PSEi snaps 4-day rally on main index rebalancing

The local stock barometer Philippine Stock Exchange Index (PSEi) on Friday snapped its four-day winning streak as investors are on a wait-and-see mode ahead of the bellwether’s rebalancing.

The main index shed 20.87 points or 0.34% to 6,076.91 at the closing bell. The broader All Shares increased by 4.45 points or 0.12% to 3,595.19.

“Local shares closed lower with funds shifting to track the new weighting of the PSEi which takes effect August 17,” Regina Capital Development head of sales Luis Limlingan said.

The PSE announced that Emperador Inc. will be replacing Semirara Mining and Power Corp. in the 30-stock main index, resulting from the bourse operator’s indices review from July 2019 to June 2020.

Based on PSE’s Policy on Index Management, a company may be considered for inclusion in the PSEi if it has a float level of at least 15%, ranks among the top 25% by median daily value per month in nine out of 12 months and ranks among the highest in market capitalization.

The PSE may also take into account relevant financial criteria to ensure that index constituents are closely representative of the market or a particular sector.

More than 6.801 billion shares valued at P9.456 billion, changed hands. Decliners led advancers, 97 to 88, and 56 issues were unchanged.—LDF, GMA News