The Philippine Stock Exchange (PSE) has raised the free float requirement for inclusion in its benchmark index in line with the corporate regulator’s plan to raise the public ownership floor for listed companies.
No changes will be made to the bellwether PSE index’s composition following a regular review, the bourse also announced on Monday, but several firms will be removed or added to sectoral indices beginning February 19.
“For this index review period, we increased the minimum free float level requirement from 12 percent to 15 percent. This adjustment was made in anticipation of the plan of the Securities and Exchange Commission to increase the minimum public ownership for publicly-listed companies,” PSE President and CEO Ramon Monzon said.
“To ensure the sustainability and viability of companies that form the index, we shall also take into account the financial condition of companies that are potentially first time entrants to the main index and companies that form part of the sector indices,” he added.
The financial and holding firm indices will have no additions but will instead see the exit of Medco Holdings, Inc. (financials) and Lodestar Investment Holdings Corp., Pacifica, Inc., and Top Frontier Investment Holdings, Inc. (holding firms).
The industrial index will gain two new members, Shakey’s Pizza Asia Ventures, Inc. and SFA Semicon Philippines Corporation, but will lose Crown Asia Chemicals Corp., Energy Development Corp., Holcim Philippines, Inc., Pepsi-Cola Products Philippines, Inc., Pryce Corp. and RFM Corp.
The property sector will see the addition of Philippine Realty Holdings Corp. and the removal of Araneta Properties, Inc., Cyber Bay Corp. and MRC Allied, Inc.
MacroAsia Corp., PhilWeb Corp. and Waterfront Philippines, Inc., meanwhile, will join the services index while 2GO Group Inc., Apollo Global Capital, Inc., Island Information & Technology, Inc., Premiere Horizon Alliance Corp., Travellers International Hotel Group, Inc. and SBS Philippines Corp. will exit.
Atlas Consolidated Mining and Development Corp. and Century Peak Metals Holdings Corp. will join the mining and oil index, which will see the departure of Marcventures Holdings, Inc.