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PSEi breakout levels: From 1,000 to 9,000 points in 30 years




Did you know that it took the Philippine Stock Exchange index (PSEi) 30 years to go from a measly 1,000 level to its current record of 9,000 points?

And that it took the PSEi 17 years to go from 3,000 to 4,000, but only less than two (2) years to breakout from 4,000 to 5,000 points?

PSEi at 9,000 points

Last January 26, 2018, the PSEi finally broke the 9,000-point psychological barrier, to end at a new all-time high record of 9,041.20 points.

Compare that with the very first time the PSEi reached 1,000 points — in July 2, 1987 — a very long time ago!

Going from 1,000 points to 9,000 points is an 800% increase, so if you merely invested in the PSEi back in 1987, your P100,000 investment is now worth almost a million pesos: P900,000. Not bad!

Mr. Wilson Sy, in his PhilEquity Corner column 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 in the last 30 years.

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

 

Some interesting facts from this graph:

1. To go from 3,000 to 4,000 points — just a 1,000-point difference — it took the PSEi 17 years to reach the milestone. The sluggish performance was partly due to the stocks meltdown caused by the Asian financial crisis that began in 1997 and took a heavy toll on Philippine stocks that 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: how long before the PSEi surges from 9,000 to 10,000 points? What’s your bet? :)

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