PSE retains main index composition.
AFTER reviewing its own performance from January to December last year, the Philippine Stock Exchange left the PSE index (PSEi) as it is, all 30 stocks.
'For this index review period, we increased the minimum free-float level requirement from 12 percent to 15 percent,' PPE President and CEO Ramon S. Monzon said on Monday. 'This adjustment was made in anticipation of the plan of the Securities and Exchange Commission to increase the minimum public ownership for publicly listed companies.'
Aside from the float requirement of 15 percent, a company must meet the liquidity and capitalization criteria to be considered as a PSEi constituent.
All sectoral indices, on the other hand, will see changes in their composition.
The Financials index will lose one member, Medco Holdings Inc. The Industrial index will gain two new members, namely Shakey's Pizza Asia Ventures Inc. and SFA Semicon Philippines Corp., but will lose six members. The members shed include Crown Asia Chemicals Corp., Energy Development Corp., Holcim Philippines Inc., Pepsi-Cola Products Philippines Inc., Pryce Corp. and RFM Corp. No new stock will join the Holding Firms sector, but it will see the removal of Lodestar Investment Holdings Corp., Pacifica Inc. and Top Frontier Investment Holdings Inc.
The Property Sector will see the addition of Philippine Realty and Holdings Corp. and the exclusion of Araneta Properties Inc., Cyber Bay Corp. and MRC Allied Inc.
Meantime, MacroAsia Corp., PhilWeb Corp. and Waterfront Philippines Inc. will be part of the Services index, while 2GO Group Inc., Apollo Global Capital Inc., Island Information and Technology Inc., Premiere Horizon Alliance Corp., Travellers International Hotel Group Inc. and SBS Philippines Corp. will be removed from the index.
The Mining and Oil Sector will have Atlas Consolidated Mining and Development Corp. and Century Peak Metals Holdings Corp. as among its members, but the index will also see the exclusion of Marcventures Holdings Inc.
The recomposition of indices will take effect on February 19.
'To ensure the sustainability and viability of companies that form the index, we shall also take into account the financial condition of companies that are potentially first-time entrants to the main index and companies that form part of the sector indices,' Monzon said.
Other salient revisions on the policy on index management include the schedule and the date the recomposition would take effect.
From the March and September schedules, the recomposition will now be in February and August. The recomposition takes effect at least five trading days after the announcement has been made compared with the two-week lead time observed in the past.