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PSE Composite Index

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The PSE Composite Index, commonly known previously as the PHISIX and currently as the PSEi, is the main stock market index of the Philippine Stock Exchange consisting of 30 companies.[1]. The PSEi measures the relative changes in the free float-adjusted market capitalization of the 30 largest and most active common stocks listed at the PSE.

As a PSE's 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] There is an even broader based index named All Share Index which includes all the common stocks of companies listed at the Exchange.

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

Requirements for Inclusion[4]

The stock exchange maintains the following requirements for a stock to be included in the PSEi:[5]

  • Only companies with common stocks listed in the main board of the PSE for at least 12 months during the review period are eligible for inclusion in the PSEi and sector indices, subject to complying with the requirements for free float and liquidity.
  • Foreign companies whose shares are simultaneously listed at the PSE and in other exchanges overseas are not eligible for the PSEi but may be included in the sector indices.
  • Convertible preferred shares are excluded until converted.
  • Exchange Traded Funds or other forms of investment funds which prices are derived from underlying holdings of other listed issues at the PSE are not eligible for inclusion in the PSE indices.
  • Dollar Denominated Securities shall not be eligible for inclusion in the PSE indices.
  • Companies shall be considered ineligible for inclusion in the index due to conditions that may cause their stocks to be unavailable for trading for a significant period of time for the next six months from the scheduled review of the indices. Such conditions include, among others, the commencement of delisting proceedings against the company, or when it is suspended from being traded in the PSE.
  • Minimum free float level of 20%, this requirement is effective December 2022. Prior to this, the free float requirement for index inclusion is 15%.
  • A company must also meet the liquidity and capitalization criteria.
  • To be eligible for the PSEi, the stocks of the company must rank among the top 25% in terms of median daily trade per month in nine out of the twelve month period in review.

Formula

For any trading day, the index is computed by deriving the change in the index components’ current total free float-adjusted market capitalization from the base total free float-adjusted market capitalization, and multiplying this change with the previous day’s closing index level. The base total free float-adjusted market capitalization is the sum of all the products of the index stocks’ previous day’s last traded price and their current free float shares. Below is the formula for computing the index[4]:

Where:

n = Number of constituents of the index

= Last traded price of company i at day t

= Number of outstanding shares of company i at day t

= Free float factor of company i to be applied to each security, expressed as a number between zero to 1, where 1 represents 100% free float.

b = Base free float-adjusted market capitalization.

Annual returns

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

These are current as of February, 2022:[7]

Company Ticker symbol Also a component of the
Aboitiz Equity Ventures PSE: AEV PSE Holding Firms Index
Aboitiz Power Corporation PSE: AP PSE Industrial Index
AC Energy PSE: ACEN PSE Industrial Index
Alliance Global Group PSE: AGI PSE Holding Firms Index
Ayala Corporation PSE: AC PSE Holding Firms Index
Ayala Land PSE: ALI PSE Property Index
Bank of the Philippine Islands PSE: BPI PSE Financials Index
Banco de Oro PSE: BDO PSE Financials Index
Emperador, Inc. PSE: EMP PSE Industrial Index
Converge ICT PSE: CNVRG PSE Services Index
Globe Telecom PSE: GLO PSE Services Index
GT Capital PSE: GTCAP PSE Holding Firms Index
International Container Terminal Services PSE: ICT PSE Services Index
JG Summit Holdings PSE: JGS PSE Holding Firms Index
Jollibee Foods Corporation PSE: JFC PSE Industrial Index
LT Group PSE: LTG PSE Holding Firms Index
Megaworld Corporation PSE: MEG PSE Property Index
Meralco PSE: MER PSE Industrial Index
Metro Pacific Investments Corporation PSE: MPI PSE Holding Firms Index
Metrobank PSE: MBT PSE Financials Index
Monde Nissin PSE: MONDE PSE Industrial Index
PLDT PSE: TEL PSE Services Index
Puregold PSE: PGOLD PSE Services Index
Robinsons Land PSE: RLC PSE Property Index
San Miguel Corporation PSE: SMC PSE Holding Firms Index
Security Bank PSE: SECB PSE Financials Index
SM Investments Corporation PSE: SM PSE Holding Firms Index
SM Prime Holdings PSE: SMPH PSE Property Index
Universal Robina PSE: URC PSE Industrial Index
Wilcon PSE: WLCON PSE Services Index

