There are 324 companies currently listed in the Philippine Stock Exchange as of 2019. These companies are categorized to Big Caps, Mid Caps, Small Caps, and Penny Stocks.

"pile-of-poker-chips" by Nancho is licensed under CC0

Furthermore, these companies are scattered in 6 indices namely; Financials, Industrials, Holding Firms, Property, Services, and Mining & Oil. Given the wide list of stocks, no wonder it is hard to choose what stock to specifically trade or invest.

If your discipline is in pure trading, then the criteria is somewhat straightforward. All you need to do is to find the most Active and Profitable stocks of the day and from there workout the other details via Technical Analysis and a little bit of Fundamentals.

However, if your discipline is in investing, it is a different story. As Warren Buffet said "Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10, and 20 years from now." Meaning, investors should only pick stocks that have an understandable business model and its Line of Business (LOB) will remain stable several years down the line. "Enter the Blue Chip Stocks".

What Is a Blue Chip Stock?

Also known as Big Caps or Large Caps stock (market capitalization of 1 billion above), it is a well-established, financially sound, and historically secure corporation. Because blue chips are well-known companies, they are easy to follow, often ending up on the front page of the local newspaper. Investors can thus track these companies and evaluate their advertising and marketing strategies.

How to Be Part of the Blue Chip Stock List?

The Stock Index Composite is based on the following criteria:

• Companies with Common Stocks listed in the Philippine Stock Exchange for at least 12 months.
• The company must have a free float (shares owned by the public) of at least 15% at the end of the 12 month review period.
• The company will be tested for liquidity by computing the Median Daily Trading Value for each month of the 12 month period in review.
• The company must rank among the top 25% in terms of Median Daily Trade per month in 9 out of 12 month period in review.
• Companies that passes the above criteria will be ranked from highest to lowest according to their Full Market Capitalization.
• The 30 largest companies based on Full Market Capitalization will be included in the Philippine Stock Exchange Composite Index (PSEi).

Where Can I Find the List of Blue Chip Stocks?

The Philippine Stock Exchange, INC. is the leading authority when it comes to information about the country's Stock Market. You can visit their website by clicking https://www.pse.com.ph/.

Blue Chip Stock List Philippine Stock Exchange - 2019

What Is the Role of Blue Chip Stocks in My Trading/Investing Strategy?

The companies listed in the PSEi serves as the benchmark to measure the performance of the Philippine stock market. If the stock price of the biggest companies are doing well, it is seen as a good sign for the rest of the market. The reverse is also true, if the blue chip prices are tumbling down then the overall market is in a bad shape.