PSE reconstitutes indexes

MANILA, Philippines — The Philippine Stock Exchange (PSE) will be making changes to its sectoral indexes starting Feb. 6, 2023, with DMCI Holdings and Union Bank of the Philippines set to join the 30-company PSE index or PSEi.

Both companies will be replacing Megaworld Corp. and Robinsons Land Corp. based on the PSE’s January to December 2022 index review.

DMCI and UBP have been PSEi constituents in the past and will be rejoining the main index after a year and a half and 14 years, respectively.

To be considered for inclusion in the PSEi, a listed company should be among the top companies in terms of liquidity and market capitalization. It should also have a free float level of at least 20 percent of its outstanding shares. Relevant financial criteria as well as eligibility for early inclusion are also considered by the PSE in the index review.

“The 20 percent minimum free float requirement was implemented for all indexes starting with this index review. We hope to see improved liquidity in the stock market with more shares available from companies that want to remain or qualify for future inclusion in any of the indices,” said PSE president and CEO Ramon Monzon.

In terms of sectoral indexes, PSE will replace East West Banking Corp. in the financials index. Basic Energy Corp. and The Keepers Holdings Inc. will be added to the industrial index while Vitarich Corp. will be removed. The property index will have four new constituents, namely D.M. Wenceslao & Associates, Filinvest REIT Corp., MREIT Inc. and RL Commercial REIT Inc. Meantime, Philippine Infradev Holdings, Inc. and Philippine Estates Corp. will be excluded from the said index. AllDay Marts Inc. and Medilines Distributors Inc. will both become part of the services index, which will also see the removal of Metro Retail Stores Group Inc. and Philippine Seven Corp. Finally, the holding firms index will see the addition of Lopez Holdings Corp. while the mining and oil index will see the removal of Benguet Corp.

The PSE MidCap index will have a number of changes. The new index members are China Banking Corp., FILRT, MEG, MREIT, RCR, RLC and Synergy Grid & Development Phils. Inc.  The seven new PSE MidCap index constituents will take the place of AllHome Corp., DDMP REIT Inc., DMC, Philex Mining Corp., Philippine National Bank, UBP and Vista Land & Lifescapes Inc.

For the PSE Dividend Yield index, Citicore Energy REIT Corp., UBP and Security Bank will replace Bank of the Philippine Islands, DDMPR and FILRT.

From its March 28, 2022 launch to Jan. 26, 2023, the PSE MidCap index has gained 4.5 percent while the PSE DivY index has lost 1.1 percent. In the same period, the PSEi was down 1.3 percent.

In August 2022, the Securities and Exchange Commission included securities that make up the PSE DivY index among the eligible Personal Equity and Retirement Account (PERA) investment products.