Retailer Puregold Price Club Inc. will replace liquor producer Emperador Inc. in the composition of the 30-company Philippine Stock Exchange index next month.
PSE said the change was a part of a biannual recomposition of the benchmark index being conducted by the local bourse. The latest recomposition, which will take effect March 13, is based on the results of the index review covering trading activities from January to December 2016.
PSE said several changes would also be seen in the composition of sectoral indices. It said for the the financial index, no new company would be added but AG Finance Inc. would be removed from the list.
Five companies will be dropped from the industrial index, including Concepcion Industrial Corp., Del Monte Pacific Limited, Phoenix Semiconductor Philippines, Swift Foods Inc. and Splash Corp., while two companies”•Holcim Philippines Inc. and Vitarich Corp.–will be included.
For the holding firms index, Filinvest Development Corp. will replace Unioil Resources & Holdings Company Inc.
Two companies will join the property index namely, Araneta Properties Inc. and Primex Corp., while Suntrust Home Developers Inc. will be removed.
Apollo Global Capital Inc. will no longer be a part of the services index while changes in the mining and oil index will include the addition of Apex Mining Company Inc. and the removal of The Philodrill Corp. and Trans-Asia Petroleum Corp.
PSE reviews the index composition twice a year to determine which eligible companies should form part of the main and sectoral indices.
A company in PSEi should have a free float level of at least 12 percent, be ranked in the top 25 percent in terms of median daily value per month and be in the top 30 in terms of full-market capitalization.
A company in the sector index should have common stocks among the top 50 percent in terms of median daily trade per month in eight out of the 12-month review period.
“The regular index review is an important exercise as this determines the eligible stocks that should comprise the indices based on the set criteria. We know that some investors stock pick based on the index members and so we want the appropriate securities to represent these indices,” said PSE president and chief executive Hans Sicat.