AC Energy, Converge to join PSE index; DMCI, Emperador out in latest review

The Philippine Stock Exchange Inc. (PSE) on Thursday announced key changes in the composition of the local stock barometer, following its latest review that took into consideration early inclusion of large issuances.

Starting August 16, 2021, AC Energy Corp. and Converge ICT Solutions Inc. will be part of the 30-member Philippine Stock Exchange index, replacing DMCI Holdings Inc. and Emperador Inc.

Companies qualified for inclusion in the PSEi need to have at least 15% free float level, ranks among the top 25% by median daily value per month for at least nine of 12 months, and among the firms with the highest market capitalization.

The PSEi said it also considered the early inclusion of large issuances in the July 2020 to June 2021 review.

“We reviewed the index policies of our peer exchanges and took note of provisions that will make our own policies more consistent with what is practiced globally,” PSE president and chief executive officer Ramon Monzon said in an emailed statement.

“The policy revisions we adopted will continue to ensure the quality and integrity of the PSEi and other sector indices,” he added.

Moving forward, companies will be required to have a free float level of at least 20% to qualify in the December 2022 index review, to give firms more time to comply with the criterion.

“Since newly listed companies are mandated to have a 20% free float level, this was a necessary adjustment to our index requirements,” said Monzon.

“Companies that want to consistently be or aspire to become part of the index should make sure that their public float complies, if not exceeds, the minimum level required by the SEC of newly-listed companies,” he added.

The PSE also announced the recomposition of sector indices:

Financials
-Rizal Commercial Banking Corp. to be removed

Industrials
-Alsons Consolidated Resources to be included
-EEI Corp., Shakey’s Pizza Asia Ventures Inc., and Phoenix Petroleum Philippines Inc. to be removed

Holdings Firms
-AbaCore Capital Holdings Inc. to be included
-Lopez Holdings Corp. to be removed

Properties
-Arthaland Corp. and D.M. Wenceslao & Associates Inc. to be removed.

Services
-Converge ICT Solutions Inc., and Premier Horizon Alliance Corp. to be included -STI Education System Holdings Inc. and Harbor Star Shipping Services Inc. to be removed

Mining and Oil
-Atlas Consolidated Mining & Development Corp., Marcventures Holdings Inc., and Oriental Peninsula Resources Group Inc. to be included
-Century Peak Holdings Corp. to be removed
—LDF, GMA News