Blue chip stocks are so called best companies in the Philippine market today. They have been selected by the Philippine Stock Exchange to represent the best companies in the country. They are the stocks that represent the Philippine Stock Exchange Index or PSEI.

If you want to know what we think are the current list of Blue chips stocks in the Philippines worth looking at and investing today’s market conditions you can check our Blue chips Stock Picks today.

Blue chip stocks are being reviewed every year from July of the previous year to the month of June of current year. The final list of the 30 stocks are announced normally during August period

These stocks are normally giving good dividends as these companies have a good recurring income. These are big companies and easy to identify in the public as these are brands most notable to many. For example Jollibee foods corporation, Banco De Oro, San Miguel Corporation and the like.

To be able to be considered as a blue chip or the cream of the crop of the stocks, it must meet at least 3 minimum requirements duly reviewed by the Philippine Stock exchange.

1. Liquidity

  • The company should be among the most traded companies. This criteria selects the Top25% in median traded value in 9 out of 12 months

You can see below the traded value (amount in pesos) for the day of Blue chip stocks Emperador (ticker symbol EMP)

An advantage of this is that you can get in and out of the stock anytime because a lot of investors and traders are buying and selling the stock any time of the trading hours

2. Highest in market Capitalization

  • The company should be the biggest in market capitalizations

This is to ensure that the company is strong enough to whether the economic situations that might occur, like the pandemic that we are having now.

You can see here that Emperador has a Market capitalization of 220Billion pesos. It’s a very big company.

Market capitalization can also be computed by the current price of the stock multiplied by the total Market shares available for that stock.

3. Market Float level is >12%

  • The company should have the shares invested in public be greater than 12%.

For the company to be remain in the stock market it should have at least 10% free float level of the equivalent shares that the public can invest in the total amount of capitalization of the market

You can see here that Emperador has a free float level of 15.73%. Once this value becomes lower than 10% the Philippine stock exchange will not allow public to invest on the company so make sure the one you are buying have greater than 10% public float.

Blue chip stocks are very important index category of the stock market. If majority of these stocks are going down in direction, it means that the economic condition of the country may not be good and those can give a signal that it is not the correct time to invest in the market. The opposite therefore is true that if these stocks are going up in direction, it’s the best time to buy and ride the trend.

Watch our sample video on the Selection process for a blue chip stock

The PSE index move up by 2.81%  but albeit due to selective bargain hunting of blue chip stocks that had massive drop last Friday trading.

Bargain hunting during the pre-close period sent the index upward by as much as 1.4%. Todays trading showed good recovery for some of the Blue chip stocks. The index close at 6,446.31

Universal Robina corporation led the group with an upward movement of 6.55% reversing its big drop last Friday due to the news of selling its business in Australia and New Zealand Intersnack. On the other side of the disclosure as well, is its massive share buy back of 3 Billion pesos and 5% increase in dividends value.
















Mining led the drop of the index with -2.55% while holdings (2.97%) and property sector (2.89%) led the index movement

General sentiment of the market is still bearish a we are still about to enter the more strict enhanced community quarantine starting August 6-20, 2021

New vaccines arrival this Aug 3 from COVAX facility could help alleviate a bit the fearfulness on the Delta Variant type Covid virus. This batch of vaccines will come from the distribution centers managed by World Health Organization

On his speech Eduardo Ano said “Yes, bukas darating (they will arrive tomorrow) and the President will be one of those who will welcome the arrival of the vaccines,”

Most of these vaccines will be distributed in national capital region

Last week metro manila mayors’ initiation of implementing ECQ was agreed upon by the national government as the rising cases of Covid is expected to increase by the coming few weeks. Local transmission of the Delta Variant have been noted from the past few days as more data are coming out from the Genome Sequence Center.