1.What securities are traded in the PSE?

Common Stocks These are usually purchased for participation in the profits and
control of ownership and management of the company. Holders of common stocks have
voting rights. They are also entitled to an equal pro rata division of profits without
preference or advantage over another stockholder. However, they have the last claim
on dividends and are the last to collect in case of corporate liquidation.
Preferred Stocks Its name is derived from preference given to the holders of these
stocks over holders of common stocks. Holders of preferred stocks are entitled to
receive dividends, to the extent agreed upon, before any dividends are paid to the
holders of common stocks. However, preferred stocks usually have a specified limited
rate of return or dividend and a specified limited redemption and liquidation price.
Warrants A corporation can also raise additional capital by issuing warrants. A
warrant, 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 securities market.
Philippine Deposit Receipts (PDRs) A PDR 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 PDR or adjustments to the terms or upon the occurrence of certain
events in respect of rights issues, capital reorganizations, offers and analogous events
or the distribution of cash in the event of a cash dividend on the shares. PDRs are
evidences or statements nor certificates of ownership of a foreign/foreign-based
corporation. For as long as the PDRs arenot exercised, the shares underlying the PDRs
are and will continue to be registered in the name of and owned by and all rights
pertaining to the shares shall be exercised by the issuer.
Small-Demominated Treasury Bonds (SDT-Bonds) The SDT Bonds are long-term
and relatively risk-free debt securities issued by the Bureau of Treasury (BTr) of the
Republic of the Philippines. The bond is a certificate of indebtedness of the Republic of
the Philippines to the owner of the SDT-Bonds.

2. Who are the participants and what are their roles or function?

Investors, also referred

to as stockholders or
shareholders, are those
who own shares of stock
of a publicly listed
company. They are
accorded certain
privileges like the right to
fair and equal treatment,
the right to vote and
exercise related rights,
and the right to receive
dividends and other
benefits due to
stockholders. They are
classified as either retail
or institutional, and local
or foreign.
A stockbroker or trading participant is licensed by the Securities and Exchange
Commission (SEC) and is entitled to trade at the Exchange. They act as an agent
between a buyer and seller of stocks in the market. For their services as stockbrokers,
they receive from their clients either a buying or a selling commission.
There are two (2) types of stockbrokers:
Traditional those who assign a licensed salesman to handle your account and to
take your orders via a written instruction or a phone call
Online those whose main interface is the internet where clients execute their
orders and access market information online
Listed companies, also called issuers, are those whose shares of stock are traded on
the Exchange. These companies qualified with the stringent listing and reportorial
requirements of the PSE, and have gone through initial public offering (IPO) or listing by
way of introduction.
CLEARING HOUSE
Securities Clearing Corporation of the Philippines (SCCP)
The SCCP is a wholly owned subsidiary of the Exchange. It was established to ensure
the orderly settlement of equity trades executed at the PSE. The SCCP uses the
Central Clearing and Central Settlement (CCCS) system purchased from the Capital

Markets Co. (CAPCO) of Belgium.

SCCP is responsible for establishing the cash and securities liabilities and entitlements
of its clearing members, synchronizing the settlement of funds and the transfer of
securities based on the delivery-versus-payment model or multilateral net settlement;
guaranteeing the settlement of trades in the event of a trading participants trade default
in order to ensure the finality and irrevocability of all Exchange trades through its fails
management procedures; implementing appropriate risk management measures in
order to mitigate risks inherent in the clearing and settlement of Exchange trades and
the maintenance and administration of the Clearing and Trade Guarantee Fund (CTGF).
DEPOSITORY
Philippine Depository and Trust Corp. (PDTC)
The PDTC acts as securities depository or custodian of listed shares of stock that are
traded at the PSE. It was organized to establish a central depository in the Philippines
and to implement scripless trading.
The PDTC performs book-entry transfer of securities:
1.
2.
3.

From sellers to buyers accounts during settlement of Exchange trades;

From one PDTC participant to another per client instruction, and;
From lenders to borrowers account for loan transactions.

SETTLEMENT BANKS
The PSE has three (3) accredited banking institutions where trading participants make
and receive payments for stock transactions.
The settlement banks accept deposits of funds for payment of securities bought, confirm
payments of due clearing obligations to SCCP, debit buyers cash account and credit
sellers cash account during settlement, and receive and/or return cash collateral put up
by clearing members to cover their daily trade negative exposures.
The stock transfer agent is considered the official keeper of the corporate
shareholder records. The stock transfer agents provide the issuer or the listed company
with a list of holders of its securities. They effect transfer of beneficial ownership and
process corporate actions like stock or cash dividends, stock rights, stock splits, and
collation of proxy forms.

