The holding firms of tycoons Lucio Tan and George Ty will replace Manila Electric Co. (Meralco) and Belle Corp. on the list of firms making up the benchmark index of the Philippine Stock Exchange (PSE).
The PSE announced on Wednesday that the new composition of Philippine Stock Exchange index (PSEi) will take effect on September 16. The new structure of the 30-member benchmark index will no longer include Meralco and Belle Corp. They will be replaced by LT Group Inc. (symbol LTG) and GT Capital Holdings Inc. (symbol GT Cap).
According to PSE, to be included in the PSEi, a listed firm must be among the top companies in terms of liquidity and full market capitalization, and its free float level should be higher than the minimum requirement of 12 percent.
“The changes reflect the dynamics of the market. The periodic review of the main index and the sector indices is necessary to give the investors a reliable and transparent gauge of the market’s performance and trading activity,” said Hans Sicat, PSE president and chief executive officer.
Among the sector indices, the industrial sector had the most changes as four companies were added to the index while three were removed.
The recomposition was a result of the PSE’s regular review of its indices and covered trading activity from July 2012 to June 2013.