Puregold to replace Emperador in PSEi
PUREGOLD Price Club, Inc. will form part of the Philippine Stock Exchange index (PSEi) starting March 13, having emerged among the 30 biggest and most active in the bourse five years after its lackluster market debut in 2011.
In a memorandum issued on Wednesday, The Philippine Stock Exchange, Inc. announced the supermarket operator will replace liquor manufacturer Emperador, Inc. in the equities basket used as benchmark for local share prices.
The PSEi will continue to reflect the performances of Ayala Corp.; Aboitiz Equity Ventures, Inc.; Alliance Global Group, Inc.; Ayala Land, Inc.; Aboitiz Power Corp.; BDO Unibank, Inc.; Bank of the Philippine Islands; DMCI Holdings, Inc.; Energy Development Corp.; First Gen Corp.; Globe Telecom, Inc.; GT Capital Holdings, Inc.; and International Container Terminal Services, Inc.
The other members are Jollibee Foods Corp.; JG Summit Holdings, Inc.; 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.; Security Bank Corp.; San Miguel Corp.; SM Prime Holdings, Inc.; PLDT, Inc. and Universal Robina Corp.
The bourse revisits the composition of the PSEi, along with the sectoral indices twice a year. The latest re-composition, which will take effect on March 13, reflects the results of the review covering trading activity from January to December 2016.
A listed company must meet the float requirement of 12%; belong to the upper 25% in terms of daily value per month; and rank among the 30 biggest in terms of market capitalization to qualify for inclusion in the PSEi.
The exchange adds a company to the PSEi upon rising above the 25th position by full market capitalization and replaces the lowest- ranking member of the index, according to the memorandum.
On the other hand, a company is deleted in the PSEi upon falling below the 35th position by full market capitalization. The PSE will fill the vacancy with the highest ranking company in the reserve list, taking into account the volume-weighted average price for 10 trading days prior to the deletion.
The updated reserve list includes Cebu Air, Inc.; DoubleDragon Properties Corp.; D& L Industries, Inc.; Robinsons Retail Holdings, Inc.; and Vista Land & Lifescapes, Inc.
The PSE will implement changes in the sector indices alongside. To qualify for inclusion, a stock must emerge among the top 50% in terms of median daily trade per month in eight out of the 12 months of the review period.
AG Finance, Inc. and Apollo Global Capital, Inc. will leave the Financials and Services indices, respectively, without replacement. In the Holding Firms counter, Filinvest Development Corp. will replace Unioil Resources & Holdings Company, Inc.
The PSE will drop five companies from the Industrial index: Concepcion Industrial Corp.; Del Monte Pacific Ltd.; Phoenix Semiconductor Philippines Corp.; Swift Foods, Inc.; and recently delisted Splash Corp. The basket will include Holcim Philippines, Inc. and Vitarich Corp. starting March 13.
Araneta Properties, Inc. and Primex Corp., meanwhile, will bump off Suntrust Home Developers, Inc. in the Properties sector. The Mining and Oil index will take in Apex Mining Company, Inc. and drop The Philodrill Corp. and Trans-Asia Petroleum Corp.
“The regular index review is an important exercise as this determines the eligible stocks that should comprise the indices based on the set criteria,” PSE President and Chief Executive Officer Hans B. Sicat said in a statement.
“We know that some investors pick stocks based on the index members and so we want the appropriate securities to represent these indices,” Mr. Sicat added. —