MANILA, Philippines — AC Energy Corp. and fast-growing Converge Information and Communications Technology Solutions Inc. are the newcomers to the prestigious 30-member Philippine Stock Exchange index (PSEi) following the latest review by the local bourse.
AC Energy and Converge will take the place of DMCI Holdings Inc. and Emperador Inc. effective Aug. 16.
AC Energy has become Southeast Asia’s largest renewable energy company while Converge made it to the PSEi in less than a year after its market debut.
Companies that qualify for inclusion in the PSEi are those with a free float level of at least 15 percent, rank among the top 25 percent by median daily value per month for at least nine out of 12 months, and rank among the highest in market capitalization.
The PSE also takes into consideration relevant financial criteria when conducting the index review.
From the July 2020 to June 2021 review, another consideration was the early inclusion of large issuances.
PSE president and CEO Ramon Monzon said the PSE adopted policy revisions at par with global practices.
“We reviewed the index policies of our peer exchanges and took note of provisions that will make our own policies more consistent with what is practiced globally. The policy revisions we adopted will continue to ensure the quality and integrity of the PSEi and sector indices,” Monzon said.
The PSE is also implementing the amendments to the higher free float level, which should be at least 20 percent from the current 15 percent.
This requirement will be implemented in the December 2022 index review to give listed companies ample time to satisfy this criterion.
This rule aligns PSE’s index policy with the Securities and Exchange Commission (SEC)’s memorandum circular, requiring companies conducting an initial public offering to have a minimum public ownership of at least 20 percent.
“Since newly listed companies are mandated to have a 20 percent free float level, this was a necessary adjustment to our index requirements. Companies that want to consistently be or aspire to become part of the index should make sure that their public float complies, if not exceeds, the minimum level required by the SEC of newly listed companies,” Monzon said.
Rizal Commercial Banking Corp., meanwhile, will be removed from the financials index while the industrial index will see the inclusion of Alsons Consolidated Resources and the exclusion of EEI Corp., Shakey’s Pizza Asia Ventures Inc., and Phoenix Petroleum Philippines Inc.
For the holding firms index, AbaCore Capital Holdings Inc. will be added while Lopez Holdings Corp. will be removed, following the latest review.
Two companies will be taken out of the property index. They are Arthaland Corp. and D.M. Wenceslao & Associates Inc.
For the services index, Converge and Premier Horizon Alliance Corp. will be included while STI Education Systems Holdings Inc. and Harbor Star Shipping Services Inc. will cease to be components of this index.
Atlas Consolidated Mining & Development Corp., Marcventures Holdings Inc., and Oriental Peninsula Resources Group, Inc. will become members of the mining and oil index while Century Peak Holdings Corp. will no longer be included as index constituent, data from the PSEi showed.