THE Philippine Stock Exchange Inc. (PSE) announced a shake-up in its benchmark index, with two firms joining the 30-company Philippine Stock Exchange Index (PSEi).
AREIT, Inc. and China Banking Corp. will take the spots previously held by Nickel Asia Corp. and Wilcon Depot Inc.
AREIT, a pioneering real estate investment trust (REIT) that debuted in August 2020, will join the PSEi for the first time. Meanwhile, China Bank makes its return to the main index after over a decade, with its previous inclusion spanning May 2010 to May 2011.
Nickel Asia and Wilcon Depot will shift to the PSE MidCap index, where another significant change will see Philippine Seven Corp. replacing DDMP REIT Inc. in the 20-member benchmark.
In the PSE Dividend Yield index, Robinsons Land Corp. will be added, while International Container Terminal Services Inc. will be removed. Sector indices remain largely unchanged, except for the industrial sector, which welcomes Pryce Corp. while Fruitas Holdings Inc. exits.
“It is notable that our very first listed REIT has also become the first REIT to make it to the PSEi. This shows the immense potential REITs have as an investment product and serves as a good example for REIT issuers that aspire to maximize this particular type of listing vehicle,” PSE president and chief executive officer Ramon Monzon said in a statement.
The reshuffle reinforces the growing prominence of REITs in the market. The PSE MidCap and Dividend Yield indices now include two and four REIT constituents, respectively.
To qualify for PSE indices, companies must meet stringent criteria, including high liquidity, market capitalization rankings, and a free float level of at least 20 percent of outstanding shares. Financial metrics also play a role in the evaluation. All changes to the indices will take effect on Feb. 3, 2025. / KOC