The Philippine Stock Exchange is keeping the status quo for the local stock barometer – comprised of the country’s 30 most traded, most liquid and well-capitalized listed firms, based on the latest index review.
The Philippine Stock Exchange index represents the cream of the crop out of 265 companies listed on the local bourse.
“Our recent review has shown that the top 30 companies in the main index have satisfied the PSE’s criteria on free float level, liquidity and market capitalization that made them eligible to retain their membership in the PSEi,” PSE president and chief executive officer Hans Sicat said on Wednesday.
The latest index composition review covered the trading period of January 2015 to December 2015. Any change would have taken effect this March 14.
“The selection criteria adopted by the PSE allow it to consistently provide independent and transparent benchmark indices that investors can use as a tool for measuring the market’s performance,” Sicat added.
The PSEi includes Ayala Corp., Aboitiz Equity Ventures, Alliance Group Inc., Ayala Land Inc., Aboitiz Power Corp., BDO Unibank Inc., Bloomberry Resorts Corp., Bank of the Philippine Islands, DMCI Holdings, Energy Development Corp., Emperador Inc., First Gen Corp., Globe Telecom, GT Capital Holdings, International Container Terminal Services Inc., Jollibee Foods Corp., JG Summit Holdings Inc., LT Group Inc., Metropolitan Bank & Trust Co., Megaworld Corp., Manila Electric Co., Metro Pacific Investments Corp., Petron Corp., Robinsons Land Corp., Semirara Mining & Power Corp., SM Investments Corp., San Miguel Corp., SM Prime Holdings Inc., Philippine Long Distance Telephone Co. and Universal Robina Corp.
In order to qualify based on the selection criteria for the main index, a company must have at least 12 percent free float of the outstanding shares of a listed stock and pass the liquidity criterion. From there, the top 30 in terms of full market capitalization form the PSEi.
Free float, also known as public float, refers to the portion of the outstanding shares that are freely available and tradable in the market, or those shareholdings which are non-strategic in nature.
In selecting companies that will compose the sector indices, common stocks of the companies within each sector must rank among the top 50 percent in terms of daily value turnover.
The PSE operates the only stock exchange in the Philippines with 265 listed companies and 132 operating trading participants.