PSE launches 2 new indices

PSE
PSE

THE Philippine Stock Exchange (PSE) launched the PSE MidCap Index and PSE Dividend Yield Index on Monday, March 28.

The former was designed to showcase the mid-sized companies while the latter highlights the companies that consistently give high-yielding dividends.

During the launch, PSE president and chief executive officer Ramon Monzon said that ever since, the exchange only has the main composite, All Shares and sectoral indices.

“These thematic indices are long overdue and we are pleased to finally make available the first two sets of new indices,” he said. “In developing these indices, we consulted with market participants to ensure that the selection criteria and methodology are acceptable to those who want to track or benchmark on the new indices.”

Both indices have 20 constituents and the index members as of the February 2022 recomposition stemmed from a review of companies from January to December 2021.

For inclusion in the PSE MidCap Index, a company must be listed for at least 12 months during the review period and must have a free float of at least 15 percent of its outstanding shares at the end of the 12-month period. Market capitalization, liquidity and financial performance are the other criteria considered.

The companies included in the PSE MidCap Index are AREIT Inc. (AREIT), Bloomberry Resorts Corp. (BLOOM), Cebu Air Inc. (CEB), Century Pacific Food Inc. (CNPF), Cosco Capital Inc. (COSCO), DoubleDragon Corp. (DD), DMCI Holdings Inc. (DMC), D&L Industries Inc. (DNL), Filinvest Land Inc. (FLI), GMA Network Inc. (GMA 7), AllHome Corp. (HOME), Manila Water Company Inc. (MWC), Nickel Asia Corp. (NIKL), Petron Corp. (PCOR), Philippine National Bank (PNB), Philex Mining Corp. (PX), Robinsons Retail Holdings Inc. (RRHI), Semirara Mining and Power Corp. (SCC), Pilipinas Shell Petroleum Corp. (SHLPH), and Vista Land & Lifescapes Inc. (VLL).

Meanwhile, to qualify for inclusion in PSE Dividend Yield Index, companies should have regularly issued cash dividends for the past three consecutive years. Companies must also be listed for at least 12 months during the review period and at least six months for Real Estate Investment Trusts. The free float, liquidity and financial performance of companies are also evaluated.

The companies included in the PSE Dividend Yield Index are Aboitiz Equity Ventures Inc. (AEV), Aboitiz Power Corp. (AP), AREIT, Bank of the Philippine Islands (BPI), DMC, DNL, Globe Telecom Inc. (GLO), GMA 7, International Container Terminal Services Inc. (ICT), LT Group Inc. (LTG), Metropolitan Bank & Trust Co. (MBT), Manila Electric Co. (MER), Metro Pacific Investments Corp. (MPI), Nickel Asia Corporation (NIKL), Robinsons Land Corp. (RLC), RRHI, SCC, Security Bank Corp. (SECB), PLDT Inc. (TEL), and Universal Robina Corp. (URC).

“With the launch of these two indices, we hope to see more funds created that will track these new benchmarks. We think this will also provide fund managers and investors the opportunity to diversify their portfolio,” Monzon said. (with PR)

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