The Philippine Stock Exchange (PSE) must be torn between the devil and the deep blue sea as far as the next rebalancing of its main stock barometer is concerned.
For the first time in the history of the local bourse, a company that the market had widely expected to enter the PSE index (PSEi) saw a sudden reversal of fortune shortly after the rebalancing review cutoff.
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At its peak in early June, online gaming leader Digiplus Interactive Corp. commanded a market capitalization of P276 billion—much bigger than those of brick-and-mortar casino operators, some property developers or even banks.
Previously, there was no doubt among stock market pundits that DigiPlus, which trades under the ticker PLUS, had met all the PSEi eligibility requirements, such as free float and liquidity during the last 12-month review.
Everyone was sure that PLUS would replace Bloomberry Resorts Corp. in the 30-member blue chip basket.
Then came the unexpected free fall amid calls by lawmakers and policymakers for tighter regulations or even worse, a total online gaming ban.
For the month of July alone, as these regulatory risks came to the public mind, PLUS shares have fallen by P32 to just P20 per share. Market capitalization slid to P102 billion, despite a P6-billion stock buyback.
Stock analysts now raise the possibility that there won’t be any PLUS to be added to the PSEi.
Some say the PSE may invoke provision 3.2.1. in its Policy on Index Management under the Rules for Insertion and Removals.
It states: “The rules for additions and removals during the semiannual review are designed to provide stability in the selection of constituents of the PSE indices and at the same time to ensure that the indices are representative of the market by including and/or excluding those companies which have risen or fallen significantly.”
If and when PLUS misses this window, all eyes are on RL Commercial REIT Inc. (RCR) to make the cut instead.
RCR prices have already spiked in recent days on hopes it may debut on the PSEi sooner than originally anticipated.
Expected to become the largest real estate investment trust in the country, RCR is valued by the stock market at P122.57 billion, now eclipsing the valuation of PLUS.
Whether the former stock market darling is in or out, we’ll find out in the coming days. Whatever its decision will be, the PSE must carefully explain the basis. —Doris Dumlao-Abadilla
From central bank vaults to museum walls
It’s not every day that central banking and fine art mix, but that’s exactly what’s happening this July 30 at the National Museum of Fine Arts.
Titled “Kultura, Kapital, Kasalukuyan,” the Bangko Sentral ng Pilipinas (BSP) is teaming up with the National Museum for an art affair featuring gems from the BSP Collection.
The grand opening will happen at the iconic Spoliarium Hall, and guests can expect thoughtful messages from BSP Governor Eli Remolona Jr.
From central bank vaults to museum walls, the BSP is here to show that Filipino art can earn interests, too. —Ian Nicolas P. Cigaral
‘No heroes left behind’
What happens to uniformed personnel once they bow out of public service? The country’s oldest business house hopes to do its part in opening up a robust ecosystem for them and their dependents.
The Armed Forces of the Philippines and Ayala Corp. recently launched the “Saludo sa Serbisyo” Career Assistance Program at Ayala Triangle Gardens.
The collaboration is part of Ayala’s Saludo sa Serbisyo, a comprehensive program that helps active and retired uniformed personnel, civilian employees and their dependents through easier access to the Ayala Group’s products and services. These include housing, car ownership, healthcare, livelihood and career assistance.
The program, whose scope has been expanded, also supports retiring and transitioning personnel with training, job matching and career counseling.
In his remarks during the launch, AFP Chief of Staff General Romeo Brawner Jr. said, “This program is both timely and meaningful. It reminds every transitioning soldier that their story does not end with the uniform. Through this initiative, Ayala opens doors for our personnel to pursue new careers and continue serving the nation in meaningful ways.”
“Ayala builds businesses that allow people to thrive. Few are more deserving of the chance to thrive than the people who keep our country safe from internal and external threats. Ayala’s commitment to our country’s uniformed personnel is part and parcel of our objective demonstrated for over 190 years to help build this country that we call home,”Ayala CEO Cezar Consing said.
“To every soldier who has ever wondered what comes next, this program can be their answer. To every civilian who has ever asked how they can serve, this partnership is their chance. Together, we will prove that in the Philippines, service is not forgotten, and heroes are not left behind,” Brawner added. —Doris Dumlao-Abadilla INQ