Emperador out, Puregold in when PSEi recomposes in mid-March

Emperador File Photo

DISTILLER Emperador Inc., the liquor unit of businessman Andrew Tan, will be booted out of the 30-company benchmark index, the Philippine Stock Exchange index (PSEi), when it recomposes in mid-March.

Grocery-chain operator Puregold Price Club Inc. will replace Emperador, the first time the company led by Lucio Co will be included in the benchmark index since its listing in 2011.

The recomposed PSEi will take effect on March 13.

“The regular index review is an important exercise, as this determines the eligible stocks that should comprise the indices based on the set criteria. We know some investors stock pick based on the index members and so we want the appropriate securities to represent these indices,” PSE President and CEO Hans B. Sicat said.

The PSE reviews the index composition twice a year to determine which eligible companies should form part of the main and sectoral indices. The PSEi review takes into account the company’s public float, which should be at least 12 percent, its inclusion in the top 25 percent of securities based on the median daily value per month for at least nine out of the 12 months, and its rank in terms of market capitalization.

Several changes will also be seen in the composition of sectoral indices.

No new company will be added in the Financials index, but AG Finance Inc. will be removed from the list.

Many companies will be dropped from the Industrial index, including Concepcion Industrial Corp., Del Monte Pacific Ltd., Phoenix Semiconductor Philippines Inc., Swift Foods Inc. and Splash Corp., which is now delisted from the PSE.

Two companies—Holcim Philippines Inc. and Vitarich Corp.—will be included in the sector.

For the Holding Firms index, Filinvest Development Corp. will replace Unioil Resources and Holdings Co. Inc. Araneta Properties Inc. and Primex Corp. will be included in the Property index, but Suntrust Home Developers Inc., another firm of Tan, will be removed.

Apollo Global Capital Inc. will no longer be part of the Services index, while changes in the Mining and Oil index include the addition of Apex Mining Co. Inc. and the removal of Philodrill Corp. and Trans-Asia Petroleum Corp.

To be included in the sector indices, the common stocks of the company must rank among the top 50 percent in terms of median daily trade per month in eight out of the 12-month review period.

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