The bluest of the blue-chip stocks have further solidified their presence in the Philippine Stock Exchange Index with the unexpected departure of three companies outside the regular cycle.
The PSE removed Metro Pacific Investments (MPI) as it successfully completed its privatization through a tender offer.
Aboitiz Power (AP) was excluded due to its failure to maintain the minimum 20 percent public ownership required for Index inclusion.
Additionally, Union Bank of the Philippines (UBP) did not meet the free float criteria, as the PSE did not consider the Social Security System’s (SSS) stake in the bank as part of the public float.
In their places, Bloomberry Resorts replaced MPI, Century Pacific Foods took over from AP, and Nickel Asia stepped in for UBP.
Given that the new additions did not entirely compensate for the weight of the replaced stocks, the additional weighting was distributed among six heavyweights in the index.
The biggest beneficiaries were three Sy family-owned stocks, which collectively gained approximately four percent in index weighting – SM Investments (14.37 percent), SM Prime Holdings (9.59 percent), BDO Unibank (9.15 percent).
The Ayala family’s stocks also expanded their presence in the index: Bank of The Philippine Islands (8.19 percent), Ayala Land Inc. (5.91 percent), and Ayala Corp. (5.8 percent).
Ultra bilyonaryo Ricky Razon’s International Container Terminal Services Inc. (6.33) also experienced a boost from these off-cycle adjustments.
These stocks are anticipated to gain from their increased weights as more investments flow in through index funds and exchange-traded funds (ETFs) that mimic the PSE’s composition and weighting.
These stocks are poised to benefit from increased weights, attracting more investments through index funds and exchange-traded funds (ETFs) that replicate the composition and weighting of the PSE.