New PSEi composition, as of February 2013

James Ryan Jonas

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.

Solaire will showcase a 27,700 sq. m. gaming area consisting of 1,200 slot machines and 300 gaming tables. It will also house a hotel with 500 rooms and a 1,000-seater grand ballroom.

Bloomberry is owned by tycoon Enrique Razon Jr., who also owns port operator International Container Terminal Services Inc. (ICT), another company in the PSEi.

The PSEi is a basket index of 30 publicly traded companies that are highly active and well-capitalized in the Philippine Stock Exchange (PSE). The PSEi is usually considered a barometer of the Philippine economy; a rising PSEi typically denotes optimism in the country’s economic performance while a declining PSEi may suggest possible economic contraction.

PSEi Criteria

The change is part of the regular review of the stock index by the PSE. For companies to qualify in the PSEi, they must meet the following criteria:

  • 1. Free Float — at least 12% public float;
  • 2. Liquidity — must belong to the top 25% by median daily value turnover per month for at least nine out of 12 months; and
  • 3. Full Market Capitalization — one of the highest-ranked market capitalization, measured by the company’s stock price multiplied by the number of shares being publicly traded

During the review period, a company may be added to the index if it rises above the 25th position in terms of full market capitalization, to replace the company that ranks the lowest. A company, meanwhile, may be removed from the index if it falls below the 35th position in terms of full market capitalization.

New PSEi member stocks

Effective March 11, the new PSE index will be composed of the following 30 companies.

  1. Ayala Corp. (AC)
  2. Aboitiz Equity Ventures (AEV)
  3. Alliance Global Group Inc. (AGI)
  4. Ayala Land Inc. (ALI)
  5. Aboitiz Power Corp. (AP)
  6. BDO Unibank (BDO)
  7. Belle Corp. (BEL)
  8. Bank of the Philippine Islands (BPI)
  9. Bloomberry Resorts Corp. (BLOOM)
  10. DMCI Holdings (DMC)
  11. Energy Development Corp. (EDC)
  12. First Gen Corp. (FGEN)
  13. Globe Telecom (GLO)
  14. International Container Terminal Services Inc. (ICT)
  15. Jollibee Foods Corp. (JFC)
  16. JG Summit Holdings (JGS)
  17. Metropolitan Bank & Trust Co. (MBT)
  18. Megaworld Corp. (MEG)
  19. Manila Electric Co. (MER)
  20. Metro Pacific Investments Corp. (MPI)
  21. Manila Water Co. Inc. (MWC)
  22. Petron Corp. (PCOR)
  23. Philex Mining Corp. (PX)
  24. Robinsons Land Corp. (RLC)
  25. Semirara Mining Corp. (SCC)
  26. SM Investments Corp. (SM)
  27. San Miguel Corp. (SMC)
  28. SM Prime Holdings (SMPH)
  29. Philippine Long Distance Telephone Co. (TEL)
  30. Universal Robina Corp. (URC)

The PSE will conduct another review of the index in September 2013.

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.