DMCI, Unionbank to replace Megaworld, RLC in PSE index

CONSUNJI-LED DMCI Holdings Inc. and Aboitiz-led Union Bank of the Philippines will be included in the PSE index (PSEI) starting February 6.

DMCI and Union Bank will be replacing Megaworld Corp. and Robinsons Land Corp., which will be booted out at the 30-company PSEI, based on the January to December 2022 index review of the Philippine Stock Exchange.

While PSEI constituents in the past, DMCI and Union Bank would be rejoining the main index after 18 months and 14 years, respectively.

To be considered for inclusion in the PSEI, a listed company should be among the top companies in terms of liquidity and market capitalization. It should also have a free f loat level of at least 20 percent of its outstanding shares. Relevant financial criteria as well as eligibility for early inclusion are also considered by the PSE in the index review.

“The 20-percent minimum free float requirement was implemented for all indices starting with this index review. We hope to see improved liquidity in the stock market with more shares available from companies that want to remain or qualify for future inclusion in any of the indices,” PSE President and CEO Ramon S. Monzon said.

In terms of sectoral indices, the PSE will boot out Gotianun’s East West Banking Corp. in the Financials index. Basic Energy Corp. and the Keepers Holdings Inc. of businessman Lucio Co will be added to the Industrial index while Vitarich Corp. will be removed. The Property index will have four new constituents: D.M. Wenceslao and Associates Inc.; Filinvest REIT Corp.; MREIT Inc.; and, RL Commercial REIT Inc.

Meanwhile, Philippine Infradev Holdings Inc. and Philippine Estates Corp. will be excluded from the Property index. The Villar’s Allday Marts Inc. and Medilines Distributors Inc. will both become part of the Services index, which will also see the removal of Metro Retail Stores Group Inc. and Philippine Seven Corp.

The Holding Firms index, meanwhile, will see the addition of Lopez Holdings Corp. while the Mining and Oil index will see the removal of Benguet Corp.

The PSE Midcap index, on the other hand, will have a number of changes. The new index members are China Banking Corp., FILRT, MEG, MREIT, RCR, RLC and Synergy Grid and Development Phils. Inc.

The seven new PSE Midcap index constituents will take the place of Allhome Corp., DDMP REIT Inc., DMCI, Philex Mining Corp., Philippine National Bank, Union Bank and Vista Land and Lifescapes Inc.

For the PSE Dividend Yield index, Citicore Energy REIT Corp., Union Bank and Security Bank will replace Bank of the Philippine Islands DDMPR and FILRT.

From its March 28, 2022 launch to Januar y 26, 2023, the PSE Midcap index has gained 4.5 percent while the PSE Divy index has lost 1.1 percent. In the same period, the PSEI was down 1.3 percent.

In August 2022, the Securities and Exchange Commission included securities that make up the PSE Divy index among the eligible Personal Equity and Retirement Account investment products.