PSE sets launch of new sector classification in Q1

MANILA, Philippines — The Philippine Stock Exchange (PSE), the operator of the local bourse, will launch its new sector classification system in the first quarter.

The new system will cover new indexes expanding the sectors to eight from six at present.

PSE president Ramon Monzon said the move to launch a new classification system would align it with global benchmarks.

“Our sector classification system will be restructured to align with global benchmarks to provide investors with more accurate information to aid their data-driven investment decisions,” Monzon said.

Under the plan, Industrial, Services and Mining and Oil sectors will be reclassified into more specific sectors such as Consumer; Energy and Utilities; Industrial; Mining and Materials; and Technology, Media and Telecoms.

“The creation of new sectoral indices will follow suit, but we are also working on developing thematic indexes such as a mid-cap, high dividend and ESG,” Monzon said.

He expressed hopes the new indexes would entice the creation of new index-linked funds.

This developed as the PSE also plans to roll out the second phase of its PSE Easy platform to cover not only initial public offerings (IPOs).

PSE Easy is a web-based application that enables investors to register and subscribe, online, to the exchange’s local small investor program of an initial public offering.

“Phase 2 of PSE EASy will expand subscription options to include follow-on and stock rights offerings. The new version also makes PSE EASy a one-stop-shop with the integration of online payment services,” Monzon said.

The platform, launched in 2019, eliminated the need for investors to personally bring their forms and other requirements to receiving centers.

It was especially useful in light of new business protocols as a result of the COVID-19 pandemic.

Furthermore, the PSE Easy platform provides investors from cities and provinces all over the country the opportunity to participate in the local small investor (LSI) program of an IPO.