MANILA, Philippines – The local bourse operator implemented more changes in the composition of the Philippine Stock Exchange index (PSEi), with Union Bank of the Philippines (UnionBank) removed for falling below the required public float.

In a circular released on Thursday, September 28, the PSE said the recomposition of the local stock barometer was prompted by UnionBank’s non-compliance with the 20% minimum free float level required for inclusion in the index.

It added that UnionBank had shares that were deemed public, but should have been classified as non-public. This reclassification effectively reduced the company’s public ownership level.

The PSE, however, reiterated that UnionBank remains well above the 10% minimum public ownership that is required to be listed.

Nickel Asia will replace UnionBank in the PSEi.

The changes will take effect on Wednesday, October 4.

Some subindices will also see a recomposition. The PSE MidCap index will include Keepers Holdings and remove Nickel Asia, while the PSE Dividend Yield index will include Universal Robina Corporation and remove UnionBank. UnionBank will also be removed from the financials sector index.

The PSE earlier removed Aboitiz Power Corporation and Metro Pacific Investments Corporation (MPIC) from the local stock barometer and added Bloomberry Resorts and Century Pacific Food.

Aboitiz Power’s share buyback program led to it falling below the 20% public ownership requirement.

Meanwhile, MPIC is set to be delisted in October after its P28.4-billion tender offer.

The PSEi is composed of a fixed basket of 30 companies. It provides a snapshot of the market’s overall condition by gauging changes in the stock prices of the select listed companies.

In order to qualify for PSEi and sector indices inclusion, a listed firm must be among the top companies in terms of liquidity and market capitalization, and it should also have a free float level of at least 20% of its outstanding shares. Relevant financial criteria as well as eligibility for early inclusion are also taken into account by the PSE in index reviews. – Rappler.com