Philippine Stock Exchange
The Philippine Stock Exchange (PSE) is the primary stock exchange in the Philippines and is also considered as one of the main stock exchanges in Southeast Asia. The PSE was Asia's first stock exchange, formed in 1927, and is also the longest continually operating exchange. The Philippine Stock Exchange has two trading floors, one at its headquarters in Pasig City and the other in Makati City's Central Business District.
The Philippine Stock Exchange was established by merging two existing exchanges, the Makati Stock Exchange (MkSE), which was formed in 1963 and the Manila Stock Exchange (MSE), established in 1927. For nearly 30 years prior to the merger in 1992 both the MSE and the MkSE traded the same stock for the same companies. In 2001, the PSE made the transition from a non-profit, no-stock, member-governed organization into a revenue-earning corporation.
At the end of 2007, the Philippine Stock Exchange had a total of 244 listed companies, with a combined market capitalization of $103 billion. Listed companies and corporations include ABS-CBN Broadcasting Corporation, Far Eastern University, Banco de Oro Universal Bank, Globe Telecom and Centro Escolar University. Stocks that are listed on the PSE are classified into a total of six sectors: Industrial, Property, Financials, Holding Firms, Mining & Oil and Property. They are grouped according to the line of business that generates the major portion of their revenue.
The Financial sector includes companies that are engaged in finance, banking and investments. The Industrial sector incorporates companies that are active in energy, electricity, power & water, beverage & tobacco, food, construction, allied services and infrastructure, as well as diversified industrials. Holding Firms are diversified companies that are engaged in three or more businesses allocated to different industries, and don’t control any one revenue.
The Property sector is made up of companies that are occupied in property and land development. The Services sector incorporates companies that are involved with information technology, telecommunications, transportation services, media, education, hotel and leisure as well as diversified services. The Mining and Oil sector is made up of companies that are involved with mineral extraction and production and oil exploration.
Between 2002 and 2006 GDP increased by 5% which improved exports and agricultural output. The purchasing power of the country was $443.1 billion in 2006 and the official GDP exchange rate was $98.48 billion that same year. The GDP per capita was $5,000 and the GDP sector was made up of industry (32.1%), agriculture (14.3%) and services (53.7%).