Frederick Dy’s Security Bank out? Consunji’s Semirara Mining hits 4-year high amid speculation of index comeback

As if red-hot coal prices are not enough, Semirara Mining and Power Corp. (SCC) of bilyonaryo Sid Consunji is getting a boost from speculation that it will return to the Philippine Stock Exchange Index after a two-year hiatus.

SCC zoomed 2.49 percent to P37.10 on July 5, its highest in four years. It was the day’s second-most active stock with P349 million in total trade with P15 million in net foreing buying.

SCC is now 74 percent up from the start of 2022 largely due to a surge in coal prices brought about by the disruption in supply due to the raging Ukraine-Russia conflict.

But investors have pumped up SCC’s price higher in the last few days due to speculation on SCC’s imminent return to the PSEI.

COL Financial senior equity strategist Adrian Alexander Yu said SCC was likely to be included in the rebalancing of the PSEI next month after its market cap swelled to P111.8 billion or No. 25 in the ranking, just below Metro Pacific (P111.9 billion) and ahead of Puregold (P109.88 billion).SCC was ejected from the index in August 2020.

Yu said SCC would likely replace Security Bank (SECB) of bilyonaryo Frederick Dy which has dropped to No. 36 in terms of market capitalization.

The only possible spoiler to SCC’s index comeback is the Abotiz-led Union Bank of the Philippines (UBP) which has a bigger market cap than SCC but a lower liquidity (a listed stock must rank top 25 percent of median daily value per month for nine months out of 12) than the Consunji energy firm.

“Nevertheless, should the PSE decide to add UBP, SCC won’t be included,” said Yu.

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