undermentioned sections: Listing Processing. Legal Advisory and Corporate Disclosure. It processes and evaluates naming applications. behaviors legal due diligence. and proctors conformity to go oning listing demands including revelation of listed companies. It besides coordinates IPO ( initial public offering ) distribution.

Conformity and Surveillance Group This group acts as the constabulary of the Exchange. It is composed of the Compliance Audit Department. Special Investigation Department. Market Surveillance Department and Legal Section. The group conducts legal audit and reexamine aside from scrutinizing of member-brokers books and operations. It besides monitors the member’s conformity to put regulations and ordinances and enforces appropriate countenances to lawbreakers or mistaking member-brokers. It takes duty in the operation of the surveillance activity. to determine that there are no illegal posters and traffics made in any of the issues listed in the Exchange.

Operations/Automated Trading Group Placed under this group are the Computer Operations Unit. Systems Development Unit and Systems Integration and proficient Support Unit along with the Trading & A ; Settlement Department. Administration Department and PSE Plaza Operations Department to work as one group. It is considered as one of the most critical duty countries in the organisation since it handles the operation of the machine-controlled trading and glade and colony activities for stock operations.

The Automated Trading Group examines and controls the monitoring. logging and analysis of computing machine system resource use ; the care of web connexions of all workstations at the trading floor and distant offices ; pull offing of database of off-floor installed sites ; and the execution and integrating of the different constituents of the trading and office systems.

On the other manus. the Trading and Settlement Department proctors conformity of member-brokers to the glade and colony demands of the colony Bankss and cardinal depositary. It coordinates with these bureaus and the custodian Bankss. both local and foreign. any trading disagreements. abnormalities or colony concerns of the member-brokers and puting populace.

The Administration Department and the PSE Plaza Operations Department handles the edifice care. security and disposal every bit good as the procurance direction and use of supplies and equipment including the day-to-day administrative demands of the Exchange. It is besides responsible for the day-to-day airing of all the listed companies’ corporate proclamations along with the foreign citation study.

Finance and Investment Group The group is responsible for the direction of the company’s fiscal resources. It is composed of the Accounting Department. Treasury Department. Payroll and Budget Section and Investments Monitoring Section which handles the care of book of histories. readying of fiscal statements and budget. direction and arrangement of PSE financess. monitoring of histories receivables and charge of histories.

Business Development and Information Group This group is comprised of the undermentioned: Product Development Department. Market Development Department. Research and Public Information Department. Corporate communications Department. PSE Training Institute and PSE Rule Book/Task Force Quality Unit.

The Product Development Department is in charge of the enlargement. development and packaging of domestic and foreign fiscal merchandises. equity-related securities. debt-related securities and other signifiers of securities and derived functions. It coordinates with private concerns. authorities bureaus and associations in the overall development and packaging of the securities. derived functions and trading installations.

The Market Development Department handles the enlargement. development and monitoring of the investor base for both domestic and foreign market on an single and institutional degree. It looks at the PSE trading operation’s presence and placement in the domestic. regional. and international markets including the enlargement and development of market intermediation services and installations covering secondary. nonprescription ( OTC ) and 3rd markets.

The research and Public Information Department is composed of the Research Services Sections. Information and Publications Section and the Public Information and Assistance Center ( PIAC ) . It conceptualizes procedures. consolidates and handles multi-media airing of statistical and analytical information and surveies related to the concern demands of members. It conducts research and provides information support to the enlargement and development of the Exchange trading operations and its markets. It besides maintains. develops and disseminates information through manual or electronic libraries and certification. The section produces regular publications – Weekly Report. Monthly Reports. and Fact Book – that provide market users with a reappraisal of the market’s public presentation along with historical and current informations on stock trading activities and listed companies. The Department besides acts as the affair of the Exchange through the sharing of informations and information with foreign persons. organisations and establishments.

Under the Research and Public Information Department is PIAC which implement the Exchange’s continual public aid plan by covering information publicity and facilitation along with ailments mediation in the physical centre at the chief offices of the PSE. It besides manages the operation of the PSE Souvenir Shop.

