Philippine Stock Exchange index rises with national growth

By Emerging Money>,

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The Philippines has had a better year than most other countries , and the Philippine Stock Exchange reflects this: its principal equity index, the PSEi , is up almost 20%.

[caption id="attachment_69533" align="alignright" width="300" caption="The Philippine stock exchange, Makati City"] Image courtesy Jun Acullador: [/caption]

The Philippine Stock Exchange created the PSEi in April 2006 as the successor to the Phisix and the PSE Composite indices. It calculates changes in the free-float market capitalization of the common shares of 30 of the largest and most liquid companies listed on the PSE.

The PSEi's predecessor was given a base value of 1,022.045 on February 28, 1990. The Philippine Stock Exchange also publishes six sector-based indices and an index that includes all companies listed on the exchange.

The Philippines has GDP of $390 billion, the 32nd-highest in the world. The country ranks $200 billion behind Thailand and $100 billion ahead of Vietnam.

Of all the stocks listed on the PSE, Philippine Long Distance Telephone Company ( PHI , quote ) is the only one widely traded on a U.S. exchange. This stock presents good opportunities for both income and growth investors .

Investors can also access the Philippines market through the iShares MSCI Philippines Investable Market Index Fund ( EPHE , quote ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
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