Emperador, DMCI exit PSE index

Liquor maker Emperador inc. and construction conglomerate DMCI Holdings inc. have been booted out of the benchmark 30-company Philippine Stock Exchange index (PSEI).

According to the latest review of the PSE, the two companies will be replaced by Ayala-led AC Energy Corp. and broadband internet provider Converge information and Communications Technology Solutions inc. They will be included in the benchmark index starting on August 16.

“We reviewed the index policies of our peer exchanges and took note of provisions that will make our own policies more consistent with what is practiced globally. The policy revisions we adopted will continue to ensure the quality and integrity of the PSEI and sector indices,” PSE president and CEO ramon S. Monzon said. For this review, the companies that qualify for inclusion in the PSE are those with a free float level of at least 15 percent, ranks among the top 25 percent by median daily value per month for at least nine out of 12 months and ranks among the highest in market capitalization.

The PSE also takes into consideration relevant financial criteria when conducting the index review.

For the July 2020 to June 2021 review, another consideration was the early inclusion of large issuances.

For the next review, however, the PSE is increasing its requirement on the company’s free float level, which should be at least 20 percent from the current 15 percent. This requirement will be implemented in the December 2022 index review to give listed companies ample time to satisfy this criterion.

This rule aligns PSE’S index policy with the Securities and Exchange Commission’s Memorandum Circular No. 13 Series of 2017, requiring companies conducting an initial public offering to have a minimum public ownership of at least 20 percent.

“Since newly listed companies are mandated to have a 20 percent free float level, this was a necessary adjustment to our index requirements. Companies that want to consistently be or aspire to become part of the index should make sure that their public float complies, if not exceeds, the minimum level required by the SEC of newly listed companies,” Monzon said.

The sector indices will also have a recomposition of its member-companies.

rizal Commercial Banking Corp. will be removed from the Financials index.

The industrial index will see the inclusion of Alsons Consolidated resources inc. and the exclusion of EEI Corp., Shakey’s Pizza Asia Ventures inc. and Phoenix Petroleum Philippines inc.

For the Holding Firms index, Abacore Capital Holdings inc. will be added and Lopez Holdings Corp. will be removed.

For the Property index, Arthaland Corp. and D.M. Wenceslao and Associates inc. will be kicked out.

Securities that will be part of the Services index are Converge and Premier Horizon Alliance Corp., while STI Education Systems Holdings inc. and Harbor Star Shipping Services inc. were excluded from the index.

Atlas Consolidated Mining and Development Corp., Marcventures Holdings inc. and oriental Peninsula resources Group inc. will become new members of the Mining and oil index while Century Peak Holdings Corp. will no longer be included.