How PSEi companies selected DOCX

Title	How PSEi companies selected
Author	Colleidus Khoppe
Pages	2
File Size	15.4 KB
File Type	DOCX
Total Downloads	186
Total Views	303

Summary

Description

How are the PSEi companies selected? The Philippine Stock Exchange Composite Index (PSEi), Phisix before, is a group of thirty (30) companies listed on the Philippine Stock Exchange, wisely selected to represent the general movement of stock market prices. It is the benchmark for measuring the performance of the Philippine stock market. Furthermore, the index serves as one of the indicators of the overall state of economy of Philippines. There are three (3) criteria that these companies should meet to qualify under PSEi: 1. Free Float — the stock must have a public float of at least 12%; 2. Liquidity — stock must belong to the top 25% by median daily value turnover per month for at least nine out of 12 months; and 3. Full Market Capitalization — stock should be one of the highest-ranked market capitalization (MCAP), measured by the company's stock price multiplied by the number of shares being publicly traded. In March or in September during the review period, a stock could be added to the index if it rises above the 25th position in terms of full market capitalization, replacing the company that ranks lower. The Philippine Stock Exchange conducts a rebalancing and recomposition of the PSE index twice a year — in March and in September — using several inclusion criteria. A company, meanwhile, could be removed if it falls below the 35th position in terms of full market capitalization. PSEi Composition, as of July 2016 1. Ayala Corp. (AC) 2. Aboitiz Equity Ventures (AEV) 3. Alliance Global Group Inc. (AGI) 4. Ayala Land Inc. (ALI) 5. Aboitiz Power Corp. (AP) 6. BDO Unibank (BDO) 7. Bloomberry Resorts Corp. (BLOOM)...