Philippine Stock Exchange Presentation

Philippine Stock Exchange from Kristille DeLas Alas

Philippine Stock ExchangePresentation Transcript

• 1. Basic
• 2. The Philippine Stock Exchange, Inc. (‘PSE’ or EXCHANGE)
• 3. ∞ Overview The Philippine Stock Exchange, Inc. (Introduction) ∞ Mission and Vision ∞ Trading Mechanism ∞ Investing Procedures ∞ Stocks and Bonds ∞ Classes of Stocks
• 4. O The Philippine Stock Exchange, Inc. is a private organization that provides and ensures a fair, efficient, transparent and orderly market for the buying and selling of securities. O PSE traces its root from the country’s two former bourses: The Manila Stock Exchange (MSE) and the Makati Stock Exchange (MkSE).
• 5. It was founded in March 1927. Regarded as the first stock exchange in the Philippines and one of the oldest in Asia. It was established in May 1963. Considered as the second bourse to operate in the country.
• 6. PHILIPPINE STOCK MANILA STOCK MAKATI EXCHANGE While trading the same listed issues, MSE and MkSE remained separate entities for almost 30 years. December 23, 1992 marked a milestone for the Philippine capital market when the MSE and MkSE were unified to become the Philippine Stock Exchange. The idea to unite the two exchanges and have it managed by a professional group became a compelling vision of the government headed by President Fidel V. Ramos. The idea was geared towards the development of a more efficient capital market. Established in May 1927 Founded in March 1963
• 7. ust 8 g n Au y, W. o 7 hed am el lis 92 hn J. 1 estabssmen, n ackay, Jo s M E wa usine MS e b n W. field and fiv le, Gordo Wake by Litt . nk W ic a Er ll, Fr t e Russ . Ellio W.P.G e or th ed on o. 83 enact tN 936 wealth Ac936 was ecurities 1 mon Act of 1 ted the S (SEC) in that Com rities a n t cre mmissio agency Secu ber 26. I Co or an rest t Octo xchange e need f c inte arke d E e to th bli al stock m an rd pu e loc ns a o resp d safegu t by th woul ght abou brou in 1936 boom  ry ry Histo Histo 
• 8. tions The a oper ation. 940 suspended Occup e 1 SE nese ed by th on a M i T he e Jap bolish th miss uring s also a tive Com 5 d C wa e Execu ed in 194 SE ippin reactivat Phil ter s nd la ation a oper g adin 46 resumed tr 1 9 SE o B. he M ld T geni erme ardo by H , Edu d 1963 s organizeaberman uel E wa r nard G t and Mig MS e es, B risteo La Rey A 7 igas, n May 2 Or t pos o Cam   ry ry Histo Histo 
• 9. n s on o 65 erati p 19 ed o s t ar t 6 E MkS ber 1 ovem N arate sep d 9 ente oil 196 SE implem g and n he M for mini T s . was dice in e, Inc ing g chan follow x 2 ck E by the 99 ictor Sto 1 e ,V ppin n July 14 yuito Jr. Phili ed o rt Co , Juan B. t The e a rpor tors: Rob C. Lim inco ora irata do r corp ek, Edua sar E.A. V in y Hip o and Ce Sa ncics Fra   ry ry Histo Histo 
• 10. E MkS tion d E an eclara 3, MS oint d 92 19 cember 2 ed a j country’s n De and issu n of the hilippine te O rged unificatio er the P onsolida of fo the rses und Inc. to c lopment on , u o bo xchange ten deve tw c k E an d has t Sto tics arke is log apital m o the c nse t e its lic e on E e PS c hang 4 d t he 99 ed th es ex t le 1 nc el gran curiti a SEC a se sly c T he t e as neo u kSE ta t era imul and M p s arke o t m h 4. I he MSE -one rc Ma price of t e ens e e on e lic 25, th hiev arch as ac On M nge w a exch   ry ry Histo Histo 
• 11. fullh e 37t n as th ratio 95 as acceptedhe Fede Valeurs 19 E w t er of urses de tock b PS S The ed mem es Bo n of s the d o g pled ationale Federati own a l n n Inter rnationa V), now k anges, on te h B or In nges (FI n of Exc a io Exch Federat d Worl er 16 b d g an e Octo n anki ect th the B refl 96 ntroduced ndex to All 19 E i S ces I t and the isted i P l The Serv nmen s all cial viro e n Fina ial en clud n c hat i finan s Index t hare nies S a omp c  ry ry Histo Histo 
• 12. was E e PS the 999 mber 15, thship in mbering 1 r ove membe onal Nu and i On N rred f Nat ork, USA ency for e conf ciation o ew Y g o N ing A Ass cies in umber Agen me the N s beca hilippine the P e ed th revis ed 2006 ry 2, the PSiEn of list ompanies nua icat o rizing c f f o On Ja ry classi atego t urce c s indu anies by major so s p com ing to it d ccor e. a u even r  ry ry Histo Histo 
• 13. O brings together companies which aim to raise capital through the issue of new securities O plays a vital role in the financing of productive enterprises that use the funds for growth and expansion of new jobs O facilitates the selling and buying of the issued stocks and warrants O provides suitable market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities
