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.
They will replace power distributor Meralco (MER) and gaming operator Belle Corp. (BEL).
LTG is the holding firm of the Lucio Tan group of companies with interests in liquor, distillery, property and banking businesses, among others. LTG currently lists, as subsidiaries, the following companies: Asia Brewery, Tanduay Distillers, Fortune Tobacco, Eton Properties and Philippine National Bank-Allied Bank.
GTCAP is a conglomerate owned by George Ty and family with interests in Metrobank, Toyota Motor Philippines, insurance company AXA, property developer Federal Land Inc. and power generation firm Global Business Power.
PSEi Inclusion Criteria
The recomposition is part of the regular review of the PSE index. The following three factors are considered for companies to qualify in the PSEia:
- 1. Free Float — the stock must have a public float 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 highest-ranked market capitalization (MCAP), measured by the company’s stock price multiplied by the number of shares being publicly traded.
During the review period, a stock may be added to the PSEi if it rises above the 25th position in terms of full market capitalization, replacing the company that ranks the lowest.
A company, on the other hand, may be removed from the PSE index if it falls below the 35th position in terms of full market capitalization.
PSEi Composition, as of September 2013
The new 30-company PSE index, to take effect starting September 16, is composed of the following.
- Ayala Corp. (AC)
- Aboitiz Equity Ventures (AEV)
- Alliance Global Group Inc. (AGI)
- Ayala Land Inc. (ALI)
- Aboitiz Power Corp. (AP)
- BDO Unibank (BDO)
- Bank of the Philippine Islands (BPI)
- Bloomberry Resorts Corp. (BLOOM)
- DMCI Holdings (DMC)
- Energy Development Corp. (EDC)
- First Gen Corp. (FGEN)
- GT Capital Holdings (GTCAP)
- Globe Telecom (GLO)
- International Container Terminal Services Inc. (ICT)
- Jollibee Foods Corp. (JFC)
- JG Summit Holdings (JGS)
- LT Group Inc. (LTG)
- Metropolitan Bank & Trust Co. (MBT)
- Megaworld Corp. (MEG)
- Metro Pacific Investments Corp. (MPI)
- Manila Water Co. Inc. (MWC)
- Petron Corp. (PCOR)
- Philex Mining Corp. (PX)
- Robinsons Land Corp. (RLC)
- Semirara Mining Corp. (SCC)
- SM Investments Corp. (SM)
- San Miguel Corp. (SMC)
- SM Prime Holdings (SMPH)
- Philippine Long Distance Telephone Co. (TEL)
- Universal Robina Corp. (URC)
The PSE will conduct another review and may revise the PSE index again in February 2014.