What stocks currently comprise the Philippine Stock Exchange index or PSEi?
What’s the PSEi, in the first place?
Continue reading to have an idea why the knowing the PSE index stocks composition is vital to know.
What is the PSEi?
The PSEi is a collection of thirty (30) publicly traded stocks in the Philippine Stock Exchange (PSE). The performance, or day-to-day change in value, of this index is monitored every trading day because it is seen as a barometer of market sentiment and general economic conditions of the country.
A rising PSEi signals positive outlook in the performance of the 30 companies included in the index, and also acts as proxy for optimistic market and business conditions. Similarly, a declining PSEi could signal pessimism because this translates to lower expected financial returns from the companies belonging to the index.
Some would argue that the PSEi stocks are considered the “blue chip” stocks in the stock market. This is not necessarily true, since other companies may be considered “blue chips” — because they have more stable performance or more reliable returns — and yet they’re not part of the PSEi.
At the same time, to be part of the PSE index, companies need not be “blue chips” per se. They simply have to meet three factors to be eligible for PSEi inclusion.
*View the latest PSEi stock composition by clicking the image below:
PSEi Inclusion Criteria
The PSE looks at the following inclusion criteria when deciding which stocks to include in the index:
- 1. Free Float — the stock must have a public float or minimum public ownership of at least 12%;
- 2. Liquidity — stock 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 — stock should be one of the 30 companies with highest-ranked market capitalization (MCAP), measured by the company’s stock price multiplied by the number of shares being publicly traded.
The PSE regularly reviews the PSEi composition twice a year, once in March and another in September.
During the review period, a stock could be added to the index if it rises above the 25th position in terms of full market capitalization, replacing the company that ranks lower.
A stock, meanwhile, could be deleted from the PSEi if it falls below the 35th position in terms of full market capitalization.
Latest PSE index (PSEi) Composition, as of September 2017
Here are the 30 companies belonging to the PSEi effective September 28, 2017.
| PSE Index (PSEi) Stocks | Company | Stock Code |
|---|---|---|
| 1 | Ayala Corporation | AC |
| 2 | Aboitiz Equity Ventures | AEV |
| 3 | Alliance Global Group, Inc. | AGI |
| 4 | Ayala Land Inc. | ALI |
| 5 | Aboitiz Power | AP |
| 6 | Banco de Oro Unibank, Inc. | BDO |
| 7 | Bank of the Philippine Islands | BPI |
| 8 | Bloomberry Resorts Corp. | BLOOM |
| 9 | DMCI Holdings | DMC |
| 10 | First Gen Corporation | FGEN |
| 11 | Globe Telecom | GLO |
| 12 | GT Capital Holdings | GTCAP |
| 13 | International Container Terminal Services Inc. | ICT |
| 14 | Jollibee Foods Corporation | JFC |
| 15 | JG Summit Holdings | JGS |
| 16 | LT Group | LTG |
| 17 | Metropolitan Bank and Trust Company | MBT |
| 18 | Megaworld Corporation | MEG |
| 19 | Manila Electric Company | MER |
| 20 | Metro Pacific Investments Corporation | MPI |
| 21 | Puregold Price Club, Inc. | PGOLD |
| 22 | Robinsons Retail Holdings Inc. | RRHI |
| 23 | Robinsons Land Corporation | RLC |
| 24 | Semirara Mining Corporation | SCC |
| 25 | Security Bank | SECB |
| 26 | SM Investments Corporation | SM |
| 27 | San Miguel Corporation | SMC |
| 28 | SM Prime Holdings | SMPH |
| 29 | Philippine Long Distance Telephone Company | TEL |
| 30 | Universal Robina Corporation | URC |
RRHI replaces EDC in the PSEi
Effective September 28, 2017, the updated PSEi includes a brand-new addition — Robinsons Retail Holdings Inc. (RRHI) — replacing geothermal firm Energy Development Corp. (EDC).
EDC is removed from the PSEi because its free float level, which should be at least 12%, had dropped below the 12% minimum requirement after a tender offer was made by new investors to minority shareholders of EDC.
That’s the only change in the index composition after the PSEi review this September.
Rumors have it that EDC could eventually be delisted from the stock exchange. If this happens, here are options for EDC investors: What to do if your stock gets delisted?
What are the weights of each stock that comprise the index? Example: if I had P10M, to mimic the index, is there a list of how many shares of each of these 30 stocks I should own? (if I can mimic the index, then I wouldn’t have to get an Index Fund, which still has management fees)