The study is undertaken in concentration with the stock market development in the Philippines in which information is being collected by the author from various secondary sources of data collection. This is the report which is being prepared so as to avail effective set of information related with the past and the future of the stock market of Philippines (World Bank, 2015). There are certain challenges that hinder in the further development of the stock market. Financial challenge that is being faced by the market was with the shallow and the less diversified investor’s base. A Stock Market Investors list was prepared by PSE and it was evaluated that there were only 525,850 investor’s accounts which were active in 2012 (About PSE, 2015). In this here were 96.4 percent of the accounts which classified as the retail accounts and the remaining were considered as the institutional accounts. Another challenge was that the PSE was still less competitive as there was not effective number of competitors available in the same. With the help of the survey it is being analyzed that in terms of the market capitalization PSE was ranked as the 2nd lowest among the other 5 Asian countries (Ho and Odhiambo, 2017).
With the help of the studies it is being analyzed that PSE is one of the oldest stock exchanges in the Asia. ,MSE i.e. Manila Stock Exchange Inc. was established in 1927 at the time of American Colonial period and was developed by some of the businessmen (Ghosh and Revilla, 2017). In 1930 the market boom was experienced by MSE. With the change in time it was developed that structural changes are one of the necessary aspects which are required to be elevated by the stock market to the international standards. Unification of the two stock exchanges was one of the major changes which took place (World Bank, 2015).
Relevance/Contribution To The Existing Body Of Knowledges
There were certain reasons behind the unification of the two stock exchanges which are MSE and Makati Stock Exchange (About PSE, 2015). The reasons were that the two exchanges available in PSE were having different set of policies, different set of members, and one of the most important aspects both the exchanges were having different stock prices for the same list of the stocks. One of the main reasons for the unification was achieving the economies of scale and this could be done by reducing the operating costs.
Openion On The Research Article
The study is more over based on the past information related with the stock market (Ho and Odhiambo, 2017). Although the information helps in developing effective set of understanding with the stock exchanges of Philippines but it is required that more focus should be developed upon the current position of the same so as to ensure that the more clear image as well as information could be collected.
Potential For Future Research In The Philippine Setting
It is required that the information related with the present state of the Philippine stock market should be gathered with the effect of which more effective understanding related with the market of Philippine could be gained with the effect of which strategies could be developed to help the market and to ensure it could grow and sustain (Ghosh and Revilla, 2017).
Ghosh, S. and Revilla, E. (2017). Enhancing the efficiency of securities markets in East Asia. 1st ed. World Bank Policy Research Working Paper: Washington, D.C.
Ho, S. and Odhiambo, N. (2017). Stock Market Development in the Philippines: Past and Present. Philippine Journal of Development, 41(2), pp.136-156.
About PSE. (2015). Philippine Stock Exchange Inc. (PSE).. [online] Available at: https://pse.com.ph/corporate/home.html [Accessed 11 May 2017].
World Bank. (2015). World development indicators.. [online] Available at: https://data.worldbank.org/data-catalog/world-evelopmentindicators [Accessed 11 May 2017].