The Philippine Stock Exchange (PSE) 

 Is the only stock exchange in the Philippines. It is one of the oldest stock exchanges in
Asia, having been in continuous operation since the establishment of the Manila Stock
Exchange in 1927.
 It currently maintains a trading floor at the PSE Tower in Bonifacio Global City, Taguig
City.
 The main index for PSE is the PSEi, which is composed of a fixed basket of thirty (30)
listed companies.

Philippine Stock Exchange Index (PSEi)

 The PSEi measures the relative changes in the free float-adjusted market capitalization of
the 30 largest and most active common stocks listed at the PSE.
 The selection of companies in the PSEi is based on a specific set of public float, liquidity
and market capitalization criteria. There are also six sector-based indices as well as a
broader all shares index.
 Trading in the PSE is a continuous session from 9:30AM to 3:30PM daily with a recess
from 12:00PM to 1:30PM.

INVESTING PROCEDURES

 Choose a stockbroker
 You shall be required to open an account and fill out a Customer Account
Information Form and to submit identification papers for verification.
 Give the order to your trader, and then ask for the confirmation receipt.
 Pay before settlement date.
 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).
The Trading Cycle

Note:  Settlement period of T+3 (trading day + 3 working days). This means that a seller should
be able to deliver the stock certificate, if any, to his broker and the buyer must have paid the cost
of transaction to his broker within 3 working days after the trade was done.
Settlement was done manually (27-day cycle). With scripless trading, wherein settlement is done
via the book-entry-system (thru Philippine Central Depository or PCD), transactions are settled
on the third day after trade date. Under this system, the investor has the option to hold on to his
certificate (uplift) or deposit (lodge) this certificate in PCD through his broker-participant
account.

PSE Trading Hours/ Market Phases

8:45 am National Anthem

9:00 am Pre-Open Auction Period

9:15 am Pre-Open No-Cancel Period

9:30 am Opening Period - Continuous Trading

12:00 nn Market Recess

1:30 pm Continuous Trading

3:15 pm Pre-Close Auction Period

3:18 pm Pre-Close No-Cancel Period

3:20 pm Closing Period - Run-off/Trading-at-Last

3:30 pm Market Close

Board Lot System

 Market Price (in Php) Tick Size Lot Size

0.0001 to 0.0099 0.0001 1,000,000

0.0100 to 0.0490 0.0010 100,000

0.0500 to 0.2490 0.0010 10,000

0.2500 to 0.4950 0.0050 10,000

0.5000 to 4.9900 0.0100 1,000

5.0000 to 9.9900 0.0100 100

10.0000 to 19.9800 0.0200 100

20.0000 to 49.9500 0.0500 100

50.0000 to 99.9500 0.0500 10

100.0000 to 199.9000 0.1000 10

200.0000 to 499.8000 0.2000 10

500.0000 to 999.5000 0.5000 10

1000.000 to 1999.000 1.0000 5

2000.000 to 4998.000 2.0000 5

5000.000 and UP 5.0000 5

Note: The Board Lot Table determines the minimum number of shares an investor can buy or sell at a specific price
range. Therefore, the minimum amount of initial investment varies and will depend on the market price of the stock as
well as its corresponding board lot. Prices of stocks move through a scale of minimum price fluctuations.

Examples
Buying Transaction:
Mr. X wishes to buy a stock whose market price is P10.00. Based on the Board Lot Table, the
number of shares he can buy at a regular transaction should be in multiples of 100 shares. In this
case, if Mr. X wants to buy 1,000 shares (which is a multiple of 100 shares) his required cash
outflow will be as follows:

Market price/share P 10.00

Number of shares to be bought   x 1,000

  P 10,000.00

Broker's Commission* (0.25% + 12% VAT)   + 28.00

SEC Fee (Transaction Value x 0.005%)   + 0.50

PSE Transaction Fee (Transaction Value x 0.005%)   + 0.56

SCCP Fee (Transaction Value x 0.01%)   + 1.00

Total Cash Outlay P 10,030.06

Selling Transaction:
Ms. Y wishes to sell a stock that is trading at P10.00. Based on the Board Lot Table, the number
of shares she can sell at a regular transaction should be in multiples of 100 shares. In this case, if
Ms. Y wants to sell 1,000 shares (which is a multiple of 100 shares), her cash inflow will be as
follows:
 Market price/share P 10.00

