PSE launches indexes on mid-sized firms, high-yielding dividends

The Philippine Stock Exchange Inc. (PSE) has launched two indexes, focusing on mid-sized companies and firms that consistently release high-yielding dividends.

The PSE MidCap Index includes firms listed for at least a year during the review period, and should have a free float of at least 15% of its outstanding shares. It also looks into market capitalization, liquidity, and financial performance.

Among the companies included are AllHome Corp., AREIT, Inc., Bloomberry Resorts Corporation, Cebu Air, Inc., Century Pacific Food, Inc., Cosco Capital, Inc., DoubleDragon Corporation, DMCI Holdings Inc., D&L Industries Inc., Filinvest Land Inc., GMA Network Inc., Manila Water Company Inc., Nickel Asia Corporation, Petron Corporation, Philippine National Bank, Philex Mining Corporation, Robinsons Retail Holdings Inc., Semirara Mining and Power Corporation, Pilipinas Shell Petroleum Corporation, and Vista Land & Lifescapes, Inc.

Meanwhile, the PSE Dividend Yield Index includes firms which regularly issued cash dividends in the past three years. Companies should be listed for at least 12 months, and at least six months for real estate investment trusts (REIT).

The index takes into consideration free float, liquidity, and financial performance of the firms.

The companies in the index are Aboitiz Equity Ventures Inc., Aboitiz Power Corporation, AREIT Inc., Bank of the Philippine Islands, DMCI Holdings, Inc., D&L Industries Inc., Globe Telecom Inc., GMA Network Inc., International Container Terminal Services, Inc., LT Group Inc., Metropolitan Bank & Trust Company, Manila Electric Company, Metro Pacific Investments Corporation, Nickel Asia Corporation, Robinsons Land Corporation, Robinsons Retail Holdings Inc., Semirara Mining and Power Corporation, Security Bank Corporation, PLDT Inc., and Universal Robina Corporation.

The base data and base level for both indexes is December 30, 2010 at 1,000. The subsequent levels will be computed at the end of every trading day.

“Ever since, we only have the main composite, All Shares, and sectoral indices in the PSE. These thematic indices are long overdue and we are pleased to finally make available the first two sets of new indices,” PSE President and Chief Executive Ramon Monzon said in an emailed statement.

“In developing these indices, we consulted with market participants to ensure that the selection criteria and methodology are acceptable to those who want to trach or benchmark on the new indices,” he added.

The PSE MidCap Index closed Monday up 0.39 points or 0.03% to 1,195.49, while the PSE Dividend Yield Index closed down by 0.56 points or 0.03% to 1,708.00.

“With the launch of these two indices, we hope to see more funds created that will track these new benchmarks,” Monzon said.

“We think this will also provide fund managers and investors the opportunity to diversify their portfolio,” he added. — BM, GMA News