There is a separate article that talked about the stock index and how to earn from index funds, but there isn’t really a separate page that looks into the businesses that make up the Philippine Stock Exchange index (PSEi).
This article talks about the list of blue chip companies, so-called because they are the top companies in the Philippines according to the Philippine Stock Exchange (PSE).
Philippines’ 30 largest publicly listed companies
Investing in stocks involves buying shares of companies that are publicly listed on the Philippine Stocks Exchange. These companies are transformed from a private entity to a public one in a process called initial public offering or IPO. Of more than 800,000 corporations registered with the Securities and Exchange Commission, only 270 plus are public companies so they can be considered institutions that belong to an exclusive club.
However, when you start buying or selling best-performing stock, you would notice that you can only look at the name of the company and the ticker or symbol. And you would have to dig more and deep so you can get acquainted with the nature of their businesses.
In this article and in the table below is a list of 30 companies in the country that are collectively called the Philippine Stock Exchange Index (PSEI). According to the rules, companies may be added or removed according to three criteria: market cap, liquidity, and free float. For more information, you may visit this discussion on stock index.
|Aboitiz Equity Ventures, Inc.||AEV||Holdings|
|Aboitiz Power Corp.||AP||Power|
|Alliance Global Group, Inc.||AGI||Holdings|
|Ayala Land, Inc.||ALI||Real estate|
|Bank of the Philippine Islands||BPI||Bank|
|BDO Unibank, Inc.||BDO||Bank|
|Bloomberry Resorts Corporation||BLOOM||Holdings|
|DMCI Holdings, Inc.||DMC||Real estate|
|Emperador Inc.||EMP||Food and Beverage|
|First Gen Corporation||FGEN||Power|
|Globe Telecom, Inc.||GLO||Telecommunications|
|GT Capital Holdings, Inc.||GTCAP||Holdings|
|International Container Terminal Services, Inc.||ICT||Logistics|
|JG Summit Holdings, Inc.||JGS||Holdings|
|Jollibee Foods Corporation||JFC||Food and Beverage|
|LT Group, Inc.||LTG||Holdings|
|Manila Electric Company||MER||Power|
|Megaworld Corporation||MEG||Real estate|
|Metro Pacific Investments Corporation||MPI||Holdings|
|Metropolitan Bank & Trust Company||MBT||Bank|
|Puregold Price Club, Inc.||PGOLD||Commerce|
|Robinsons Land Corporation||RLC||Real estate|
|Robinsons Retail Holdings, Inc.||RRHI||Holdings|
|San Miguel Corporation||SMC||Food and Beverage|
|Security Bank Corporation||SECB||Bank|
|SM Investments Corporation||SM||Holdings|
|SM Prime Holdings, Inc.||SMPH||Real estate|
|Universal Robina Corporation||URC||Food and Beverage|
The above list is reviewed by PSE periodically. Update: On August 17, 2020, Semirara Mining and Power Corporation was replaced by Emperador Inc.
Best performing Philippine blue chip stocks
Can you earn when you buy blue chip stocks?
When you buy any of the companies that is part of the Philippine stock index, there are two ways to earn. One is to through the increase of the stock price. A stock is purchased at a low price and then sold at a higher price, with the difference being the gain. There is also a chance that it can decrease, as the price are a subject to many factors that affect its value.
Secondly, you can receive dividends when you buy stocks. Dividends of Philippine companies are part of their business’ profit that they pay out to investors either in the form of cash or stocks. The amount and frequency (how many times they distribute in a year) depend on decision by the corporate board. Most companies issue at least once annually, while others pay out twice.
The table below shows returns of the stocks, which is obtained by the difference between the closing price at the last trading day of last year 2019 and the end of this year 2020. Total return on investment or ROI is computed by adding the stock price change and the dividend yield of these blue chip companies.
