Philippine Stock

Exchange
 History

a private organization that provides

and ensures a fair, efficient,
transparent and orderly market for the
buying and selling of securities.
PSE traces its root from the countrys
two former bourses: The Manila Stock
Exchange (MSE) and the Makati
Stock Exchange (MkSE).
 Manila Stock Exchange (MSE)
founded in March 1927; first stock
exchange in the Philippines and one
of the oldest in Asia

Makati Stock Exchange (MkSE)

established in May 1963; the second
bourse to operate in the country
 Function as a Regulator
The PSE is the watchdog of the stock
market. It closely regulates and monitors
all stock market transactions.
Companies : support a reliable
environment for new and existing equity
issuances
Stockbrokers : maintain and enhance as
needed the market regulation of trading
participants
 Function as a Company

a publicly listed company with a

stable shareholder base. It is
revenue-earning and managed
with the rule of good governance
and the highest corporate
standards.
 strives to make efficient use of the
companys resources and remains
steadfast in pursuing reforms and
initiatives that are geared towards
improving investor confidence and
enhancing shareholder value.

has lined up key programs for the

stock market and push the Exchange
How To Start Investing In the
Stock Market
 Price Appreciation

After you buy shares, you can increase

the market value of the shares in the
LONG RUN. This happens over the
long term with the development of the
business of the company purchased.
 Dividends.
- as part owner of the purchased
business, the companies gives a
part of their income to to their
'shareholder
 Trading cycle

Choose a stockbroker.
You shall be required to open an
account and fill-out a Reference
Card and to submit identification
papers for verification.
 Give the order to your
broker/trader, and then get the
acknowledgement receipt.
Pay before settlement date.
You shall receive from your
broker either the proceeds of sale
of your stocks or proofs of
 Contents
Getting started in stock investing
Philippine Stock Exchange Index
Definition of terms
basic fundamental analysis
basic technical analysis
Trading systems
Investment maxim
Do you know how
many Filipinos are
currently investing in
stocks?
 The correct answer is less than 1
million people 640,665 to be
exact. (2014)
This is from the Stock Market
Investor Profile report of the PSE,
data of which came from a survey
of 18 online brokerage firms in the
country.
 The figures are in stark contrast with that
of other Southeast Asian nations' stock
market. The number of investors in
Singapore has the highest proportion of its
population around 33% with investments
in the stock market. Japan and Australia
both have roughly 25% each; while Malaysia
has 18%; Hong Kong, 17%; and Korea, 10% of
their citizens invest in the stock market.
(Source: Vernon Go Director of Cash & Debt
Management CERTA)
 Why
invest in
the stock
market?
Financial markets generally go up
 Decoding the language game
Field: Code: Decoded:
Law Walking across a street Jaywalking
Code: outside of marked cross-
walks and not a corner,
and/or against a signal light.
And in such case where
there is vehicle traffic or
clear marking of a place to
cross, this is a traffic
misdemeanor subject to fine.

gay linggo Mega ynez veneracion! Napa Nakakainis! Napabili ako

billy joe ako ng nikki gil kaye ng NIKL kanina. Natalo
nina ricci alagao. Ayon. Luz lahat ng kinita ko sa MEG
Valdez lahat ng winnie cordero
ko kay megan young
Decoded: Nakakainis! Napabili
ako ng NIKL kanina
 Definition of terms
Bull/ Bullish is a common term used
to describe a stock, a pattern, or a
market in general, that is
characterized by upward movement.
A bullish market is a happy green,
market
Bear / Bearish - is the reverse of bull/
bullish market. It is characterized by
downward movement.
 Definition of Terms
Support is an area where price
is expected to stop declining after
a selloff. It is an area where
buyers are waiting to buy.
Resistance- is an area where it
becomes difficult for price to
continue moving up. It is an area
where selling is heavy
Bear vs Bull
 Fundamental Analysis vs.
Technical Analysis
Fundamental analysis gives us an idea
of what the price should be based on
company earnings, future prospects, etc. But
unless acted upon by the market participants,
all these data remain to be just perceptions of
price value. Technical analysis, on the other
hand, deals with the current and actual state
of price as expressed by market participants.
 Fundamental analysis in a
nutshell This things
1 share of chuckie worth Php 40!
Chuckie company
company is Php 30

Evaluation of
the company
Basics of Fundamental
Analysis
 Balance sheet for current ratio, liquidity
and solvency of the company
Income statement for companys
earnings
Cash flow statement most important
financial statement
A company with a good cash position is
betterly prepared to endure economic ups
and downs. This is why investors say
How would you know which one
is of the best value?
Price/Earnings ratio
Net income
Earnings per
share

Outstanding
Shares

Price of
stock

P/E Ratio
 Example: MRSGI (Metro Retail
Stores Group Inc.)
By using a growth rate of
11.2% similar to the 3-yr.
Net Income CAGR,
25% Margin Of Safetyand
a Discount Rate of 9% in
the P/E valuation model, we
can arrive at a Net Present
Value of Php 3.87/share.
At Php 3.57/share, we can
say based on the data that
the stock is currently
undervalued.
 Technical Analysis

In finance, technical analysis is

a security analysis methodology
for forecasting the direction of
prices through the study of past
market data, primarily price and
volume.
Technical Analysis Basics
Price
Trend
Cycle of a stock
Support and resistance
Price patterns
Technical indicators
Candles 101
Doji the doji is an indecisive
candle meaning, its neither
bullish nor bearish. It closed on
the same price where it opened.
It has no body thats why it has
no color
 Trend
the trend is your friend
uptrend
downtrend
sideways
 4 stages of price action
ACCUMULATION - The stock forms a long horizontal
base on the chart. A base is simply a period where the stock moves
mostly sideways instead of trending higher or lower.

MARKUP - The stock breaks out of the horizontal base and

begins advancing over a period of time.

DISTRIBUTION The stock starts to trend sideways in

Stage 3 and lose momentum to the upside.

MARKDOWN The stock breaks down below Stage 3 trading

range and continues to decline mostly
Support and Resistance (SAR)

1. Buy on support, Sell on

Resistance
2. When broken, resistance
becomes support and support
becomes resistance
Price patterns
Technical indicators
Moving averages (50 day
SMA)
 One thing to keep in mind is that
technical analysis can help you
identify entry and exit signals
 3 Basic Trading strategies

1. Buy and hold

2. Peso Cost averaging
3. Market timing (trading)
Buy and hold (and forget)
Step 1: Buy a good stock
- Stocks that are the giants of
todays industry. The companies
who will outlive you, your children
and your childrens children.
- Stocks who will become the future
giants
Step 2: Ignore all the information
about it
Requirements:
-Have a large amount of extra
capital
-Wants a lot of convenience
-One-time engagement with the
Buy and hold example
 Peso cost averaging

A time-tested personal wealth-

building strategy that has been
proven to work by investing a
fixed amount of money in
regular intervals over a period
of time
 Method 3: Market timing
Uses indicators and other to tools to
help predict where the stock market
will go

Requirements:
- Learn Technical analysis
- monitor the stock market at least
once a week
 The story of FNI (Global
Ferronickel Holdings Inc.)
From Peso to tres
 Investment maxim
The investment maxim really
should be: Buy when you have
the money to invest, then add
more when prices are low and
reduce some holdings when
prices are high. Since financial
markets generally go up, its best
to invest when you have the