PSE Composite Index – Wikipedia

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Stock market index located in Philippines

The PSE Composite Index, commonly known previously as the PHISIX and currently as the PSEi, is a stock market index of the Philippine Stock Exchange consisting of 30 companies.[1]

As the PSE’s only broad-base index, it is frequently seen as an indicator of the general state of the Philippine business climate,[2] although its reliability as an indicator of the state of the broader Philippine economy has been put into question.[3]

The stock exchange regularly revises the list, at least twice a year. The PSE Composite Index is always composed of 30 stocks.

Requirements[edit]

The stock exchange maintains the following requirements for a stock to be included in the PSEi:[4]

  • Minimum free float level of 20%.
    • This was increased from 12% before 2018.
  • A company must also meet the liquidity and capitalization criteria.

Formula[edit]

The exchange uses the following formula to calculate for the index:

PSE Indext=∑i=1n(Pi×Si×Fi) b×PSE Indext−1{displaystyle {mathsf {PSE Index_{t}={textstyle sum _{i=1}^{n}(P_{i}times S_{i}times F_{i})displaystyle over b}times PSE Index_{t-1}}}}

[5]

Where:

n = Total number of component companies (30)

Pi{displaystyle {mathsf {P_{i}}}}

= Closing price of company i at day t

Si{displaystyle {mathsf {S_{i}}}}

= Available shares of company i at day t

Fi{displaystyle {mathsf {F_{i}}}}

= Company free float level (0 to 1), where 1 means 100% free float.

b = Free float-adjusted market capitalization base

Annual returns[edit]

The following table shows the annual development of the PSE Composite Index since 1980.[6]

Year Closing level Change in index
in points 		Change in index
in %
1980 256.78
1981 183.91 −72.87 −28.38
1982 170.36 −13.55 −7.37
1983 167.49 −2.87 −1.68
1984 100.29 −67.20 −40.12
1985 131.19 30.90 30.81
1986 424.81 293.62 223.81
1987 813.17 388.36 91.42
1988 841.65 28.48 3.50
1989 1,104.57 262.92 31.24
1990 651.78 −452.79 −40.99
1991 1,151.87 500.09 76.73
1992 1,256.22 104.35 9.06
1993 3,196.08 1,939.86 154.42
1994 2,785.81 −410.27 −12.84
1995 2,594.18 −191.63 −6.88
1996 3,170.56 576.38 22.22
1997 1,869.23 −1,301.33 −41.04
1998 1,968.78 99.55 5.33
1999 2,142.97 174.19 8.85
2000 1,494.50 −648.47 −30.26
2001 1,168.08 −326.42 −21.84
2002 1,018.41 −149.67 −12.81
2003 1,442.37 423.96 41.63
2004 1,822.83 380.46 26.38
2005 2,096.04 273.21 14.99
2006 2,982.54 886.50 42.29
2007 3,621.60 639.06 21.43
2008 1,872.85 −1,748.75 −48.29
2009 3,052.68 1,179.83 63.00
2010 4,201.14 1,148.46 37.62
2011 4,371.96 170.82 4.07
2012 5,812.73 1,440.77 32.95
2013 5,889.83 77.10 1.33
2014 7,230.57 1,340.74 22.76
2015 6,952.08 −278.49 −3.85
2016 6,840.64 −111.44 −1.60
2017 8,558.42 1,717.78 25.11
2018 7,466.02 −1,092.40 −12.76
2019 7,815.26 349.24 4.68
2020 7,139.71 −675.55 −8.64
2021 7,122.63 −17.08 −0.24

Current components[edit]

These are current as of February 2022:[7]

Previous components[edit]

Company Ticker symbol Times included Notes
ABS-CBN Corporation PSE: ABS Removed May 2008,[8] removed November 2009,[9] re-added May 2010,[10] removed September 2011[11]
Belle Corporation PSE: BEL Component since September 2001,[12] removed May 2008,[8] re-added September 2011,[11] removed August 2013[13]
Benpres Holdings Component since September 2001[12] Renamed into Lopez Holdings Corporation (PSE: LPZ)
Bloomberry Resorts Corporation PSE: BLOOM Removed February 2022[14]
C&P Homes CMP Component since September 2001[12] Now part of Vista Land (PSE: VLL)
Cebu Pacific PSE: CEB Added September 2011,[11] removed September 2012[15]
Chinabank PSE: CHIB Added May 2010[10]
Digital Telecommunications Philippines DGTL Component since September 2001[12] Bought by PLDT (PSE: TEL)
DMCI Holdings PSE: DMC Removed May 2008,[8] re-removed August 2021[16]
Emperador, Inc. PSE: EMP Added September 2015,[17] removed March 2017,[18] re-added August 2020,[19] re-removed August 2021,[16] re-added February 2022[14]
Empire East Land PSE: EEI Added April 2006[20]
Energy Development Corporation EDC Removed September 2017[21] Renamed into Lopez Holdings Corporation (PSE: LPZ)
Equitable PCI Bank EPCI Bought by Banco de Oro (PSE: BDO)
Fil-Estate Land Removed September 2001[12] Bought by Alliance Global (PSE: AGI)
Filinvest PSE: FDC Removed September 2001,[12] removed September 2011[11]
First Philippine Holdings Corporation PSE: FPH Removed September 2011[11]
GMA Network PSE: GMA7 Added May 2009[22]
Holcim Philippines PSE: HLCM Removed April 2006[20]
La Tondeña Distillers LTDI Component since September 2001[12] Bought by San Miguel Corporation (PSE: SMC); renamed as Ginebra San Miguel (PSE: GSMI)
Lepanto Mining PSE: LC and LCB Removed September 2011[11]
Manila Mining PSE: MA and MAB Added April 2006[20]
Music Corporation MUSX Added September 2001[12] Now Green Holdings, Inc. (PSE: GREEN)
Petron Corporation PSE: PCOR Removed May 2008,[8] re-added May 2009,[22] re-added September 2012,[15] removed February 2018[23]
Philex Mining PSE: PX Removed September 2015[17]
Philippine National Bank PSE: PNB Component since September 2001,[12] re-added May 2008[8]
Philippine Stock Exchange PSE: PSE Added November 2009[9]
Piltel PLTL Added September 2001,[12] removed April 2006[20] Bought by PLDT (PSE: TEL)
Rizal Commercial Banking Corporation PSE: RCBC Added May 2008,[8] removed November 2009[9]
Robinsons Retail Holdings PSE: RRHI Removed February 2022[14]
Semirara Mining and Power Corporation PSE: SCC Added September 2011,[11] removed August 2020[19]
SM Development Corporation PSE: SMDC Added September 2011,[11] removed March 2013[24]
Southeast Asia Cement Holdings CMT Added September 2001[12]
Unionbank PSE: UBP Added May 2008, re-added May 2009[22]
Union Cement Added September 2001[12] Bought by Phinma Corporation (PSE: PHN)
Vista Land PSE: VLL Added May 2008,[8] removed November 2009