The data is updated as of December 29, 2020. See below the best performing blue chip stocks of 2020.
|Ticker||COMPANY||2019 Price||2020 Price||Stocks %||Total ROI|
|MPI||METRO PACIFIC INVESTMENTS CORPORATION||3.48||4.28||22.99%||25.56%|
|LTG||LT GROUP, INC.||11.25||13.10||16.44%||23.77%|
|FGEN||FIRST GEN CORPORATION||24.15||28.15||16.56%||18.55%|
|URC||UNIVERSAL ROBINA CORPORATION||143.02||152.50||6.63%||8.69%|
|GLO||GLOBE TELECOM, INC.||2,020.00||2,030.00||0.50%||5.81%|
|PGOLD||PUREGOLD PRICE CLUB, INC.||39.75||41.00||3.14%||3.14%|
|SM||SM INVESTMENTS CORPORATION||1,043.00||1,049.00||0.58%||0.98%|
|MER||MANILA ELECTRIC COMPANY||310.10||292.00||-5.84%||-0.67%|
|DMC||DMCI HOLDINGS, INC.||6.26||5.66||-9.56%||-1.08%|
|ICT||INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.||128.60||123.50||-3.97%||-1.29%|
|BPI||BANK OF THE PHILIPPINE ISLANDS||87.90||81.35||-7.45%||-5.24%|
|AEV||ABOITIZ EQUITY VENTURES, INC.||51.50||47.25||-8.25%||-5.50%|
|JGS||JG SUMMIT HOLDINGS, INC.||76.95||71.60||-6.95%||-6.42%|
|SMPH||SM PRIME HOLDINGS, INC.||42.10||38.50||-8.55%||-8.06%|
|AGI||ALLIANCE GLOBAL GROUP, INC.||11.66||10.60||-9.09%||-8.62%|
|JFC||JOLLIBEE FOODS CORPORATION||216.00||195.20||-9.63%||-8.96%|
|ALI||AYALA LAND, INC.||45.50||40.90||-10.11%||-9.45%|
|RRHI||ROBINSONS RETAIL HOLDINGS, INC.||80.00||65.00||-18.75%||-17.21%|
|AP||ABOITIZ POWER CORP.||34.20||26.50||-22.51%||-18.06%|
|RLC||ROBINSONS LAND CORPORATION||27.55||21.20||-23.05%||-20.69%|
|SMC||SAN MIGUEL CORPORATION||164.00||128.10||-21.89%||-20.80%|
|BLOOM||BLOOMBERRY RESORTS CORPORATION||10.80||8.11||-24.88%||-21.80%|
|MBT||METROPOLITAN BANK & TRUST COMPANY||66.30||49.05||-26.02%||-23.98%|
|SECB||SECURITY BANK CORPORATION||193.12||134.00||-30.61%||-28.37%|
|GTCAP||GT CAPITAL HOLDINGS, INC.||840.24||585.00||-30.38%||-29.35%|
|BDO||BDO UNIBANK, INC.||158.00||106.80||-32.41%||-31.56%|
What are the best stocks in the Philippines? Particular to the stock index, PLDT tops the list, followed by Emperador and METRO PACIFIC INVESTMENTS CORPORATION. PLDT ranked first on the list, recording 35.63% hike on the price of its shares and issued dividends worth Php 115, giving the highest value among the stocks on the table for its investors.
There are 11 companies that posted positive gains, while sadly the rest were in the negative return territory. BDO Unibank, GT Capital Holdings Inc., and Security Bank Corporation trailed behind on the list.
Remember that this is a historical record, and this does not guarantee future returns.
Aboitiz Equity Ventures, Inc.
Aboitiz Equity Ventures was formed in 1989 and became a publicly-listed company in 1994. A holding company, its businesses are engaged in banking, real estate, consumer goods, and industrials. Among its subsidiaries are Pilmico Foods Corporation, the Republic Cement, Union Bank of the Philippines, and Aboitiz Power Corporation.
Aboitiz Power Corp.