The Corporate Communications Department manages all signifiers of media and public relation through imperativeness releases. information and educational runs. It is in charge of pull offing and developing concern promotional and selling exposure demands of the PSE including the production and airing of corporate internal bulletin and other signifiers of information stuffs.

The PSE Training Institute is responsible for the development of programs/curricula along with supplying talks. preparations and seminars about securities market participants. Aside from in-house seminars. it conducts route shows to investors in the states. The Institute besides provides logistics support to all training-related activities of the sections in the PSE. In the hereafter. the Institute plans to carry on activities such as the Certified Securities Representative ( CSR ) seminars and the proficient and cardinal analysis seminars in the coordination with other intuitions.

Five volumes of the PSE Rule Book

Corporate RulesMembership RulesListing and Disclosure RulesTrading and Settlement RulesConformity and Surveillance Rules.

Philippine Stock Exchange Listed Companies

The Philippine Stock Exchange listed companies as of 2012 effectual last 17th of January. 2012 was composed of 30 companies and they belong to the listed companies of the Philippine Stock Exchange Index ( PSEi ) ;

Alliance Global Group. Inc. ( PSE: AGI )Ayala Corporation ( PSE: AC )Ayala Land ( PSE: ALI )Aboitiz Power Corporation ( PSE: AP )Bank of the Philippine Islands ( PSE: BPI )Banco de Oro Unibank. Inc. ( PSE: BDO )Belle Corporation ( PSE: BEL )Cebu Air ( PSE: CEB )DMCI Holdings Inc ( PSE: DMC )Energy Development Corporation ( PSE: EDC )First Gen Corporation ( PSE: FGEN )Globe Telecom Inc ( PSE: GLO )International Container Terminal Services Inc ( PSE: ICT )JG Summit Holdings ( PSE: JGS )

Jollibee Foods Corporation ( PSE: JFC )Manila Electric Company ( PSE: MER )Manila Water Company ( PSE: MWC )Megaworld Corporation ( PSE: Million )Metro Pacific Investments Corporation ( PSE: MPI )Metropolitan Bank and Trust Company ( PSE: MBT )Philex Mining Corporation ( PSE: Post exchange )Philippine Long Distance Telephone Company ( PSE: TEL )Robert robinsons Land Corporation ( PSE: RLC )San Miguel Corporation “A” ( PSE: SMC )Semirara Mining Corporation ( PSE: SCC )SM Development Corporation ( PSE: SMDC )SM Investments Corporation ( PSE: Samarium )SM Prime Holdings ( PSE: SMPH )Universal Robina Corporation ( PSE: URC )

Former companies listed of the PHISIX/PSEi have enlisted:

China Banking Corporation ( PSE: CHIB ]Digital Telecommunications Philippines ( PSE: DGTL )Ginebra San Miguel ( PSE: GSMI )GMA Network ( PSE: GMA7 )Holcim Philippines ( PSE: HLCM )Attics Corporation ( PSE: Ion )Metro Pacific Corporation ( PSE: MPC )

Music Semiconductors Corporation ( PSE: MUSX )Petron Corporation ( PSE: PCOR )Philippine National Bank ( PSE: PNB )Pilipino Telephone Corporation ( PSE: PLTL )Philippine Stock Exchange ( PSE: PSE )Rizal Commercial Banking Corporation ( PSE: RCB ) )San Miguel Corporation ( PSE: SMC and SMCB )Union Bank of the Philippines ( PSE: UBP )Vista Land and Lifescapes. Inc. ( PSE: VLL )

The PSE has eight component indices:PSE All Shares Index ( ALL )PSE Composite Index ( PSEi )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 )

IV. Analysis

The Philippine Stock Exchange with its primary function of guaranting free and crystalline stock market purchasing and merchandising plays a critical function in the trading activity of the Philippine economic system towards states in trade and minutess since its birth up to show. It plays a critical function in funding of productive endeavor that use the financess for growing enlargement of new occupations for the benefit of all sectors and citizens of the Philippines as so would be reciprocated by the benefits that multitudes and labours would widen in return to the PSE in bring forthing net income and income. and is hence indispensable to the growing of the Filipino economic system.

