MANILA, Philippines – The Philippine Stock Exchange (PSE), now one of the best performing in the world, has overcome its bitter past when the two separate exchanges were forced to merge 20 years ago.
The union of the old Makati and Manila stock exchanges were born out of a “shotgun wedding” and resulted in a “loveles marriage,” reminisced PSE chairman Jose Pardo on Monday evening, December 3.
While the commencement of a unified operation was less than ideal, Pardo said it was “necessary.”
“Such marriage that created PSE was necessary to create operational efficiencies [and] make the bourse more competitive in the global environment,” Pardo said in his speech at the event marking the 20th anniversary of the unified exchange.
The MSE (Manila) was established on August 8, 1927, and the MkSE (Makati) on May 27, 1963. Although both traded the same stocks of the same companies, the bourses were separate stock exchanges for decades until 1992, when both exchanges were unified to become the present-day PSE.
The PSE was incorporated on July 14, 1992, and the merger of the MSE and MkSE was declared on December 23 that year. The first general membership of the merged entity was on March 20, 1993.
Among those who were present to toast was former President Fidel V. Ramos who pushed for the unification of the exchanges.
On December 3, the PSE capped its series of anniversary celebrations under the theme “PSE 20: Advancing Together for Progress,” which culminated with the first Bell Awards for corporate governance.
The market closed that day with the benchmark PSE index hitting 5,672.70, the 33rd historic high for 2012. Daily value turnover has surged to P7.6 billion a day.
“The Philippine stock index may reach 6,000 points sooner rather than later,” Pardo told the event’s main guest, President Benigno Aquino III.
Aquino lauded the trading participants and the PSE officials, stressing that the outstanding performance of the PSEi makes his role as the salesman-in-chief easier. – Rappler.com