The Philippine Stock Exchange Inc. will retain the 30 companies currently included in the benchmark index, the PSEi, but change the composition of some sectoral indices.
In its memorandum issued on Wednesday, the PSE said the changes would take effect on March 14 following a review of each firm’s performance.
For inclusion in the benchmark index, companies must have a free float level of at least 12 percent; belong to the top 30 firms based on full market capitalization and must be among the top 25 percent by median daily value per month for at least nine out of the last 12 months.
“Our recent review has shown that the top 30 companies in the main index have satisfied the PSE’s criteria on free float level, liquidity and market capitalization that made them eligible to retain their membership in the PSEi,” PSE President and Chief Executive Officer Hans Sicat said.
“The selection criteria adopted by the PSE allow it to consistently provide independent and transparent benchmark indices that investors can use as a tool for measuring the market’s performance,” Sicat added.
The PSE made some revisions to the reserve list, removing Lucio Co’s Cosco Capital Corp. and replacing it with Vista Land and Lifescapes Inc., the property development company of the Villar family.
Others in the reserve list are Nickel Asia Corp., Puregold Price Club Inc., Robinsons Retail Holdings Inc. and Security Bank Corp.
The list is comprised of the five firms with the highest full market capitalization tailing the 30-member PSEi. The said list will be used in the event that one or more firms are deleted from the benchmark index following the next review.
The PSE also announced changes in the sectoral indices, with financial being the exception.
To be included in these indices, companies must rank among the top half in terms of median daily value per month in eight out of the 12-month period under review.
In the industrial index, the PSE booted out Co’s Da Vinci Capital Holdings Inc. and cement firm La Farge Republic Inc., while it added Crown Asia Chemicals Corp., Pryce Corp., Swift Foods Inc., Splash Corp. and Phoenix Semiconductor Philippines Corp.
For holding firms, the PSE removed the A and B shares of ATN Holdings Inc. and Minerales Industrias Corp., and replaced these with IPM Holdings Inc. and Prime Orion Philippines Corp.
For property index, the PSE dropped Rockwell Land Corp. and Sun Trust Home Developers Inc. and replaced these with Double Dragon Properties Corp. and Primex Corp.
For services, Calata Corp. was dropped and 2GO Group Inc., DFNN Inc. and ISM Communications Corp. were added.
Finally, for mining and oil, Oriental Peninsula Resources Group Inc. was removed from the roster.