At present. non all citizens are informed about the being and the important function that the PSE plays in our economic system. We are frequently misled by our readings that the Philippines is under the colonisation and power of some states hence debts would non save our economic system. yet. we are incorrect. Apparently. debts ensures a relationship or bond that one state has together with other trading participants in order to hold a uninterrupted flow of imports and exports because it can ne’er be easy for a state to stand on its ain without take parting in trade and geting an sum of debt. In fact. it is helpful in the sense that citizens would profit from those. But furthermore. the Philippine Stock Exchange must be given frontages or must be projected in the heads of citizen for the ground that cognizing its activities if non all is indispensable in understanding the ups and down of the Filipino economic system.

The Philippine Stock Exchange does non simply focuses on the short term activity and is non isolated in footings of advancement and executing of dealing because it chiefly is the centre of development non merely in the Philippines but in Asia and one of import trade participant of the World. It is non selfish when it comes to coevals of income and net income and the said participants because it is good distributed. The planning and the organisation it has since so up to show is a solid foundation of the advancement and development that it acquired late this twelvemonth that lifts the life of every Filipino.

In line with the ends and the functions it has in the economic system. we could picture the encouragement and chances it offers to the general who are willing to take part even non in the wider range of trade yet merely in the most common purchasing and merchandising minutess. It extends the benefits non merely to those rich and affluent business communities but the full multitudes and is concerned chiefly on the public assistance of the economic system and trade.

The success of the Filipino Stock Market and advancement is assorted seen in our present economic system. the presence of commercial edifices. Bankss. investing bureaus and different fiscal establishments which compose the activity of PSE as participants. Greater Numberss of chances are now offered from the concern giants of the economic system and the universe towards the little business communities of the economic system. From the immense and tallest edifices down to a little “tiyangge” . there is the consequence or touch of the activity of trade managed by the PSE organisations.

Therefore. the addition or the rise of tendency in the Philippine Stock Exchange consequences to a better economic system of the Philippines do some points that it is the nucleus of development and the facade to which where and when the Philippines must exercise more attempt and give its attending towards holding an increasing economic system and coevals of income and net income. the volume of its success will be felt by every single hence. take parting in trade even in the simplest purchasing and selling dealing is a immense aid for us to be traveling.


Through the rating of the Filipino Stock Market. one thing and word would merely be critical for its long-term being and positive consequence that we should hold and execute. its engagement – in footings of trade. in the simplest signifier of purchasing and selling. engagement in going up-to-date with respects to information and information with the Philippine Stock Exchange. and engagement towards consciousness.

The advancement that will be felt in the Philippine Stock Exchange is a premier mover for our economic system wherein we had gathered that in every investing and trade that is being conducted and participated – the more participants ( chiefly those executing good in footings of net income coevals ) the more it is possible for a fast moving trade and a positive consequence and consequence to the economic system of this state.

We would profess to how important the PSE in protecting the involvement of the puting populace and in developing and keeping an efficient. carnival. orderly and crystalline market. Every citizen is a participant of trade and chances for chances and benefits of the Philippine Stock Exchange. hence. we must be able to execute our functions to our economic system in footings of proper consciousness on how should we put our money that we must believe and value as to how and in what manner will it assist beef up our economic system. even merely thought of the community where we are. is one aid and part.

We must non be frightened of puting our money in fiscal establishments because the benefits and the chances that every citizen will hold and is now holding is one piece of that your money that was invested. Proper orientations must be conducted and given to interested business communities so that they could expeditiously find the factors on how they should run a concern. how to get down. when and where and even what other activities to take part because it will certainly lend to the present increasing Filipino economic system.

We believe that the proper organisation. direction and public presentation of maps of the Philippine Stock Exchange would be the greatest manner and easiness for this unstable economic system of our state and would lend to a solution so that every citizens will be of great heads in footings of puting some sums of their money. in get downing their ain concern and in understanding the flow and rhythm of the economic system.


1. hypertext transfer protocol: //www. gmanetwork. com2. hypertext transfer protocol: //investing. businessweek. com3. hypertext transfer protocol: //en. wikipedia. org4. hypertext transfer protocol: //fglinc. tripod. com

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