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What Is the PSEi? A Beginner's Guide to the Philippine Stock Market

Short answer: the PSEi (Philippine Stock Exchange index) tracks the share prices of 30 of the largest and most actively traded companies on the Philippine Stock Exchange. When people say "the market went up today", they usually mean the PSEi rose. You can follow it in our Markets section.

What the PSEi tells you

The PSEi is a quick summary of how big Philippine companies are doing on the stock market — banks, property developers, conglomerates, telcos, utilities and food companies. Its companies are reviewed regularly, so the list changes over time.

How to start investing

  1. Build your emergency fund first, so you never have to sell stocks at a bad time to pay a bill.
  2. Open an account with a stockbroker that is a trading participant of the PSE and registered with the SEC. Many online brokers let you start with a small amount.
  3. Learn about board lots — the minimum number of shares per order, which depends on the share price.
  4. Understand the costs: brokers charge commissions, and there are exchange fees and taxes when you buy and sell. Small, frequent trades lose more to fees.

Simple approaches for beginners

  • Peso cost averaging: invest a fixed amount on a regular schedule, whether prices are up or down.
  • Diversify: spread your money across several companies and industries, or use index funds that track the PSEi.
  • Think long term: share prices can fall sharply in the short run. Money you need within a few years usually belongs in safer places.

Dividends

Some companies share profits with shareholders as dividends. For individual Philippine residents, cash dividends from Philippine companies are subject to a final tax, which is withheld before you receive them.

Know the risks

Stocks can lose value, and there is no guarantee of returns. Be wary of anyone promising fixed high returns or "sure win" stock tips — the SEC regularly warns against investment scams.

General information, not investment advice. Check with a licensed professional before investing.

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