On August 24, 2016, the Philippine Stock Exchange announced the changes in PSEi as part of its regular index review effective September 12, 2016.
PSEi represents the cream of the crop out of the companies listed in the local bourse. Companies comprising the index are considered as blue chips.
To qualify for the PSEi, the below criteria is observed:
- Free float level of at least 12%
- Must be among the 25% by median daily value per month 9 out of 12 months
- Top 30 based on full market capitalization.
On August 23, 2016, the day prior the announcement, SECB closed at P213.20 while it closed at P246.80 on September 9, a day before the effectivity of the changes. This represents a 15.76% increase over the period for SECB compared to the -4.45% of the PSEi.
When you read the disclosure, there is a section called the “reserved list”. Who knows? Maybe one of them gets lucky enough to be like SECB next time around.
FULL PSE DISCLOSURE ON THIS LINK