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Now, how is the PSEi calculated? It uses a market capitalization-weighted method. This means that companies with a larger market capitalization (the total value of a company's outstanding shares) have a greater influence on the index's movement. In other words, if a major player like a big bank or a telecom giant does well, it will have a bigger impact on the PSEi than a smaller company. The index is adjusted periodically to reflect changes in the market, such as the addition or removal of companies based on certain criteria. The PSEi acts as a barometer for the Philippine economy, reflecting the performance of major companies and influencing investment decisions. By closely following **PSEi news Philippines**, investors can make more informed choices and understand the broader economic trends.
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