No changes in PSEi composition in latest review done by PSE

There will be no changes in the 30 stocks comprising the PSE index (PSEi) based on the review covering the January to December, 2017 period done by the Philippine Stock Exchange (PSE).

“For this index review period, we increased the minimum free float level requirement from 12 percent to 15 percent. 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,” said PSE President and CEO Ramon S. Monzon.

Aside from the float requirement of 15 percent, a company must meet the liquidity and capitalization criteria to be considered 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 Corporation but will lose six members including Crown Asia Chemicals Corporation, Energy Development Corporation, Holcim Philippines, Inc., Pepsi-Cola Products Philippines, Inc., Pryce Corporation and RFM Corporation. No new stock will join the Holding Firms sector but it will see the removal of Lodestar Investment Holdings Corporation, Pacifica, Inc. and Top Frontier Investment Holdings, Inc. The Property Sector will see the addition of Philippine Realty and Holdings Corporation and the exclusion of Araneta Properties, Inc., Cyber Bay Corporation and MRC Allied, Inc. Meantime, MacroAsia Corporation, PhilWeb Corporation and Waterfront Philippines, Incorporated will be part of the Services index while 2GO Group Inc., Apollo Global Capital, Inc., Island Information & Technology, Inc., Premiere Horizon Alliance Corporation, Travellers International Hotel Group, Inc. and SBS Philippines Corporation will be removed from the index. Finally, the Mining and Oil Sector will have Atlas Consolidated Mining and Development Corporation and Century Peak Metals Holdings Corporation 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, 2018.

“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 added.

Other salient revisions on the policy on index management include the schedule and the effectivity date of the recomposition. From the March and September schedules, the recomposition will now be in February and August. And the effectivity date will be at least five trading days after the announcement has been made compared with the two-week lead time observed in the past. The list of index management policy revisions is available on the PSE website.