Maynilad might enter PSEi by Aug–study

MANILA, Philippines — Maynilad Water Services Inc. is likely to enter the Philippine Stock Exchange Index (PSEi) in the next rebalancing in August, setting off a tight race among existing constituents fighting to retain their spots.

This is according to a joint report by First Metro Securities Brokerage Corp. and DBS Bank, which cited Maynilad as a “strong candidate for early inclusion” based on current market capitalization and liquidity metrics.

READ: Maynilad eyes fresh fundraising after November 2025 IPO

Since its initial public offering in November 2025, Maynilad has rallied by about 47 percent, lifting it to 22nd place among public companies by full market capitalization. This is well within the threshold for index inclusion.

The company is also expected to meet the early inclusion criteria, including the six-month minimum trading requirement and liquidity thresholds, as it ranks within the top 20 percent in median daily trade.

Its inclusion, however, will displace the lowest-ranked stock in the index. Three companies—Converge ICT Solutions Inc., ACEN Corp. and DigiPlus Interactive Corp.—are seen as the most likely candidates for deletion.

READ: MWSS told to address Muntinlupa City water supply interruptions

Among them, Converge ranks last by full market capitalization, making it the most vulnerable to removal, while DigiPlus and ACEN are closely trailing.

However, analysts stressed that the outcome remains highly sensitive to share price movements and trading volumes over the next two months leading up to the June cutoff period.

Assuming trading volumes remain stable, price sensitivity analysis suggests that DigiPlus and ACEN currently have a slight edge over Converge in retaining their index spots, although the margin remains narrow.

Three scenarios

The report outlined three possible scenarios: a 40-percent probability that Maynilad enters while Converge exits; a 30-percent chance that ACEN is removed; and another 30-percent probability that DigiPlus is dropped from the index.

These projections were derived using extrapolated 12-month volume-weighted average price data covering July 2025 to June 2026, alongside assumptions of constant prices and trading volumes through the review period.

Under PSE rules, companies must meet minimum free float and liquidity requirements, while also ranking among the top 30 firms by full market capitalization to qualify for index inclusion.

For early entrants, the exchange requires stocks to rank within the top 20 percent in median daily trade for at least six months, or 75 percent of their listing period.

Deletion, on the other hand, occurs when a company falls to the 36th rank or lower by market capitalization, making room for higher-ranked eligible stocks.

Analysts said the upcoming review was shaping up to be one of the tightest in recent cycles, with minimal gaps separating the at-risk constituents.

This dynamic underscores how shifts in market sentiment, liquidity and price performance could decisively influence index composition in the coming months. INQ