JG Summit, Lopez Holdings to be removed from FTSE indices
Gokongwei-led conglomerate JG Summit Holdings will be removed from FTSE (Financial Times Stock Exchange) Large Cap, All World and All Cap Indices, based on the latest rebalancing.
Lopez Holdings, on the other hand, will be removed from FTSE’s Small Cap and All Cap Indices.
The changes will be effective after the close of business on Friday, March 16, 2018.
The rebalancing was announced on March 2 after the semi-annual review of the FTSE Global Equity Index Series – Asia Pacific ex Japan and Japan.
FTSE indices serve as performance benchmarks and aid in the creation of a broad range of financial products, including index tracking funds, derivatives and exchange-traded funds.
“The announcement of JG Summit being removed from a FTSE index would surely continue to be a drag on the PSEi as the stock’s weight is 4.96 percent of the index – expect heavy outflows until the date of effectivity..,” Papa Securities said in a research note on Monday.
In the last few days, shares of JG Summit have declined sharply as investors speculated about the FTSE removal.
JG Summit has the eighth heaviest weight among the companies which form part of the Philippine Stock Exchange index (PSEi).
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