The Philippine Stock Exchange said it retained the composition of the 30-company PSE index (PSEi) following a routine stock performance evaluation.
The PSEi consists of the nation’s 30 most liquid and well-capitalized listed firms. To qualify for inclusion in the PSEi, a listed company should rank among the top in terms of liquidity and total market capitalization. SA listed company should also have a free float of at least 15 percent of outstanding shares. The PSE also considers relevant financial criteria during its periodic reviews.
The outcome of the assessment was derived from the Exchange’s regular index composition review, encompassing the trading period from July 2022 to June 2023. However, the PSE announced alterations to the composition of six of the eight sector indices.
It said that in the Dividend Yield index, Synergy Grid & Development Phils. Inc. will be added, while Aboitiz Equity Ventures Inc. and GMA Network Inc. will be removed.
Petron Corp. will join the Mid-Cap Index, replacing FilREIT Corp. In the Industrial Index, Ionics Inc. and Axelum Resources Corp. will be included and PHINMA Corp. will be removed.
DM Wenceslao Inc. and Shang Properties Inc. will become part of the Property Index, while Lopez Holdings Inc. will be deleted from the Holding Firms Index.
Three firms, DFNN Inc., Medilines Distributors Inc., and Harbor Star Shipping Services, Inc., will be removed from the Services Index, with Philippine Seven Corp. added to the list.
These adjustments are scheduled to take effect on Feb. 5, 2024.
Meanwhile, the PSE announced amendments to its policy on index management to provide more clarity on shares held by pension funds for strategic purposes.
According to the PSE, shares held by pension funds and government-run social security funds are generally considered part of the free float. However, if the fund holds a board seat in the company, the shares should be treated as non-free float.
The PSE removed UnionBank from the PSEi in October 2023 due to the reclassification of the Social Security System’s (SSS) stake in UnionBank from public to nonpublic.