PSE raises free float requirement for benchmark index

MANILA, Philippines – The Philippine Stock Exchange (PSE) raised the free float requirement for listed firms to qualify for inclusion in the benchmark PSE index (PSEi) to 15%, from the previous 12%.

PSE president and chief executive officer Ramon Monzon said in a statement on Monday, February 12, that the adjustment was made in anticipation of the plan of the Securities and Exchange Commission (SEC) to increase the minimum public ownership for publicly-listed companies.

Companies must meet the increased public float requirement to qualify for PSEi inclusion and for membership in the sector indices. (READ: PSE named Southeast Asia’s best stock exchange again)

Other than raising the public float requirement, the PSE also implemented other revisions to its policy on managing the PSEi index to ensure that the local bourse’s indices remain at par with global standards and stay responsive to the needs of the market.

Recomposition schedule

Other revisions in the PSEi management policy include the schedule and effectivity date of recomposition. 

The recomposition of the PSEi will now be in February and August, from the previous March and September.

The effectivity date will be “at least 5 trading days after the announcement has been made,” compared to the two-week lead time observed in the past.

The PSE also said the index would remain unchanged based on the review covering the year 2017 alone.

All sectoral indices, however, will see changes in their composition.

The PSE said the Financials index will remove Medco Holdings Incorporated, while the Industrial index will lose 6 members – Crown Asia Chemicals Corporation, Energy Development Corporation, Holcim Philippines Incorporated, Pepsi-Cola Products Philippines Incorporated, Pryce Corporation, and RFM Corporation.

But the Industrial index will add Shakey’s Pizza Asia Ventures Incorporated and SFA Semicon Philippines Corporation.

No new stock will join the Holding Firms sector, but Lodestar Investment Holdings Corporation, Pacifica Incorporated, and Top Frontier Investment Holdings Incorporated will be removed.

Meanwhile, Philippine Realty and Holdings Corporation will be added to the Property sector, while Araneta Properties Incorporated, Cyber Bay Corporation, and MRC Allied Incorporated will be taken out.

The PSE also said MacroAsia Corporation, PhilWeb Corporation, and Waterfront Philippines Incorporated will be part of the Services index.

But 2GO Group Incorporated, Apollo Global Capital Incorporated, Island Information & Technology Incorporated, Premiere Horizon Alliance Corporation, Travellers International Hotel Group Incorporated, and SBS Philippines Corporation will be removed from the Services index. 

The Mining and Oil sector will have Atlas Consolidated Mining and Development Corporation and Century Peak Metals Holdings Corporation among its members, and will remove Marcventures Holdings Incorporated.

The recomposition of indices will take effect next Monday, February 19. – Rappler.com