Did you know that the Philippine Stock Exchange (PSE) was able to achieve an astounding growth of 800% in a span of more than 30 years?
From 1987 until 2018, the PSE index (PSEi) grew from 1,000 points to 9,000 points, all in all generating a total 30-year return of 800%.
This means if you invested P100,000 in stocks back in 1987 and just left it there for 30 years, this money in 2018 would be worth P900,000 — almost a million pesos!
From a small 1,000 points back during the Cory Aquino administration in 1987, the Philippine Stock Exchange index grew to its highest level of 9,000 during the administration of Rodrigo Duterte in 2018.
As of 2020, however, the PSEi is hovering at the 6,000-7,000 points.
All-time high level of PSEi: 9,041 points
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’ll be surprised to know that your P100,000 investment is now worth almost P1 million pesos: P900,000. Not bad!
Here’s a rundown of when the PSEi achieved the round-number breakouts in the past 30 years. Here are the exact dates and the Philippine President during those times.
PSE Breakout Levels from 1,000 to 9,000
|PSEi Level||Date reached||Under the administration of President|
|1,000||July 2, 1987||Cory Aquino|
|2,000||September 13, 1993||Fidel Ramos|
|3,000||December 23, 1993||Fidel Ramos|
|4,000||September 14, 2010||Noynoy Aquino|
|5,000||March 1, 2012||Noynoy Aquino|
|6,000||January 7, 2013||Noynoy Aquino|
|7,000||April 22, 2013||Noynoy Aquino|
|8,000||March 30, 2015||Noynoy Aquino|
|9,000||January 26, 2018||Rodrigo Duterte|
Here’s a graph showing when these PSEi breakouts were first reached from 1987 to 2018.
PSEi level under each President of the Philippines
Some interesting facts from the graph above:
1. During the time of Pres. Cory Aquino, the 1,000 level of the PSEi was breached on July 2, 1987.
2. During the administration of Pres. Fidel Ramos, in just a 3-month period in 1993, the PSE recorded two new highs at 2,000 points and 3,000 points. The 2,000-point level of the PSEi was reached on September 13, 1993 while the 3,000-point level was reached on December 23, 1993.
3. During the administrations of Pres. Erap Estrada and Pres. Gloria Macapagal Arroyo (GMA), the PSE never reached any new 1,000-point milestone.
The sluggish performance was partly due to the market meltdown caused by the Asian financial crisis that began in 1997 during the time of Pres. Estrada which continued in the subprime mortgage and global economic crisis in 2007 during the time of Pres. GMA which took a heavy toll on Philippine stocks lasting more than a decade.
4. It took the PSEi a long 17 years to go from 3,000 to 4,000 points — just a 1,000-point difference.
5. 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 points (in September 2010) to 5,000 points (in March 2012) during the administration of Pres. Noynoy Aquino.
6. In the five-year period between 2010 and 2015, Philippine stocks also managed to breach the 1,000-point hurdle five (5) times. The PSEi doubled in value from 4,000 points to 8,000 points between 2010 and 2015.
7. It took the PSEi three (3) years to go from 8,000 to 9,000 points — from March 2015 to January 2018 to reach the new milestone. The 9,000-point level was reached on January 26, 2018 during the time of Pres. Rodrigo Duterte.
In 2020, with stocks suffering because of the global COVID-19 pandemic, the PSEi is currently stuck at the 6,000-7,000 level.
When can the PSEi return to 9,000 points? More importantly, will we see a new 1,000-point milestone of the PSEi breaching 10,000 points soon?
Other awesome articles you should be reading right now!