No change in PSE index; sectors undergo revamp

THE 30-member Philippine Stock Exchange index (PSEi) will remain unchanged, according to the bourse’s latest review covering full year 2017.

The Philippine Stock Exchange ( PSE) announced in a statement on Monday that while there will be no changes to the main index’ composition, it has increased the minimum free float level requirement to 15% from 12% previously.

“This adjustment was made in anticipation of the plan of the Securities and Exchange Commission ( SEC) to increase the minimum public ownership ( MPO) for publicly- listed companies,” PSE President and Chief Executive Officer Ramon S. Monzon was quoted as saying in a statement.

The SEC had released a memorandum circular last November 2017 requiring companies seeking to conduct an initial public offering to have an MPO of at least 20%.

The corporate regulator has yet to release guidelines on how publicly listed companies should comply with the new rules, but noted in a draft circular that publicly listed firm will first be directed to reach a public float of at least 15% this year, before further raising it to 20% by 2020.

The PSE takes into account a company’s public float, liquidity, and capitalization in order to determine its suitability to be part of the index, which is seen as a gauge for investor sentiment.

“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,” Mr. Monzon added.

On the other hand, PSE’s six sectoral indices will be revamped.

The sub- index for holding firms will lose Lodestar Investment Holdings Corp., Pacifica, Inc., and Ramon S. Ang-led Top Frontier Investment Holdings, Inc.

Philippine Realty and Holdings Corp. will be added to the property sector, while Araneta Properties, Inc., Cyber Bay Corp., and MRC Allied, Inc. will be dropped.

To be included in the index for services are MacroAsia Corp., PhilWeb Corp. and Waterfront Philippines, Inc. On the other hand, 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 no longer be part of the services index.

Medco Holdings, Inc. will no longer be part of the financial index.

The industrial index will add two firms: Shakey’s Pizza Asia Ventures, Inc. and SFA Semicon Philippines Corp., while removing six firms, namely Crown Asia Chemicals Corp., Energy Development Corp., Holcim Philippines, Inc., Pepsi-Cola Products Philippines, Inc., Pryce Corp., and RFM Corp.

Atlas Consolidated Mining and Development Corp. and Century Peak Metals Holdings Corp. entered the mining and oil sector, while Marcventures Holdings, Inc. has been removed from the sub-index.

The changes will be implemented on Feb. 19. This is in line with the PSE’s policy that changed the recomposition schedule to February and August, instead of the previous March and September schedules.