Record values[edit]

Category All-Time Highs
Closing 9,041.20 Friday, January 26, 2018
Intraday 9,078.37 Monday, January 29, 2018

See also[edit]

References[edit]

  1. ^ “The Philippine Stock Exchange”. Retrieved September 17, 2014.
  2. ^ Balaba, Jeaneth Michelle L. (June 20–22, 2017). Does the Stock market Drive the Philippine Economy? (PDF). DLSU Research Congress 2017. Retrieved July 31, 2018.
  3. ^ Heydarian, Richard Javad (March 20, 2013). “Philippine Stocks Crash: Symptom of Growing Economic Imbalances”. HuffPost. Retrieved July 31, 2018.
  4. ^ Resane, Andrea Mei B. (February 13, 2018). “No change in PSE index; sectors undergo revamp”. BusinessWorld. Retrieved March 27, 2018.
  5. ^ “PSE Policy on Index Management” (PDF).{{cite web}}: CS1 maint: url-status (link)
  6. ^ Committee for Financial Technical Assistance in Asia: The Stock Markets in Asia, Institute of Global Financial Studies, Foundation for Advanced Information and Research, Tokio 1994
  7. ^ “PSEi revised, ACEN and CNVRG added”. Manila Bulletin. August 5, 2021. Retrieved August 19, 2021.
  8. ^ a b c d e f g “PSE to change composition of indices on May 26”. ABS-CBN News. April 28, 2008. Retrieved August 19, 2021.
  9. ^ a b c “PSE to join main index for the first time”. ABS-CBN News. October 22, 2009. Retrieved August 19, 2021.
  10. ^ a b “ABS-CBN back in PSE main index”. ABS-CBN News. May 5, 2010. Retrieved August 19, 2021.
  11. ^ a b c d e f g h Alcuaz, Coco (August 25, 2011). “San Miguel, Cebu Air, SMDC join index; darling stock Lepanto out”. ABS-CBN News. Retrieved August 19, 2021.
  12. ^ a b c d e f g h i j k l Mendez, Christina; Diaz, Conrado Jr. “PSE reconstitutes main index”. Philstar.com. Retrieved August 19, 2021.
  13. ^ Rivera, Danessa O. “LT Group, GT Capital replace Meralco, Belle Corp. in benchmark PSEi”. GMA News Online. Retrieved August 19, 2021.
  14. ^ a b c “PSEi to move sideways on rebalancing, oil prices”. BusinessWorld Online. February 6, 2022. Retrieved February 7, 2022.
  15. ^ a b Miraflor, Madelaine B. (August 24, 2012). “Petron replaces Cebu Air at stock index”. The Manila Times. Retrieved August 19, 2021.
  16. ^ a b “PSEi revised, ACEN and CNVRG added”. Manila Bulletin. August 5, 2021. Retrieved August 19, 2021.
  17. ^ a b “Emperador a blue chip under revised PSE index”. Philstar.com. Retrieved August 19, 2021.
  18. ^ “Emperador out, Puregold in when PSEi recomposes in mid-March”. BusinessMirror. February 22, 2017. Retrieved August 19, 2021.
  19. ^ a b “Emperador set to join 30-company PSE index”. Manila Standard. Retrieved August 19, 2021.
  20. ^ a b c d “Holcim, Piltel taken out of stock index”. The Manila Times. March 18, 2006. Retrieved August 19, 2021.
  21. ^ Dumlao Abadilla, Doris (September 26, 2017). “RRHI to join PSEi, replacing EDC”. INQUIRER.net. Retrieved August 19, 2021.
  22. ^ a b c Peña, Zinnia B. Dela. “PSE reconstitutes indices”. Philstar.com. Retrieved August 19, 2021.
  23. ^ Cabuag, V. G. (February 11, 2019). “Petron out, Bloomberry in at benchmark PSEi | VG Cabuag”. BusinessMirror. Retrieved August 19, 2021.
  24. ^ “New PSEi: Razon-led Bloomberry in, Sy-led SMDC out”. Rappler. February 28, 2013. Retrieved August 19, 2021.

External links[edit]