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Philippine stocks grew 800% in 30 years




Did you know that the Philippine Stock Exchange (PSE) was able to achieve an astounding growth of 800% in a span of 30 years?

This means if you invested P100,000 in stocks and just left it there for 30 years, this money is now worth P900,000 — almost a million pesos!

From a measly 1,000 points back in 1987, the Philippine Stock Exchange index (PSEi) grew to an all-time high record of 9,000 points in 2018 and to its current level of 8,000 points this 2019.

All-time high PSEi at 9,000 points

Last year on January 26, 2018, Philippine stocks achieved an all-time high PSEi record of 9,000 points, ending the trading day at 9,041.20 points.

Compare that with the PSEi’s level 30 years ago, on July 2, 1987, with the index hovering at just 1,000 points!

Going from 1,000 to 9,000 points is an 800% increase, so if you invested P100,000 in the PSEi back in 1987 and did nothing afterwards, you will be surprised to know this investment is now worth almost a million pesos: P900,000. Not bad!

Mr. Wilson Sy, PhilEquity’s founder and fund manager, in his column last year in the Philippine Star, gave an interesting rundown of when the Philippine Stock Exchange achieved the round-number breakouts in the last 30 years. Here are the exact dates.

PSE Breakout Levels: From 1,000 to 9,000 points

PSEi LevelDate reachedUnder the administration of President
1,000July 2, 1987Cory Aquino
2,000September 13, 1993Fidel Ramos
3,000December 23, 1993Fidel Ramos
4,000September 14, 2010Noynoy Aquino
5,000March 1, 2012Noynoy Aquino
6,000January 7, 2013Noynoy Aquino
7,000April 22, 2013Noynoy Aquino
8,000March 30, 2015Noynoy Aquino
9,000January 26, 2018Rodrigo Duterte

Here’s a graph showing when these PSEi breakouts were first reached from 1987 to 2018.

PSEi 1,000-Point Breakouts in 30 Years, from 1987 to 2018

Some interesting facts from this graph:

1. It took the PSEi a lengthy 17 years to go from 3,000 to 4,000 points — just a 1,000-point difference. The sluggish performance was partly due to the stocks meltdown caused by the Asian financial crisis that began in 1997 which took a heavy toll on Philippine stocks and lasted a decade.

2. While it took the PSEi 17 years to go from 3,000 to 4,000, it only took less than two (2) years to breakout from 4,000 (in September 2010) to 5,000 points (in March 2012).

3. In the five-year period between 2010 and 2015, Philippine stocks also managed to breach the 1,000-point barrier five (5) times. The PSEi doubled in value from 4,000 points to 8,000 points during this period.

4. To go from 8,000 to 9,000 points, it took the PSEi three (3) years, from March 2015 to January 2018, to reach the new milestone.

The more interesting question now is: when can the PSEi return to 9,000 points? More importantly, can it go to 10,000 points soon? :)

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