CHANGES to the Philippine Stock Exchange’s main and sectoral indices will take effect starting November following a regular review, the bourse yesterday announced.
"The review period covered trading activity for the period of July 1, 2009 to June 30, 2010. All changes in the composition of the indices were based on the previously approved criteria used for selecting the members of the indices," the PSE said in a memorandum posted on its Web site.
Consunji-led DMCI Holdings, Inc., Lopez-led First Gen Corp. and Gokongwei-led JG Summit Holdings, Inc. will replace San Miguel Corp., GMA Network, Inc. and Security Bank Corp. in the 30-member bellwether PSEi.
National Reinsurance Corp. of the Philippines, meanwhile, will bring the number of companies in the financial subsector to 13.
The industrial subsector’s membership will rise to 25 with the addition of Alsons Consolidated Resources, Inc., RFM Corp., Swift Foods, Inc., Trans-Asia Oil and Energy Development Corp. San Miguel Brewery, Inc. will be removed.
The holding firms’ list will extend to 17 with the entry of A. Soriano Corp., Filinvest Development Corp. and Sinophil Corp.
Three companies -- Philippine Realty & Holdings Corp., Fil-Estate Land, Inc. and MRC Allied, Inc. -- will expand the listed property sector to 14.
The service subsector will add two: DFNN, Inc. and Transpacific Broadband Group International, Inc.
The mining and oil subsector, lastly, will add Century Peak Metal Holdings Corp., Oriental Peninsula Resources Group, Inc. and PetroEnergy Resources Corp. Apex Mining Co. will be removed.
To be included in the PSEi -- a basket of stocks regarded as the benchmark of the market’s overall performance -- a listed company must satisfy five criteria: public float level, liquidity, volume turnover, tradability, and free float market capitalization.
Public float refers to the portion of outstanding shares that are readily tradable. The free float portion should make up at least 10% of outstanding shares.
Liquidity involves an average daily value turnover of at least P5 million while volume turnover should be at least 10% of the company’s free float shares.
For tradability, a firm must be traded at least 95% of the days that its shares are eligible for trading.
Liquidity and tradability are considered in selecting firms that will comprise the sectoral indices.
They are required to have an average daily trading value of at least P1 million, with shares traded at least 75% of the total days that these shares are eligible for trading.
The PSE operates the only stock exchange in the country with 248 listed firms and 132 operating participants. -- N. J. C. Morales
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