Petron rejoining 30-company PSEi
Oil refiner Petron Corp. will be reinstated in the country’s main stock benchmark Philippine Stock Exchange index (PSEi) starting Sept. 10, replacing budget carrier operator Cebu Air.
The PSE said the adjustment was based on its latest review of the 30 companies comprising the PSEi, the list of the country’s most liquid and closely watched stocks.
As of Wednesday’s close, Petron had a market capitalization of P94.5 billion compared to Cebu Air’s P41 billion.
Petron used to be in the list but was stricken off due to tight trading liquidity, brought about by the several merger and acquisition transactions it went through and which trimmed its public float to 7.5 percent.
Its public float was boosted with the sale in January of a substantial block held by its retirement fund.
Petron Corporation Employees’ Retirement Plan sold 695.3 million common shares of the company on Jan. 24 through the stock exchange for P11 per share or a total of P7.65 billion.
To be included in the PSEi, a listed company must satisfy three criteria—the free float level, liquidity and full market capitalization.
The PSE earlier adopted certain measures to enhance its index management system. One of these is the introduction of the “insertions and removals” rule.
Under this rule, a company will be included in the PSEi if it rises above the 25th position in terms of full market capitalization, to replace the company that ranks the lowest. It also provides that a company will be deleted from the PSEi if it falls below the 35th position. It will be replaced by a company in the so-called “reserve” list.
The reserve list is composed of companies ranking 31st to 35th in full market capitalization.
In the current reserve list are Lepanto Consolidated Mining “A” and “B”; Security Bank, Cebu Air, Philippine National Bank and Rizal Commercial Banking Corp. Doris C. Dumlao