Alo, Michelle D.

History of Philippine Stock Market

The speaker Mr. Japhet Tantiangco, a senior research analyst, discuss about the history of
Philippine stock market. In 1927, 5 American businessmen put up the Manila Stock Exchange, where its
headquarters is located in Binondo. 36 years later, anew group of five established the Makati Stock
Exchange. In the early 1990’s, Philippine had 2 operating exchanges. A weeks after Fidel Valdes Ramos
became president, PSE was founded. Manila and Makati Stock Market become part of it. Eduardo Lim is
the first chairman of PSE and Eduardo de los Angeles is the president. By 1994, they operate under the
principles of 2 floors, 1 price. In mid-2018, the exchange become a single trading located in BGC, Taguig.

Currently, PSE has 131 Trading Participants that offers traditional and online trading. As of 2019,
there are 30 online brokers. Today, there are 267 listed companies whose shares are listed and available
for trading. The Philippine Equity Market is represented by Philippine Stock Exchange Index. A fixed
basket of 30 listed company chosen in terms of free float level, daily value and market capitalization. SM
Investment Corporation has the biggest market capitalization. The market is divided in different sectors
such as banking and finance, mining and oil, property, industrial, services, and holdings. These sectors
are further classified into sub-sectors. Accord Capital Equities Corporation change its name to Philstock
Financial Inc. in 2015 and become one of the leading brokers in the country.

Alo, Michelle D.

The speaker starts with the discussion of the Stock Market Overview. Here he discuss what is stocks,
why we invest, and how do we earn in stock market. We earn in stock market through capital
appreciation and receiving a dividend.

The second discussion is about how to start investing. According to him, there are 3 requirement to start
an investment. The first one is the capital. For as low as 1000 pesos, we can start to open an account.
The second is a trading account under a broker. And the last one is the time to buy/sell and skill to
manage your investment. This last step is the most challenging. It is our skills and decisions who will
decide whether we can grow our investment. Inside that trading hours, the price of stocks is fluctuating
so it is important to monitor it to get the best opportunity to buy/sell stocks.

The third discussion is about how stock market works. In stock market, you are a direct investor. It’s
start with your capital wherein you will buy stocks in your broker- then PSE- and then the broker again
to sell your stocks . In mutual funds, you are an indirect investor. In mutual funds, you will assign a fund
manager, where is he is the one who will monitor the groups investments. Here it is the mutual funds
that you’re going to buy.

The last discussion is about investing strategies. There are two kinds of investing the Passive and Active
investing. When you are in passive you are called a long-term investors. The strategies in Passive
investing are Buy & hold strategy, it is where investor buy stocks and hold them for months or years.
Another one is cost-averaging strategy, it is where investor buy with fixed amount regularly. It requires
minimal time. Active Investors are also called short-term traders. One of the strategy is the Market
Timing Strategy. It is where traders buy/sell stocks multiple times in a day. They are called day traders.
On the other hand, there are traders who hold their stocks for weeks which is called swing traders.
Active Investing requires more skills and time. Traders try to earn as much as possible through price
action. Any brokers have their own set of resources that they offer to their client like reports and
investment guides.