Aboitiz Power Corporation is a subsidiary of Aboitiz Equities Ventures, which is its flagship business and holds all its as its electricity and . Founded in 1998, it operates power generation in renewable energy, coal, oil, hydroelectric and geothermal, as well as distribution facilities across the archipelago.
Alliance Global Group, Inc.
Alliance Global Group, Inc. is a holding company founded by Andrew Tan. Its subsidiaries have interests in food and beverages, real estate development, and gambling. Among its companies include Emperador, Inc., McDonald’s Philippines, and Megaworld Corporation.
The oldest holding firm in the country, Ayala Corporation is engaged in various business enterprises encompassing utilities (water, power, renewable energy), education, retail, property development, telecommunication, information technology, and electronics.
Ayala Land, Inc.
Ayala Land Inc. is a company that is engaged in real estate business. As subsidiary to the holdings firm Ayala Corporation, its into developing estates, residences business centers, shopping malls, hotels and resorts, logistics and property development-related services. The company was listed on the exchange in July 1999.
Bank of the Philippine Islands
Bank of the Philippine Islands is the first bank established in the Philippines and in Southeast Asia, its formation traced in August 1, 1851. It is the primary financial institution of Ayala Corporation, and has domestic and international branches.
BDO Unibank, Inc.
Banco de Oro-Unibank Inc. is the banking arm of SM companies providing universal bank services in the form of time deposits, savings accounts, investment, loans, credit cards remittance, stock brokerage, and time deposits. It was formed on January 2, 1968 as a thrift bank, which was then acquired by Henry Sy.
Bloomberry Resorts Corporation
Bloomberry Resorts Corporation is a company established by Enrique Razon. As a holding company, its core business is into integrated gaming and amusement. Its flagship establishment is the Solaire Resort & Casino, and the company also operates Jeju Sun Hotel & Casino in Jeju Island, Korea.
DMCI Holdings, Inc.
DMCI Holdings, Inc. is a holdings company founded by David Mendoza Consunji. It consolidates all business interests of the Consunji family that included construction, construction-related enterprises, real estate, power, mining, water utilities, and manufacturing. Its subsidiaries are Semirara Mining and Power Corporation, DMCI Project Developers, Inc., and DMCI Mining Corporation.
Emperador Inc., founded on November 26, 2001, is a subsidiary of Alliance Global Inc. and a holding company involved in producing, distributing and licensing of alcoholic beverages. Its multinational licensing agreements and partnership with brands has increased its global distribution system of up to 102 countries.
First Gen Corporation
First Gen Corporation is founded on December 22, 1998. It is focused on power generation through managing power plants utilizing geothermal, hydroelectric, natural gas, solar energy, and wind. Its parent company is Lopez, Inc. through First Philippine Holdings Corporation.
Globe Telecom, Inc.
Globe Telecom, Inc. is one of the major telecommunications companies in the country. Its predecessor company was founded in 1928. One of its primary stockholders is Ayala Corporation, and it had entered joint ventures with ABS-CBN, a media company, and other businesses.
Jollibee Foods Corporation
Jollibee Foods Corporation is a multinational food brand founded by Tony Tan Caktiong in 1975. It won the competition brought about by the entry of McDonald’s several decades ago by offering menu that appeal to Filipino taste. It has since acquired and operated other food companies such as Chowking, Greenwich, Mang Inasal, Red Ribbon, Dunkin Donuts, Smashburger, and Coffee Bean and Tea Leaf, which it acquired this year.
JG Summit Holdings, Inc.
Founded by John Gokongwei, JG Summit Holdings Inc. is another Filipino-Chinese holdings company. Its business interests are into telecommunications, transportation, banking, real estate, petrochemicals, power, and banking. Among its subsidiaries are Digital Telecommunications Philippines, Cebu Pacific, Unionbank, Universal Robina Corporation, Robinsons malls, and Summit media.
International Container Terminal Services, Inc.
The International Container Terminal Services, Inc. is involved in port and terminal operations. Founded in 1987 by Enrique Razon, the company was listed in the stock exchange in 1992 at the Manila and Makati Stock Exchanges, which later on consolidated under PSE. Since then, it has expanded operation not only in the country but also abroad.