Number of shares to be sold   x 1,000

  P 10,000.00

Broker's Commission* (0.25% + 12% VAT)   - 28.00

Stock Transaction Tax** (Transaction Value x 0.6%)   - 60.00

SEC Fee (Transaction Value x 0.005%)   - 0.50

PSE Transaction Fee (Transaction Value x 0.005%)   - 0.56

SCCP Fee (Transaction Value x 0.01%)   - 1.00

Net Cash Receivable P 9,909.94

TRADING/ TRANSACTION FEES AND TAXES

Brokerage Commission

 A stockbroker is compensated for his services in executing orders on the Exchange

through commission charges, which are paid by both the buyer and seller to their respective
brokers.
 For trade transactions covering equity and equity-related products, the maximum
commission rate is 1.5% of the total transaction cost plus 12% value added tax (VAT).
The minimum commission rates depend on the amount of the transaction.

Upliftment/Withdrawal Fee

 If a buying client opts for a stock certificate to be issued in his name, he must make the
request through his broker who will then issue the upliftment request through the PDTC
system.
 PDTC will then submit the request to the transfer agent for the issuance of the certificate.
PDTC will charge the broker an upliftment/withdrawal fee of Php50 per certificate
issuance request.
 Cancellation Fee

 If a selling client has physical certificates, he must have the certificates converted into
book-entry form in the PDTC system by requesting, through his broker, for a direct
transfer (DT) with the transfer agent, which costs Php100 (plus 12% VAT) per
certificate for the transfer of ownership of shares to PDTC Nominee Corporation
(PCNC).
 In addition to the DT fee, a client must pay cancellation fee of Php20 (plus 12% VAT)
to the transfer agent for cancellation of the certificates to be lodged in PDTC (for
lodgment of shares). This is applicable only to listed equities.

Stock Transaction Tax

 Sales of equities listed and traded on the Exchange are subject to a stock transaction tax
of ½ of 1% (50 basis points) of the value of transaction charged to the seller, in lieu of the
capital gains tax. The sale, barter or exchange of shares of stock listed and traded at the PSE
are exempt from documentary stamp tax.

Withholding Tax

 Under the National Internal Revenue Code of 1997, and except in cases where tax treaties
are in force, dividends received from domestic corporations are subject to a withholding
tax of 10% if the recipient is a citizen or resident alien, 20% if the recipient is a non-
resident individual engaged in trade or business in the Philippines, 25% if the recipient
is a non-resident individual not engaged in trade or business in the Philippines, and
 30% if the recipient is a non-resident foreign corporation.
 Dividends received by domestic and resident foreign corporations are not subject to
tax.
 The rate of income tax withheld on dividends paid to a non-resident foreign
corporation may be reduced to 15% if the country in which the non-resident foreign
corporation is domiciled
 (a) imposes no taxes on foreign-source dividends or
 (b) Allows a credit against the tax due from the foreign non-resident corporation for
taxes deemed to have been paid in the Philippines equivalent to 15% of such dividends.
Type of Fee Rate

Brokerage Commission (Min.)1

Transaction Value Minimum Commission
 Type of Fee Rate

Php100 million and below 0.25%

Above Php100 million up to 0.15% but not less than

Php500 million Php250,000

Above Php500 million up to 0.125% but not less than

Php1 billion Php750,000

Above Php1 billion up to 0.1% but not less than

Php5 billion Php1.25 million

Above Php5 billion up to 0.075% but not less than

Php10 billion Php5 million

Above Php10 billion 0.05% but not less than

Php7.5 million

Upliftment/ Withdrawal Fee Php50 per certificate

Cancellation Fee Php20 + 12% VAT

Stock Transaction tax 0.5% of the value of transaction

Withholding Tax
Filipino citizen or resident alien: 10% of dividends received

Non-resident individual engaged in trade or business in the

Philippines: 20% of dividends received

Non-resident individual not engaged in trade or business in

the Philippines: 25% of dividends received

Non-resident foreign corporation: 30% of dividends

received

Why invest in the stock market?

