JG SUMMIT, LOPEZ HOLDINGS TO BE STRICKEN OFF KEY FTSE INDICES

Conglomerates JG Summit Holdings and Lopez Holdings will soon be removed from key FTSE Financial Times Stock Exchange (FTSE) indices, according to a latest review by the London-based index provider.

In a rebalancing that will take effect after the close of business on Friday, March 16, JG Summit will bow out of the FTSE Large Cap, All World and All Cap indices.

Lopez Holdings, on the other hand, will be stricken off FTSE’s Small Cap and All Cap indices.

FTSE indices serve as performance benchmarks and aid in the creation of a broad range of financial products, including in- dex tracking funds, derivatives and exchange-traded funds. Constituents of its indices are regularly adjusted for free float and foreign ownership limits.

The rebalancing was announced on March 2 after the semiannual review of the FTSE Global Equity Index Series— Asia Pacific ex Japan and Japan.

“The announcement of JG Summit being removed from a FTSE index would surely continue to be a drag on the PSEi as the stock’s weight is 4.96 percent of the index—expect heavy outflows until the date of effectivity..,” Papa Securities said in a research note on Monday.

Shares of JG Summit have been on the decline in the past few days as investors speculated on its removal from FTSE.

Led by the Gokongwei group, JG Summit has the eighth heaviest weight among the companies which form part of the Philippine Stock Exchange index (PSEi).

From a 52-week high of P87.15 per share, shares of JG Summit have fallen close to a 52-week low of P63 at the local stock market. It is currently valued by the stock market at around P465 billion.

Lopez Holdings, currently valued by the stock market at around P24 billion, is also trading close to its 52-week low of P5.19 per share.