• 14. O It provides and ensures a fair, efficient, transparent and orderly market for the buying and selling of securities for investors and stakeholders O It addresses public demand for speedy access to information on the securities market O It offers transparency of listed companies and ensures full, fair, timely and accurate disclosure of material information from all listed companies
• 15. O It provides comprehensive market data, stock quotations, dividend declarations, trading activities, and other pertinent information on the PSE, trading participants, listed companies and other institutions O It is a critical factor in improving settlement efficiency, increasing market liquidity and development of derivative instruments
• 16. Other Board Members • • • • • • • • • • • • • • • • Cornelio Peralta Anabelle Chua Alejandro Yu Amor Iliscupidez Eusebio Tanco Ph.D. Dakila Fonacier Edgardo Lacson Jose Pardo Ma. Vivian Yuchengco Jinky Alora Rachelle Blanch Roel Refran Susana Serad Val Suarez Esq. Marietta Tan Enrico Trinidad Mr. Hans Brinker Makasiar Sicat Chief Executive Officer President and Independent Director The Philippine Stock Exchange, Inc. B O A R D O F D I R E C T O R S
• 17. The PSE is committed to:  Offer products and services responsive to the needs of investors and other stockholders.  Provide a facility for fair, accurate, complete and timely information about listed companies, while extending market education and awareness programs to investors.  Be a prepared venue for raising capital.  Practice and promote good governance within the Exchange and among listed companies and trading participants.  Operate efficiently to optimize shareholder value.  Adopt world-class systems and global best practices for an efficient, fair and orderly market.  Develop a highly motivated and professional workforce committed to serve and excel.
• 18. A premiere exchange with worldclass standards for trading securities and raising capital that serves as a strong engine for a robust company.
• 19.  Professionalism in delivering quality service and in meeting the highest standards of excellence.  Integrity, transparency and accountability in implementing business programs and enforcing decisions.  Teamwork in working towards a common a favorable goal for the market.  Mutual respect in relating with fellow employees.  Inner strength in prioritizing the common good of the market instead of individual interest.  Corporate responsibility in promoting market growth hand in hand with community welfare.
• 20. 1. Choose a stockbroker. The PSE has a complete list of information about all its trading participants who are authorized and qualified to trade securities for you. This list is also available on the PSE's website and the telephone directory's Government and Business listings yellow pages under the category of stock and bond brokers. Aside from representing you in the stock market, a stockbroker can also offer you services such as access to market reports/studies, on-time delivery of important documents, and advise on your investments. It is then important that you trust your stockbroker and that you are satisfied with its services.
• 21. 2. You shall be required to open an account and fill out a Customer Account Information Form and to submit identification papers for verification. The stockbroker will then assign a trader or agent to assist you in either buying or selling any listed security. There are also stockbrokers who have an online trading facility that allows you to post orders by yourself, but sufficient understanding of how the stock market works is key. If you choose to be assisted by a trader or agent, you can discuss with him/her what stocks you want to buy or sell.
• 22. 3. Give the order to your trader, and then ask for the confirmation receipt. Your buy or sell orders are relayed to the stockbroker's dealer for execution. In an automated system as in PSE, the order is keyed in through a trading terminal and automatically matched. Confirmation of done trades - via phone, email or online - is made as soon as possible and subsequently, an official confirmation or invoice should be delivered to you.
• 23. 4. Pay before settlement date. The delivery or payment should be made before the settlement date of T+3. For traditional stockbrokers, settlement of transactions is usually done after three (3) working days from the transaction date. This means that for transactions done on Monday, as an illustration, payment should be received by Thursday. Meanwhile for online stockbrokers, settlement of all transactions is done on the transaction date. Settlement of accounts is performed by the clearing house.
