The Philippine Stock Exchange has deferred the plan to launch a consumer stock index.
PSE chief operating officer Roel Refran said while the exchange previously considered introducing a consumer stock index to reflect the growing representation of the industry in the benchmark equity gauge, the move would require re-balancing or regrouping of the other indices.
Refran said the exchange was also focusing on introducing new products in the market such as the launch the dollar denominated securities trading that would allow trading and settlement in US dollar of securities listed and quoted in the local bourse.
PSE is also set come out soon with the proposed rules on infrastructure listing with the goal of attracting more initial public offerings.
These two new products are expected to boost trading and lure more companies to raise funds through the stock exchange.
“At the moment we are focusing on launching of new products in the market,” Refran said.
Among the consumer or consumer-related stocks listed with the PSE are Universal Robina Corp., Maxs Group Inc., Jollibee Foods Corp., Puregold Price Club Inc., Robinsons Retail Holdings Inc., Pepsi Cola Products Philippines Inc., Century Pacific Food Inc. and Philippine Seven Corp.
There are currently six sub-indices in the exchange, including financial, holding firms, property companies, services, mining and oil and industrial.
First Metro Investments Corp. earlier expressed plan to launch an exchange traded fund that would track the consumer stocks listed with the PSE.
First Metro said it was just waiting for the local bourse to launch the consumer index before it could launch its own ETF.
First Metro said investors would be attracted to invest in an ETF tracking consumer-led stocks as the growth of the domestic economy was largely led by strong consumer spending.
PSE also deferred plans to launch a Shariah index, which tracks the performance of companies considered compliant with the Islamic law.
The move to form a Shariah sub-index will enable the exchange to get a share of the $1.5-trillion global funds.