GT Capital Holdings, Inc.
GT Capital Holdings, Inc. is the holdings firm of George Ty founded on June 26, 2007. It debuted in the stock exchange on April 20, 2012. Its diversified businesses are in automotive dealership, insurance, infrastructure, banking, power utilities firm, and real estate. Among its subsidiaries include Metrobank, Metro Pacific and Investments Corporation.
LT Group, Inc.
LT Group, Inc. is a holdings firm founded by Lucio Tan on May 25, 1937. Its subsidiaries are companies where Lucio Tan has interests and engaged in distillery, tobacco, banking, real estate and property development. Among its subsidiaries are Asia Brewery, Inc., Fortune Tobacco Corporation, Philippine National Bank, and Tanduay Distillers, Inc.
Manila Electric Company
Manila Electric Company, commonly known as Meralco, is a power distribution company. It operates the only National Capital Region’s electric distribution service. Its precursor, La Electrecista, was established in 1891 and the first provider of electric power in Manila during the Spanish times.
Megaworld is a holdings company with a focus on real estate. It was founded by Andrew Tan and incorporated on August 24, 1989. It had its initial public offering (IPO) on June 15, 1994. The company is engaged in property development, leasing, and marketing. Its portfolio include condominium units, subdivision lots, and retail spaces.
Metropolitan Bank & Trust Company
Metropolitan Bank & Trust Company or Metrobank is founded by George Ty. It is one of the several universal banks in the Philippines. Established in 1962, it has since engaged in various financial enterprises in addition to providing banking services to its clients such as investment, insurance, remittance, loan financing, and stock brokerage.
Metro Pacific Investments Corporation
Metro Pacific Investments Corporation a is holding company that is a joint alliance between Metro Pacific Holdings Inc. and GT Capital Holdings, Inc. It has interest in water, electricity, transportation, and healthcare. Its affiliates and subsidiaries operate the NLEX Luzon Expressway, Subic-Clark-Tarlac Expressway, and a number of hospitals such as Makati Medical Center, Cardinal Santos Medical Center, and Davao Doctors Hospital.
PLDT Inc. is one of the major telecommunications companies in the country. It is considered the oldest business engaged in communications since its establishment in 1928. It has interests in print media, utilities and satellite services on top of its core businesses in wired telephony services, dial-up, and broadband internet services.
Puregold Price Club, Inc.
Puregold Price Club, Inc. is a company into retail and consumer-related businesses. It is the operator of Puregold and S&R brands. The company was established on September 8, 1998 and debuted in the Philippine Stock Exchange during its initial public offering in October 2011. Its founder is Lucio Co, and the company’s headquarters is located in Ermita, Manila.
Robinsons Land Corporation
Robinson Land Corporation is one of the biggest real estate company in the country. Established on June 4, 1980, it is the real estate arm of John Gokongwei’s group of companies and is a subsidiary of JG Summit Holdings, Inc. Its businesses are into construction, development and operation of shopping malls, hotels, offices, condominiums, and residential housing. Among its subsidiaries are Robinson malls, Summit hotels, and Go Hotels.
Robinsons Retail Holdings, Inc.
Robinsons Retail Holdings, Inc., established on February 4, 2002, is a subsidiary of JG Summit Holdings, Inc. It operates the Robinsons department stores, convenience store, specialty store, drug store, and coffee shop. Its brands include Handyman Do it Best, True Value, The Generics Pharmacy, Daiso Japan, Ministop, and Savers Appliances.
San Miguel Corporation
San Miguel Corporation is a diversified holdings company with businesses in food and beverages, fuel, infrastructure, oil, packaging, and power. Its subsidiaries include Magnolia Inc., Ginebra San Miguel, San Miguel Food and Beverage, and Bank of Commerce, among others.
