The Philippine stock exchange has recently announced the official latest list of Blue chip Stocks starting August 8, 2022. Biannual results from the review included newly listed Semirara Mining Corporation while Security Bank was delisted.
What are Blue chip Stocks
Blue chip stocks are so called best companies in the Philippine market today. They have been selected by the Philippine Stock Exchange to represent the best companies in the country. They are the stocks that represent the Philippine Stock Exchange Index or PSEI.
How do they Select Blue chip stocks to Represent PSEI
We have a previous article here explaining the minimum requirements for the selection criteria. Also before the announcement of Semirara Mining Corporation inclusion on the index, we made a youtube vlog review. Final results have been confirm before August 8 based on the latest Security and Exchange commission announcement.
Selection includes liquidity from the last 9 months of trading performance, Highest in market capitalization and a public float level of at least 15%.
Philippine Stock Exchange Announcement
Below is an excerpt from PSE management on the results of the review.
The index review from July 2021 to June 2022 showed that Semirara Mining and Power Corporation (SCC) was qualified to be a member of the 30-company PSE index (PSEi). The said security will replace Security Bank Corporation (SECB) effective August 8, 2022.
The top publicly listed companies based on liquidity, market capitalization, and free float level are the securities considered for inclusion in PSE indices. Aside from these criteria, relevant financial benchmarks are also used in the index review.
“This is the last index recomposition with a free float requirement of at least 15 percent. As announced in August 2021, companies should have a public ownership level of at least 20 percent to qualify for index inclusion in the next review period. We expect companies that would like to remain index constituents but have a free float of less than 20 percent to take the necessary corporate action to address this concern,” said PSE President and CEO Ramon S. Monzon.
The sector indices will also see minor changes, with the addition of seven securities. Rizal Commercial Banking Corporation will become a component of the Financials index while Benguet Corporation is set to be a constituent of the Mining and Oil index. The Property index will see the addition of 8990 Holdings, Inc. and DDMP REIT, Inc. (DDMPR). Phinma Corporation, Shakey’s Pizza Asia Ventures, Inc., and Synergy Grid & Development Phils., Inc. will all be part of the Industrial index.
The PSE MidCap and Dividend Yield (DivY) indices, which were launched in March 2022, will likewise see a revamp of its 20-member composition. SCC will be taken out of the PSE MidCap index following its PSEi inclusion, together with Cebu Air, Inc., DoubleDragon Corporation, and Filinvest Land, Inc. Taking their place as PSE MidCap stocks are AyalaLand Logistics Holdings Corp., DDMPR, SECB, and Union Bank of the Philippines.
The PSE DivY Index, on the other hand, will see the inclusion of the four Real Estate Investment Trusts (REITs) that debuted in 2021, namely DDMPR, Filinvest REIT Corp., MREIT, Inc. and RL Commercial REIT, Inc. Securities that will be removed from the PSE DivY are Robinsons Land Corporation, Robinsons Retail Holdings, Inc., SECB, and Universal Robina Corporation.
| Security Name | Symbol | Outstanding Shares |
|---|---|---|
| Ayala Corporation | AC | 714.5 |
| ACEN CORPORATION | ACEN | 8.52 |
| Aboitiz Equity Ventures, Inc. | AEV | 59.55 |
| Alliance Global Group, Inc. | AGI | 9.28 |
| Ayala Land, Inc. | ALI | 27.7 |
| Aboitiz Power Corporation | AP | 31.55 |
| BDO Unibank, Inc. | BDO | 114.8 |
| Bank of the Philippine Islands | BPI | 94.7 |
| Converge Information and Communications Technology Solutions, Inc. | CNVRG | 21.2 |
| Emperador Inc. | EMI | 19.04 |
| Globe Telecom, Inc. | GLO | 2,120.00 |
| GT Capital Holdings, Inc. | GTCAP | 485.4 |
| International Container Terminal Services, Inc. | ICT | 181.9 |
| Jollibee Foods Corporation | JFC | 227.2 |
| JG Summit Holdings, Inc. | JGS | 54.75 |
| LT Group, Inc. | LTG | 8.77 |
| Metropolitan Bank & Trust Company | MBT | 50.5 |
| Megaworld Corporation | MEG | 2.43 |
| Manila Electric Company | MER | 319.8 |
| Monde Nissin Corporation | MONDE | 16.14 |
| Metro Pacific Investments Corporation | MPI | 3.7 |
| Puregold Price Club, Inc. | PGOLD | 33.65 |
| Robinsons Land Corporation | RLC | 18.4 |
| Semirara Mining and Power Corporation | SCC | 40.2 |
| SM Investments Corporation | SM | 834 |
| San Miguel Corporation | SMC | 103.6 |
| SM Prime Holdings, Inc. | SMPH | 38.25 |
| PLDT Inc. | TEL | 1815 |
| Universal Robina Corporation | URC | 125.7 |
| Wilcon Depot, Inc. | WLCON | 30.4 |