The Philippine Stock Exchange announced the recomposition of its benchmark index with the addition of AC Energy Corporation and Converge Information and Communications Technology Solutions, Inc. starting August 16, 2021.
In a statement, the bourse said the two securities will replace DMCI Holdings, Inc. and Emperador Inc. in the 30-member PSEi.
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.
“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,” said PSE President and CEO Ramon S. Monzon.
Another policy amendment involves 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 (SEC) 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,” said Monzon.
He added that, “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.”
The sector indices will also have a recomposition of its member-companies with Rizal Commercial Banking Corporation will be removed from the Financials index.
The Industrial index will see the inclusion of Alsons Consolidated Resources and the exclusion of EEI Corporation, 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 Corporation will be removed.
Two companies will be taken out of the Property index, Arthaland Corporation and D.M. Wenceslao & Associates, Incorporated.
Securities that will be part of the Services index are CNVRG and Premier Horizon Alliance Corporation, while STI Education Systems Holdings, Inc. and Harbor Star Shipping Services, Inc. will cease to be components of this index.
Atlas Consolidated Mining & Development Corporation, Marcventures Holdings, Inc., and Oriental Peninsula Resources Group, Inc. will become members of the Mining and Oil index while Century Peak Holdings Corporation will no longer be included as index constituent.