The Philippine Stock Exchange (PSE) issued a clarification on October 29 as regards the adjustment in the index weight of the Henry Sy-led property conglomerate SM Prime Holdings (SMPH).
Revised PSE index (PSEi) composition, as of September 2013
Two new companies are now part of the 30-company benchmark Philippine Stock Exchange index (PSEi), replacing two others that failed to meet the inclusion criteria.
The Philippine Stock Exchange (PSE) announced last week that LT Group Inc. (LTG) and GT Capital Holdings (GTCAP) will from part of the PSEi effective September 16 this year.
MSCI Philippines Index vs. PSEi Annual Returns
Last week, Philippine stocks suffered a beating following a sharp decline in the stock price of SM Investments Corp. (SM), a large conglomerate with market capitalization of more than P641 billion. A big price fluctuation in such a large company would no doubt lead to a big movement in the Philippine stock market. And we saw this happen last week.
But why? What explains the sudden price drop of SM that led to an overall decline in the prices of Philippine stocks?
PSE stocks suffer worst 1-day loss since 2008, what’s next?
Philippine stocks experienced a sharp one-day drop yesterday, recording the worst stock market performance since 2008, during the collapse of investment banking giant Lehman Brothers.
The Philippine Stock Exchange index (PSEi) registered a huge 6.75% loss yesterday (June 13, 2013), closing at 6,114.08 — a steep decline not seen since October 27, 2008 when local stocks dropped a whopping 12.27% as an aftermath of the Chapter 11 bankruptcy filing of Lehman Brothers in September 2008.
New PSEi composition, as of February 2013
Gaming operator Bloomberry Resorts Corp. (Stock Code: BLOOM) will replace property firm SM Development Corp. (SMDC) in the Philippine Stock Exchange index (PSEi) starting March 11.
Bloomberry is currently one of the local bourse’s most actively-traded stocks following its announcement that it will open Solaire, a casino and resort entertainment complex, in the 120-hectare Pagcor Entertainment City in Pasay City this month.
2012 PSE index (PSEi): Cebu Pacific out, Petron in
Those holding Cebu Pacific (CEB) stocks are probably wondering what’s causing the stock to plummet during the past trading days. In just one week, the stock price of budget airline Cebu Pacific has declined by 9.3%, closing at P61.40 in last Friday’s (August 24) trading.
It’s actually been a losing battle for CEB stockholders since the company’s hyped initial public offering (IPO) in 2010. On its first trading day on the Philippine Stock Exchange (PSE) in October 2010, Cebu Pacific rose to P133.00 from its IPO price of P125.00. Unfortunately, the stock has not recovered from that all-time high price. It even ended the year 2011 at half the price, closing at P64.80 on the last trading day.
Top 10 Best and Worst PSE index stocks (2011)
The year 2011 gave stock investors and stock traders a mix of highs and lows. The Philippine Stock Exchange index (PSEi), for one, booked a modest year-on-year gain of only 4.07% for the entire year 2011. This was in stark contrast with the PSEi’s 1-year return of 37.60% in 2010 and 63.00% in 2009.
But then again, this slight uptick seems to hide the tumultuous fluctuations in stock prices that occurred in the past year. Today, the last trading day of the year, the PSEi closed at 4,371.96. Compare this with the PSEi’s lowest level of the year of 3,705.18 recorded on February 28, 2011 and its all-time high level of 4,563.65 registered on August 2, 2011.
The same whirlwind of prices was seen in several individual stocks traded on the local bourse. We have summarized below the best- and worst-performing stocks comprising the PSE index, in terms of 1-year gain (or loss) in 2011.
New PSEi composition, as of September 2011
Five (5) new companies are to be included in the revised Philippine Stock Exchange index (PSEi) effective September 12.
These five companies are Belle Corporation (BEL), Cebu Air Inc. (CEB), San Miguel Corporation (SMC), Semirara Mining Corporation (SCC) and SM Development Corporation (SMDC).
They will replace ABS-CBN Corporation (ABS), Filinvest Land Inc. (FLI), First Philippine Holdings Corp. (FPH), Lepanto Consolidated Mining Company (LC/LCB) and Security Bank Corporation (SECB) that were previously included in the PSEi as of May 2011.
The updated 30-company PSE index is as follows.