3. How are securities traded (mechanics of trading)?

Investing Procedures:
Choose a stockbroker. The PSE has a complete list and information about all its trading
participants who are authorized and qualified to trade either equity or debt securities for
you. This list is also available on the Exchanges website and the PLDT directorys
Government and Business listings yellow pages under the category of stock and bond
brokers.
You shall be required to open an account and fill-out a Reference Card 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. Discuss with the trader what
stocks to buy or sell.
Give the order to your broker/trader, and then get the acknowledgement receipt.
For equity transactions: Deliver the Stock Certificate if you are selling or pay within the
settlement date (3 days from date of transaction) if you are buying. Some brokers may
require you to pay with post-dated checks upon ordering.
For SDT-Bonds transactions: Selling investors must open a RoSS account under his
brokers sub-account and instruct his bank-underwriter to transfer the share to this
account. Buying investors must also open an account with a BTr accredited bank and
pay the appropriate amount of transaction to the settlement bank on the trade date.
You shall receive from your broker either the proceeds of sale your stocks (after 3 days
for equities and on the date of trade for SDT-Bonds) or proof of ownership of stocks you
bought (confirmation receipt and invoice). If you wish to have a physical certificate of the
equities you bought, just give instructions to your broker and pay the required upliftment
fee. Buyers of SDT-Bonds will only be given a confirmation slip in lieu of the bond
certificates.

All equity transactions, whether buying or selling has a 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. Historically, settlement was
done manually (27-day cycle). With the advent of 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.
SDT-Bonds transactions, however, are settled on the same day when the trade is
transacted (T+0). There shall be no physical transfer of bond certificates. The transfer of
securities shall be conducted electronically by the BTrs Registry of Scripless Securities

(RoSS). On the other hand, cash settlement will be coursed through the PSEs two
settlement banks namely, Equitable-PCI Bank and Rizal Commercial Banking
Corporation.

4. What is a market index and how is this calculated and used?

A market index is a metric that tracks the performance of a group of stocks. It is an
aggregate value produced by combining several stocks or other investment vehicles
together and expressing their total values against a base value from a specific date.
Market indexes are intended to represent an entire stock market and thus track the
market's changes over time and use it as a benchmark against which to compare their
own portfolio returns.

Calculation of Index Value

5. Stock from PSE

2GO

2GO Group Inc. is a Philippines-based logistics provider. The Company is engaged in

the business of operating vessels, motorboats and other kinds of watercrafts; aircrafts
and trucks; and acting as agent for domestic and foreign shipping companies for
purposes of transportation of cargoes and passengers by air, land and sea within the
waters and territorial jurisdiction of the Philippines. The Company operates in two
segments: the shipping segment renders passage transportation and cargo freight
services, and the non-shipping segment provides logistics services and supply chain
management. The Company owns and operates brands, such as 2GO Travel, 2GO
Freight, 2GO Express, and 2GO Logistics, offering an array of logistics and travel
services. The Company's services include international shipping, international freight
forwarding, customs clearance, domestic shipping: freight and travel, warehousing, land
transport, express, projects and XTrade.

Period

Open

Open Avg.

VWAP

Min Vol

Max Vol

Avg. Daily Vol [m]

Change

1 Week

3.95

3.83

3.86

208k

557k

386k

-0.44

11.14%

1 Month

2.30

3.34

4.24

12k

12M

2,005k

1.21

52.61%

3 Months

1.99

2.54

4.19

12M

695k

1.52

76.38%

6 Months

3.01

2.48

4.05

12M

359k

0.50

16.61%

1 Year

1.60

2.43

3.80

12M

216k

1.91

119.38
%

3 Years

1.79

Last Trade Price:

2.06

3.53

3.51

Open:

12M

104k

3.62

1.72

Previous Close:
Dec 04, 2014

96.09%

3.70

Change:
%Change:
Value:
Volume:

down 0.19
down 5.14%
901,030.00
252,000

High:

3.62

Low:
Avg. Price:

3.50
3.58

P/E Ratio:
(Adjusted)
52 week High:
52 week Low:

SOURCES
http://www.pseacademy.com.ph/LM/investors~details/id1316273868284/Who_are_the_Market_Participants.html
http://divineeconomy.wordpress.com/about-us/due-diligence-helps/investing-in-the-philippine-stock-exchange/
http://www.investinganswers.com/financial-dictionary/investing/market-index-1305
http://www.investopedia.com/terms/m/marketindex.asp
http://bloomberg.com

(21.94)
5.97
1.56