The composition of the Philippine Stock Exchange’s 30-stock benchmark, the PSE index (PSEi) will see some changes starting Feb. 6, 2023.
In a statement, the bourse said DMCI Holdings, Inc. (DMC) and Union Bank of the Philippines (UBP) will be included in the PSEi, replacing Megaworld Corporation (MEG) and Robinsons Land Corporation (RLC).
The latest recomposition is based on the January to December 2022 index review of the PSE. DMC and UBP have been PSEi constituents in the past and rejoining the main index after a year and a half and 14 years, respectively.
To be considered for inclusion in the PSEi, a listed company should be among the top companies in terms of liquidity and market capitalization. It should also have a free float level of at least 20 percent of its outstanding shares.
Relevant financial criteria as well as eligibility for early inclusion are also considered by the PSE in the index review.
“The 20 percent minimum free float requirement was implemented for all indices starting with this index review,” said PSE President and CEO Ramon S. Monzon.
He added that, “We hope to see improved liquidity in the stock market with more shares available from companies that want to remain or qualify for future inclusion in any of the indices.”
In terms of sectoral indices, PSE will replace East West Banking Corporation (EW) in the Financials index. Basic Energy Corporation (BSC) and The Keepers Holdings, Inc. (KEEPR) will be added to the Industrial index while Vitarich Corporation (VITA) will be removed.
The Property index will have four new constituents namely D.M. Wenceslao & Associates, Incorporated (DMW), Filinvest REIT Corp. (FILRT), MREIT, Inc. (MREIT), and RL Commercial REIT, Inc. (RCR).
Meanwhile, Philippine Infradev Holdings, Inc. (INFRA) and Philippine Estates Corporation (PHES) will be excluded from the Property index.
AllDay Marts, Inc. (ALLDY) and Medilines Distributors Incorporated (MEDIC) will both become part of the Services index, which will also see the removal of Metro Retail Stores Group, Inc. (MRSGI) and Philippine Seven Corporation (SEVN).
Finally, the Holding Firms index will see the addition of Lopez Holdings Corporation (LPZ) while the Mining and Oil index will see the removal of Benguet Corporation (BC).
The PSE MidCap index will have a number of changes. The new index members are China Banking Corporation (CHIB), FILRT, MEG, MREIT, RCR, RLC and Synergy Grid & Development Phils., Inc. (SGP).
The seven new PSE MidCap index constituents will take the place of AllHome Corp. (HOME), DDMP REIT, Inc. (DDMPR), DMC, Philex Mining Corporation (PX), Philippine National Bank (PNB), UBP and Vista Land & Lifescapes, Inc. (VLL).
For the PSE Dividend Yield index (PSE DivY index), Citicore Energy REIT Corp., (CREIT), UBP and Security Bank (SECB) will replace Bank of the Philippine Islands (BPI), DDMPR and FILRT.
From its March 28, 2022 launch to January 26, 2023, the PSE MidCap index has gained 4.5 percent while the PSE DivY index has lost 1.1 percent. In the same period, the PSEi was down 1.3 percent.
In August 2022, the Securities and Exchange Commission included securities that make up the PSE DivY index among the eligible Personal Equity and Retirement Account (PERA) investment products.