Blue chips pertain to the stocks of well-established, ultra stable companies that have huge market capitalization. These companies have proven record of success and are seen as relatively safer than others.
They are, however, not invincible and are also subject to failure (although unlikely) and price volatility.
Greenhorn stock investors are usually recommended to limit their portfolio to these stocks as these are generally more resilient in weathering economic downturns.
In the Philippines, blue chip stocks refer to the 30 companies composing the Philippine Stock Exchange Index (PSEi). These companies have been selected by the PSE based on:
- free float (the portion of the outstanding shares that are freely available and tradable in the market),
- liquidity (median daily trading value for each month of a twelve-month review period), and
- size – 30 largest companies based on full market capitalization
The table below shows the year-to-date (YTD) performance of Philippine blue chips and the Philippine Stock Index.
It is updated every weekend and can be used to track which ones are actually beating the index (so-called “leaders” or “outperformers”) and which ones are lagging (known as “laggards” or “underperformers”).
Click on the button below to download the table (in pdf format). For market capitalization or market value of index stocks, please visit the Philippine Stock Exchange website.