Prior to March 1994, there were two stock exchanges in
the Philippines: the Makati Stock Exchange, which began operations in 1963, and the Manila Stock Exchange, which was organized in 1927. Each exchange was self-regulating, governed by its respective board of governors elected
annually by the members of each exchange. By mid-1992, the Philippine Securities and Exchange Commission (SEC) proposed that the two exchanges unify and operate under the Philippine Stock Exchange (PSE), an entity incorporated
by the officers of both the Makati and Manila Stock Exchanges. On March 20, 1993, in a general meeting convened by the Philippine presidential committee organized to oversee the union of the two bourses, the members of the two
exchanges agreed to a functional unification and to the employment of a full-time president to administer the PSE.
The PSE implemented on March 25, 1994 an automated
trading system linking the two exchanges. The system resulted in a single trading price for all listed securities and the consolidation of the Makati Stock Exchange and the Manila Stock Exchange into the PSE. Stock trading
activities are now conducted by the PSE on two trading floors: one in Makati City and the other one in Pasig City.
The table below indicates the movements in the
composite index for the Manila Stock Exchange from 1982 to 1993 and the PSE from 1993 to 1998. It also shows the number of companies listed, market capitalization and value of shares traded for the same period.