PSE Composite Index

The PSE Composite Index, or the PSEi (since April 3, 2006, previously as PHISIX), is the Philippine main stock market index, consisting 30 of the largest companies traded in the Philippine Stock Exchange (PSE). This is in contrast to the broader PSE All Shares Index which is an index of all stocks traded in the PSE.

The base level of the PSEi was pegged at 1,022.045 points, according to the close of the index on February 28, 1990. The highest closing value was 9,058.62 on Monday, January 29, 2018. The highest intraday value was recorded at that same day at 9,078.37.

It is the PSE's primary benchmark equity index and is seen as an indicator of the general state of the Philippine business climate, although there is evidence the index may not be a reliable indicator of the state of the broader Philippine economy.

Methodology

Composition

The PSE revises the list of component stocks at least twice a year with regular rebalancing schedules every February and August, based on December-end and June-end information spanning latest 12 months of trading data, respectively. Component stocks should broadly satisfy the following requirements in order to qualify for the index:

• Listed in the main board of the PSE for at least 12 months during the review period
• Public float: At least 20% by the end of the review period, as indicated in the quarterly Public Ownership Report
• Market liquidity: Company must rank among the top 25% in terms of median daily trade per month in at least 9 out of the 12 months within the review period
• Market capitalization: Should be among the 30 largest companies based on full market capitalization, after passing the public float and liquidity eligibility requirements.

Calculation

The index uses a free-float adjusted market capitalization method (since 2006) and follows the formula below used by the PSE to calculate the index's value:

P S E I n d e x t = ∑ i = 1 n ( P i × S i × F i ) b × P S E I n d e x t − 1 {\displaystyle {\mathsf {PSE\ Index_{t}={\textstyle \sum _{i=1}^{n}(P_{i}\times S_{i}\times F_{i})\displaystyle \over \ b}\times PSE\ Index_{t-1}}}}

Where:

n = Total number of component companies (30)

P i {\displaystyle {\mathsf {P_{i}}}} = Closing price of company i at day t

S i {\displaystyle {\mathsf {S_{i}}}}= Available shares of company i at day t

F i {\displaystyle {\mathsf {F_{i}}}}= Company free float level (0 to 1), where 1 means 100% free float.

b = Free float-adjusted market capitalization base

Frequency

The index is calculated every 15 seconds and currently disseminated every minute whenever the Philippine Stock Exchange is open.

Current components

Record values

Annual returns

The following table shows the closing value of the PSEi at the end of each calendar year since 1980.

Component changes

See also

• PSE All Shares Index, index of almost all shares traded in the PSE

External links