Previous components

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

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

See also

References

  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. ^ a b "PSE Policy on Index Management" (PDF).
  5. ^ Resane, Andrea Mei B. (2018-02-13). "No change in PSE index; sectors undergo revamp". BusinessWorld. Retrieved 2018-03-27.
  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. 2021-08-05. Retrieved 2021-08-19.
  8. ^ a b c d e f g "PSE to change composition of indices on May 26". ABS-CBN News. 2008-04-28. Retrieved 2021-08-19.{{cite web}}: CS1 maint: url-status (link)
  9. ^ a b c "PSE to join main index for the first time". ABS-CBN News. 2009-10-22. Retrieved 2021-08-19.{{cite web}}: CS1 maint: url-status (link)
  10. ^ a b "ABS-CBN back in PSE main index". ABS-CBN News. 2010-05-05. Retrieved 2021-08-19.{{cite web}}: CS1 maint: url-status (link)
  11. ^ a b c d e f g h Alcuaz, Coco (2011-08-25). "San Miguel, Cebu Air, SMDC join index; darling stock Lepanto out". ABS-CBN News. Retrieved 2021-08-19.{{cite web}}: CS1 maint: url-status (link)
  12. ^ a b c d e f g h i j k l Jr, Christina Mendez,Conrado Diaz. "PSE reconstitutes main index". Philstar.com. Retrieved 2021-08-19.{{cite web}}: CS1 maint: multiple names: authors list (link)
  13. ^ News, By DANESSA O. RIVERA, GMA. "LT Group, GT Capital replace Meralco, Belle Corp. in benchmark PSEi". GMA News Online. Retrieved 2021-08-19. {{cite web}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
  14. ^ a b c "PSEi to move sideways on rebalancing, oil prices". BusinessWorld Online. 2022-02-06. Retrieved 2022-02-07.
  15. ^ a b MIRAFLOR, MADELAINE B. (2012-08-24). "Petron replaces Cebu Air at stock index". The Manila Times. Retrieved 2021-08-19.
  16. ^ a b "PSEi revised, ACEN and CNVRG added". Manila Bulletin. 2021-08-05. Retrieved 2021-08-19.
  17. ^ a b "Emperador a blue chip under revised PSE index". Philstar.com. Retrieved 2021-08-19.
  18. ^ BusinessMirror (2017-02-22). "Emperador out, Puregold in when PSEi recomposes in mid-March". BusinessMirror. Retrieved 2021-08-19. {{cite web}}: |last= has generic name (help)
  19. ^ a b "Emperador set to join 30-company PSE index". Manila Standard. Retrieved 2021-08-19.
  20. ^ a b c d "Holcim, Piltel taken out of stock index". The Manila Times. 2006-03-18. Retrieved 2021-08-19.{{cite web}}: CS1 maint: url-status (link)
  21. ^ Dumlao-Abadilla, Doris (2017-09-26). "RRHI to join PSEi, replacing EDC". INQUIRER.net. Retrieved 2021-08-19.
  22. ^ a b c Peña, Zinnia B. Dela. "PSE reconstitutes indices". Philstar.com. Retrieved 2021-08-19.
  23. ^ Cabuag, V. G. (2019-02-11). "Petron out, Bloomberry in at benchmark PSEi | VG Cabuag". BusinessMirror. Retrieved 2021-08-19.
  24. ^ "New PSEi: Razon-led Bloomberry in, Sy-led SMDC out". Rappler. 28 February 2013. Retrieved 2021-08-19.
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