THE Philippine Stock Exchange, Inc. (PSE) on Monday said it would remove companies from a list that determines three sectoral indices.
In a memo, the local bourse operator said it would change the composition of the industrial, property and service indices effective Feb. 17.
The industrial index, which used to be composed of 25 companies, will now account for the price movements of 23 listed stocks.
This reflects the removal of Emperador, Inc. and Ionics, Inc. from the latest list in August 2019, it said.
PHINMA Energy Corp., which used to be part of the industrial index, has been replaced by Ayala’s AC Energy Philippines, Inc. after the two companies’ acquisition deal last year.
The companies under the property index will also be cut to 18, as the PSE removes Crown Equities. Inc. from the composition.
The service index will be one company short once the changes take effect. Philippine Seven Corp. will be taken out of the list, bringing down the number to 22 companies.
The rest of the sectoral indices — financials, holding companies and mining and oil — will retain their composition next week. They will be composed of nine, 14 and seven companies, respectively.
The composition of the benchmark Philippine Stock Exchange index (PSEi) will also remain intact, PSE said.
The PSE conducts a semi-annual review of the composition of the PSEi and the six sectoral indices, which it bases on the revisions to the policy on managing the PSE Index Series.
The recent review accounted for trading activity in the January to December 2019 period.
The next adjustment will be in August, which will account for activity in the July 2019 to June 2020 period. — Denise A. Valdez