 Participation in the ownership of a company - An individual who invests in the stock

market automatically becomes a stockholder of a particular listed company regardless of
how many shares of stocks he/she holds. As a stockholder, an investor is entitled to the
 following benefits: 1) voting rights; 2) dividends to be declared by the company; and
3) share of the remaining assets of the company if it is to be liquidated.
 Liquidity of Funds - A stock market investor has an easier access to funds given that
he/she can always cash in or out his funds anytime, during trading hours, through his/her
stockbroker.
 Make money - An investor can generate more money either through the cash dividends
declared by the listed company or through the price appreciation of his/her shares over
time - that is - assuming he/she bought the shares at a low market price then selling it at a
higher price. An investor can also benefit from a listed company's stock dividend
declaration as the shares of stocks add up to their holdings at no purchasing cost and can
later be sold anytime he/she wishes.

What are the types of securities that I can buy in the stock market?

 Common Stocks - These are usually purchased for participation in the profits and control
of ownership and management of the company.
 Preferred Stocks - for one, receive dividends, to the extent agreed upon, before any
dividends are paid to the common stockholders.
 Warrants - normally issued on a detachable basis, allows its holders the right, but not the
obligation, to subscribe to new shares at a set price during a specified period of time. It is
usually provided free of charge and traded separately in the stock market.
 Philippine Deposit Receipts (PDRs) - is a security which grants the holder the right to
the delivery or sale of the underlying share and to certain other rights including additional
PDRs or adjustments to the terms or upon the occurrence of certain events in respect of
rights issues, capital organizations, offers and analogous events or the distribution of cash
in the event of a cash dividend on the shares.

Quick links to the top 30 public listed companies in the Philippines’ PSEi
To facilitate browsing in this list, here are links to go directly to the details of any of the
PSEi companies.

 Aboitiz Equity Ventures, Inc. – sector: Holding Firms

  Aboitiz Power Corp. – sector: Energy & Utilities
 Alliance Global Group, Inc. – sector: Holding Firms
 Ayala Corporation – sector: Holding Firms
 Ayala Land, Inc. – sector: Real Estate
 Bank of The Philippine Islands – sector: Finance
 BDO Unibank, Inc. – sector: Finance
 DMCI Holdings, Inc. – sector: Holding Firms
 First Gen Corporation – sector: Energy & Utilities
 Globe Telecom, Inc. – sector: Telecommunications
 GT Capital Holdings, Inc. – sector: Holding Firms
 International Container Terminal Services, Inc. – sector: Transportation &
Logistics
 JG Summit Holdings, Inc. – sector: Holding Firms
 Jollibee Foods Corporation – sector: Food & Beverages
 LT Group, Inc. – sector: Holding Firms
 Manila Electric Company – sector: Energy & Utilities
 Megaworld Corporation – sector: Real Estate
 Metro Pacific Investments Corporation – sector: Holding Firms
 Metropolitan Bank & Trust Company – sector: Finance
 Petron Corporation – sector: Energy & Utilities
 Philippine Long Distance Telephone Company – sector: Telecommunications
 Puregold Price Club, Inc. – sector: Commerce
 Robinsons Land Corporation – sector: Real Estate
 Robinsons Retail Holdings, Inc. – sector: Commerce
 San Miguel Corporation – sector: Food & Beverages
 Security Bank Corporation – sector: Finance
 SM Investments Corporation – sector: Holding Firms
 SM Prime Holdings, Inc. – sector: Real Estate
 Semirara Mining And Power Corporation – sector: Mining / Energy & Utilities
 Universal Robina Corporation – sector: Food & Beverages

REF: https://www.pse.com.ph/stockMarket/home.html