MANILA, Philippines — The Philippine Stock Exchange Inc. announced yesterday that Razon-led Bloomberry Resorts Corp. would be added to the PSE index (PSEi) effective Feb. 18.
The PSEi is the stock market’s barometer and its movement is considered a gauge of investor confidence.
Bloomberry will replace Petron Corp. in the PSEi based on the review of listed companies covering trading activity from January to December 2018.
To qualify for inclusion in the PSEi, a listed firm should be among the top companies in terms of liquidity and market capitalization, the PSE said.
A listed company should also have a free float level of at least 15 percent of its outstanding shares. The PSE also considers relevant financial criteria in the review.
PSE president and CEO Ramon Monzon said the changes came following the regulator review of indices.
“The regular review of indices reflects the dynamic changes in company performance vis-à-vis the standards set by the exchange. In turn, these indices represent the investment opportunities in the Philippine stock market,” he said.
Except for the mining and oil index, all other sectoral indices will see changes in their composition.
The financials index will lose an index member, Asia United Bank Corp. while the industrial index will see the addition of Alliance Select Foods International Inc. and the exclusion of PetroEnergy Resources Corp., Phoenix Petroleum Philippines Inc., and SFA Semicon Philippines Corp.
No new company will be added to the holding firms index but one company, Solid Group Inc., will be removed.
Philippine Infradev Holdings Inc., formerly IRC Properties, will become a constituent of the property index while Philippine Estates Corp. will be dropped from the same index.
Dennis Uy’s Chelsea Logistics Holdings Corp. and Transpacific Broadband Group International are the newest members of the services index, which will also see the removal of Melco Resorts and Entertainment (Philippines) Corp.
The PSE conducts an index composition review twice a year using the me-thodology and criteria identified in the index management policy of the exchange.
Index-related data such as free float and index weights are available on a subscription basis.
Monzon said the results of the next review would be announced in August.