The Philippine Stock Exchange (PSE) said it is including Emperador Inc. (EMP) into the PSE composite index (PSEi), replacing Semirara Mining and Power Corp.
Emperador’s inclusion takes effect on August 17, 2020, and is the result of the latest index review of trading activity in the PSE between from July 2019 and June 2020.
Based on PSE’s policy on index management, a company may be considered for inclusion in the PSEi if it has a float level of at least 15 percent, ranks among the top 25 percent by median daily value per month in nine out of 12 months and ranks among the highest in market capitalization.
The PSE may also take into account relevant financial criteria to ensure that index constituents are closely representative of the market or a particular sector.
As a result of the review, Emperador will also become a constituent of the industrial sector, apart from being a PSEi mainstay.
Waterfront Philippines Inc., meanwhile will also be removed from the services sector index.
“Meantime, there will be no changes in the composition of the financials, holding firms, property, and mining sector indices,” the PSE said.
“The semi-annual review of indices ensures that the Exchange’s benchmarks reflect the performance of the best securities in the stock market in general and its sectors,” added Ramon Monzon, PSE president.