AC Energy Corp. and Converge Information and Communications Technology Solutions Inc. are set to be included in the 30-member Philippine Stock Exchange index in place of DMCI Holdings Inc. and Emperador Inc.
This was based on the latest PSEi re-composition, which will take effect on Aug. 16, 2021, the local bourse said in a statement Thursday.
PSEi is the basket of the most traded, most liquid and well-capitalized listed firms in the country.
Listed firms, to qualify for inclusion in the PSEi, should have a free float level of at least 15 percent. They should also rank among the top 25 percent by median daily value per month for at least nine out of 12 months, and should rank among the highest in market capitalization.
Following the July 2020 to June 2021 review, the PSE considered companies that conducted large issuances for inclusion in the PSEi.
“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,” said PSE president and chief executive Ramon Monzon.
For the succeeding review period, the 15 percent free float requirement for PSEi inclusion will be increased to 20 percent. “This requirement will be implemented in the December 2022 index review to give listed companies ample time to satisfy this criterion,” the bourse said.
The rule aligns PSE’s index policy with the Securities and Exchange Commission’s Memorandum Circular No. 13 Series of 2017, 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.
Meanwhile, the sector indices will also have a re-composition of member-companies. Rizal Commercial Banking Corp. will be removed from the financials index.
The industrial index will see the inclusion of Alsons Consolidated Resources Inc. 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.
Two companies will be removed in the property index, namely Arthaland Corp. and D.M. Wenceslao & Associates Inc.
Converge ICT and Premier Horizon Alliance Corp. will be included in the services index, while STI Education Systems Holdings Inc. and Harbor Star Shipping Services Inc. will be excluded.
Atlas Consolidated Mining & Development Corp., Marcventures Holdings Inc. and Oriental Peninsula Resources Group Inc. will become new members of the mining and oil index, while Century Peak Holdings Corp. will be removed.