• 24. 5. You shall receive from your broker either the proceeds of sale of your stocks (after 3 business days) or proofs of ownership of stocks you bought (confirmation receipt and invoice). If you wish to have a physical certificate of the stocks you bought, you can give instructions to your broker and pay the required upliftment fee.
• 25. The Philippine Stock Exchange Composite Index (PSEi)
• 26. http://www.pse.com.ph Top Gainers 17, 2014 As of January
• 27. http://www.pse.com.ph Top Losers As of January 17, 2014
• 28. http://www.pse.com.ph Stocks As of January 17, 2014
• 29. O Stocks are evidence of ownership in a company and a claim against a company’s assets and earnings. O It is the legal capital of the entity divided into shares. O Businesses obtain long term external financial capital either by obtaining equity funds or by borrowing. Equity capital may be obtained by finding new partners with financial capital to invest or through the public markets by issuing shares.
• 30. O Stockbroker – someone who deals in stocks O O O O O and shares Stock Certificate – document showing stockholders ownership in the company Stock Dividend – pro rate distribution of additional shares of a corporation’s own stock to its stockholders Stockholder – an individual or business that owns shares in a corporation Stockholder’s Equity – ownership interest of stockholders in a corporation Stock Market – a stock exchange; the buying and selling of stocks and shares
• 31. O Common stock represents ownership shares in a corporation. Common stockholders have voting and dividend rights. O They also have a claim on all business profits that remain after the holders of all other classes of debt and equity securities have received their coupon payments or returns. O In the event of bankruptcy, they are paid after bondholders and preferred stockholders. There is, however, a greater chance of capital appreciation by owning common stock.
• 32. O Preferred stock is a class of capital stock that has preference to the firm’s earnings and assets over common stock. ELEMENTS OF PREFERRED STOCK: 1. 2. 3. Does not represent an ownership claim. No voting rights unless dividends are missed. Par value is determined through a fixed annual dividend.
• 33. 4. Dividends: • Annual dividends are stated either as pro amount or a percentage per value • Received only if declared by the firm’s Board • Are paid out after tax earnings and each flow • Are taxable when received by shareholder
• 34. O A bond is a written promise by a company, government, or other institution to pay the face amount at the maturity date. O It represents borrowing lending agreements. Bond holders have the legal status as creditors, not owners, of the firm. O They have priority claims on the firm’s cash flows and assets. This means that they must receive their interest payments before the owners receives their dividends
• 35. O Bond Discount – the amount below face O O O O O value at which a bond is issued Bond Premium – the amount in excess of face value at which a bond is issued Bond Dividend – a dividend paid in the issuing company’s own bonds Bond Indenture – agreement between a bond issue and holder covering the terms of issue Bond Rating – quality ratings of corporate and municipal bond issues Bond Redemption – a transaction in which bonds are repurchased or retired by the issues
• 36. O Bond Valuation – the process followed by an O O O O investor on determining what to pay for a bond Par Value (Face Value) – the amount which will be paid by the debtor or issuer upon maturity Maturity – the length of time that has to expire for face value of the bond to be paid by the issuer. The periods can range from 45 days Treasury-bills to 25-year T-bonds Bearer – bonus may be paid to the bearer or holder of the bond Mortgage bonds or debentures – bonds which have as security for its repayment some assets (usually real estate)
• 37. O Bond ratings assess both the collateral underlying the bonds as well as the ability of the issuer to make timely payments of internets and principal. O The rating can range from D – highly speculation to triple A (AAA) – fast quality, least credit risk.
• 38. O Government securities are unconditional obligations of the Republic of the Philippines. It is backed by the full taxing power of the national government. O The government issues two kinds of government securities: 1. Treasury Bills (T-bills) 2. Treasury Bonds (T-bonds)
• 39. O Treasury bills are government securities which mature in less than a year. T-bills can be: 1. 91-day bills 2. 182-day bills 3. 364-day bills
• 40. O The government can finance its project (fiscal deficits) by: 1. Borrowing from Bangko Sentral 2. Borrowing from the domestic money market 3. Borrowing from abroad
• 41. The Philippine Stock Exchange Group 5 DE LAS ALAS, KRISTILLE PARADERO, REVIEL RAMOS, ALDRIN DELA END VEGA, THE NIKKO AFURONG, KARLO SIANQUITA, ROBBIE ALVAREZ, AEFRILL ???, DANISSA
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