Liquor producer Emperador Inc. is set to join the 30-company Philippine Stock Exchange index in place of Semirara Mining and Power Corp.
The PSE said the change in the composition of the index was based on the results of the regular review of the PSEi and sector indices covering trading activity for the period July 2019 to June 2020.
Based on PSE’s Policy on Index Management, a company may be considered for inclusion in the PSEi if it has a float level of at least 15 percent, ranks among the top 25 percent by median daily value per month in nine out of 12 months and ranks among the highest in market capitalization.
The local bourse may also take into account relevant financial criteria to ensure that index constituents are closely representative of the market or a particular sector.
Aside from becoming a part of the PSEi, Emperador will also become a constituent of the industrial sector.
The services sector meanwhile will see the removal of Waterfront Philippines Inc. There will be no changes in the composition of the financials, holding firms, property and mining sector indices.
“The semi-annual review of indices ensures that the exchange’s benchmarks reflect the performance of the best securities in the stock market in general and its sectors,” PSE president and chief executive Ramon Monzon said.
All changes will take effect on Aug. 17, 2020.
The share price of Emperador closed unchanged at P9.10 on Friday.