SUPERMARKETS operator Puregold Price Club Inc. will soon join the top 30 stocks that comprise the Philippine Stock Exchange index (PSEi), replacing liquor maker Emperador Inc.
The change will take effect on March 13 and is based on the PSE index’s latest recomposition.
“The regular index review is an important exercise as this determines the eligible stocks that should comprise the indices based on the set criteria. We know that some investors stock pick based on the index members and so we want the appropriate securities to represent these indices,” PSE President and Chief Executive Officer Hans B. Sicat said on Wednesday.
To be included in the PSEi, companies should have a public float of at least 12 percent, be among the top 25 percent of securities based on the median daily value per month for at least nine out of 12 months, and be among top 30 companies in terms of market capitalization.
Given the strong interest in consumer stocks, Puregold has seen active buying in 2016. It has 33 percent public ownership and P122.7 billion market capitalization at present.
Shares of Emperador, on the other hand, were mostly sold in 2016, trading at around P7 per share by end-2016 compared to its P9 price at the start of the year. Emperador currently has a 16.53 percent public float with a market cap of P114.4 billion.
In the sectoral indices, only AG Finance Inc. was removed from the financials index. For the industrial index, two companies will be added (Holcim Philippines Inc. and Vitarich Corp.) while five firms will be dropped, namely Concepcion Industrial Corp., Del Monte Pacific Limited, Phoenix Semiconductor Philippines, Swift Foods, Inc., and the recently delisted Splash Corp.
Filinvest Development Corp. will replace Unioil Resources & Holdings Company Inc. in the holding firm index, while the property index will be joined by Araneta Properties Inc. and Primex Corp. while Suntrust Home Developers Inc. will be removed.
Apollo Global Capital Inc., the prospective backdoor listing vehicle of mining firm JDVC Resources Inc., will no longer be included in the services index. The mining and oil index, on the other hand, will include Apex Mining Company Inc. while Philodrill Corp. and Trans-Asia Petroleum Corp. will be removed.