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Finance

Stock Market 101: PSE Index

The Philippine Stock Exchange (PSE) utilizes Index Series to measure and evaluate the overall performance of the stock market in the Philippines. These index series serve as tools for measurement and analysis.

PSE Index

1. The Philippine Stock Exchange Index (PSEI) is a stock market index that tracks the performance of the 30 largest and most actively traded companies listed on the Philippine Stock Exchange. The companies in the PSEI are selected by the PSE based on a number of factors, including market capitalization, liquidity, and financial performance.

2. The Philippine Stock Exchange (PSE) has six sector indices that track the performance of different industries in the Philippine stock market. These sectors are:

  • Financial: This sector includes companies that provide financial services, such as banks, insurance companies, and investment firms.
  • Industrial: This sector includes companies that manufacture products, such as food and beverage companies, consumer goods companies, and industrial products companies.
  • Holding Firms: This sector includes companies that own controlling stakes in other companies.
  • Property: This sector includes companies that develop, own, and manage real estate properties.
  • Services: This sector includes companies that provide services, such as telecommunications companies, transportation companies, and entertainment companies.
  • Mining & Oil: This sector includes companies that explore, extract, and refine minerals and petroleum.

3. The All Shares Index is a stock market index that tracks the performance of all the common stocks of companies listed on the Philippine Stock Exchange. It is a free-float market capitalization-weighted index, which means that the weight of each stock in the index is determined by its market capitalization and its free float.

Remember to conduct thorough research, seek professional advice if needed, and make informed investment decisions based on your financial goals and risk tolerance.

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