Equities Market

The country's stock market also showed signs of recovering from depressed global market sentiments in 2007-2009 particularly during the worst period of the U.S. subprime crisis in 2008. The Philippine Stock Exchange index (PSEi) surged 37.6 percent to close at 4,201 points at end-year 2010, the fourth biggest annual percentage increase in the last ten years.

For its performance in 2010 alone, the PSEi advanced by 1,148 points year-on-year from its level of 3,053 in 2009. During this period, the PSEi peaked at 4,413 points on November 5, 2010 while its lowest level was recorded at 2,788 on February 9, 2010. The broader All-Shares index also rose by 56.7 percent to 3,006 points in 2010 from the previous year's 1,910. All sector specific indices also increased, led by the Holding Firms index followed by the Industrials, Property, Financials, Mining and Oil, and Services, in declining order.

Figure 6.5. Selected Stock Market Performance Indicators

Source: Philippine Stock Exchange

Other stock market indicators similarly showed positive sentiments on the local bourse with an uptrend in overall stock market capitalization and average price per earnings ratio.