Security Bank Corporation
Security Bank Corporation is another universal bank. Incorporated on June 18, 1951, the company was the first bank that Filipino-owned after World War II. It became a publicly-listed company in 1995. Its services are into retail, financial markets, commercial and corporate banking.
SM Investments Corporation
SM Investments Corporation, considered the biggest company based on market cap, was founded by Henry Sy and is now managed by his family. Its businesses are in retail, banking, and property. It currently operates over 2,300 stores, 72 properties, and a little less than 2,000 banking branches located across he country.
SM Prime Holdings, Inc.
Also part of SM group of companies and the company with the biggest assets in the country, SM Prime Holdings comes next in the list. It is focused on development of shopping malls, event centers, business offices, and residential properties.
Universal Robina Corporation
Universal Robina Corporation is the food and beverage subsidiary of JG Summit Holdings Inc. It is the makers of such beloved Pinoy food and snack brands like Nissin Cup Noodles, Great Taste, Presto, C2, Piattos, Chippy, and so many others. The company was established by John Gokongwei in 1954.
So, how do you invest?
Now that you see the top 30 Philippine companies according to PSE, what now? How do you start buying their shares and investing in them?
As I’ve already discussed in how to invest in Philippine Stock Exchange index that there are several ways.
- Direct stocks. You can buy the company shares on the stock exchange. Just go open an account with a stock brokerage company. There is also minimum investment required, called board lot. You may be interested to find out the best online stock brokers for cheaper trading.
- Index funds. There are several funds that contain all the stocks listed above. They are generally called index funds, which are recommended for first-time investors and for those who want to buy all of the top 30 companies. They can be purchased through an exchange-traded fund like FMETF, mutual funds, UITF, PERA account, or variable universal life insurance policies.
Frequently asked questions
How do you invest in blue chips?
There are two ways: direct stock ownership or index funds. When you buy the shares of these 30 companies, you’d need to follow their weighted proportions or else you would miss mimicking their returns. You can open an account with a stock brokerage firm. For your convenience you can go with those that offer online stock brokerage, especially those that let you open a stock broker account completely online.
If you’re asking which is better, you may read this overview that discusses the pros and cons between direct stocks or investment funds.
What is the minimum investment?
If you want to purchase direct stocks, refer to the PSE board lot as the minimum number of shares depends on the price of the stock.
If you decide to buy all of them, it turns out that you might have to put up a huge capital. In this example, that’s P128,266.50.
That’s why it’s recommended that you go with index funds. Index funds are offered through exchange traded funds (ETF), mutual funds, unit investment trust funds (UITF), Personal Equity and Retirement Account (PERA), or variable universal life (VUL) policy If you don’t have that much money, they would be more appropriate for you. You may open one as low as P50 to P10,000.
How can I buy stocks?
As stated earlier, you can open an account with a brokerage house. Refer to this list of PSE accredited brokers. Once an account is opened, you will be given access to a trading platform where you can buy the stocks.
Where can I buy the stocks? Is it through banks?
As stated above, you can acquire the stocks through the brokers. Banks may have affiliate brokerage house like BDO with BDO Nomura, BPI with BPI Trade, Metrobank with First Metro Securities, etc. Check with your bank for more details.
What is my proof of ownership when I buy stocks?
Your broker will give you electronic proof. The most efficient and cost-effective is through an online portfolio. You may also request for paper certificates to be printed and mailed to you. Additional cost may be charged.
How can I sell stocks? Who should I approach?
You sell the stocks the same way you bought them: through the stock broker.
If the stock price went down, will I experience capital loss/reduction of my investment?
Yes. Stocks are volatile. Their prices go up and down depending on how attractive they are to traders and investors like you. Capital loss occurs when the prices go down. Inversely, you profit when you buy low and sell when prices are high.
How can I track the value of the top 30 companies in the Philippines?
There are many online sources that can provide real-time valuation of the companies. For instance, you may visit PSE for individual stock price of the index or Bloomberg on the updated and current worth of the composite index, chart, and history.Tags