Security Bank to join 30-company main index
SECURITY BANK Corp. is joining the 30-member Philippine Stock Exchange index (PSEi) next month in place of casino developer and operator Boomberry Resorts Corp., which tracked a downtrend within the review period.
In a memorandum issued on Wednesday, The Philippine Stock Exchange, Inc. announced changes in the composition of the bellwether as well as the sector indices effective Sept. 12.
The PSEi will continue to reflect largely the performance of SM Investments Corp. that accounted for 10.67% of the aggregate float adjusted market capitalization of the index members as of Wednesday, Ayala Land, Inc. (8.53%), SM Prime Holdings, Inc. (7.34%), Ayala Corp. (6.22%), JG Summit Holdings, Inc. (6.22%), Bank of the Philippine Islands (5.52%), Aboitiz Equity Ventures, Inc. (5.44%), BDO Unibank, Inc. (5.23%) and PLDT, Inc. (5.43%).
The other members are Alliance Global Group, Inc., Aboitiz Power Corp., DMCI Holdings, Inc., Energy Development Corp., Emperador, inc., First Gen Corp., Globe Telecom, Inc., GT Capital Holdings, Inc., International Container terminal Services, Inc., Jollibee Foods Corp., LT Group, inc. , Metropolitan Bank & Trust Co., Megaworld Corp., Manila Electric Co., Metro Pacific Investments Corp., Petron Corp., Robinsons Land Corp., Semirara Mining and Power Corp., San Miguel Corp. and Universal Robina Corp.
The changes resulted from the regular review of the composition of the indices covering trading activity between July 2015 and June this year.
To qualify for inclusion in the PSEi, a listed company must meet the float requirement of 12% as well as rank among the 25% with highest daily value per month and among the 30 biggest in terms of market capitalization.
“To provide stability in the selection of PSEi-member companies, a company shall be inserted in the PSEi if it rises above the 25th position by full MCAP (market capitalization), to replace the company that ranks the lowest,” the memorandum read.
“A company shall be deleted in the PSEi if it falls below the 35th position by full MCAP. The vacancy created shall be replaced by the highest ranking company by full MCAP in the reserve list using the volume-weighted average price for 10 trading days prior to the deletion,” it added.
PSE listed DoubleDragon Properties Corp., D&L Industries, Inc., Puregold Price Club, Inc., Robinsons Retail holdings, Inc. and Vista Land & Lifespaces, Inc. on the reserve list.
SECTOR INDICES
Also, the bourse will change the composition of sector indices. Companies must belong to the upper half in terms of median daily value per month in eight of the 12 months in review to be included in the sub-indices.
The Financials index will include AG Finance, Inc. while the Industrial index will have Da Vinci Capital Holdings, Inc. and Ionics, Inc. on board.
The Holding Firms index will have Pacifica, Inc. as new member. A Brown Company, Inc. and Suntrust Home Developers, Inc. will join the Property index.
Four issues will be included in the Services index, namely: Metro Retail Stores Group, Inc., Now Corporation, SBS Philippines Corp. and Yehey! Corp.
“With this regular trading activity review, we hope to ensure that our indices continue to be comprised of stocks that are suitable benchmarks for the market,” PSE President and CEO Hans B. Sicat said in a statement issued Wednesday.