MANILA, Philippines — The Philippine Stock Exchange (PSE) has introduced two new indexes, the PSE MidCap Index and the PSE Dividend Yield Index.
PSE president and CEO Ramon Monzon said that with the launch of the two new indexes, fund managers and investors could further diversify their portfolio.
“Ever since, we only have the main composite, All Shares and sectoral indexes in the PSE. These thematic indexes are long overdue and we are pleased to finally make available the first two sets of new indexes,” he said.
The PSE MidCap Index will showcase the mid-sized companies, while the Dividend gauge will highlight companies that consistently give high-yielding dividends.
Both indexes have 20 constituents and the index members as of the February 2022 recomposition stemmed from a review of companies from January to December 2021.
The base date and base level for both indices is Dec. 30, 2010 at 1,000.
“At the launch yesterday, the PSE MidCap Index and the PSE Dividend Yield Index will have 1,195.10 and 1,708.56 as their starting levels, respectively, representing an increase of 19.5 percent and 70.9 percent from their base levels, based on the 11-year backtesting conducted by the PSE. The subsequent levels will be computed at the end of every trading day,” the PSE said.
“In developing these indexes, we consulted with market participants to ensure that the selection criteria and methodology are acceptable to those who want to track or benchmark on the new indexes,” Monzon said.
To be included in the PSE MidCap Index, a company must be listed for at least 12 months during the review period and must have a free float of at least 15 percent of its outstanding shares at the end of the 12-month period.
The PSE also takes into account market capitalization, liquidity and financial performance.
Included in the newly launched PSE Mid Cap Index are AREIT Inc., Bloomberry Resorts Corp., Cebu Air Inc., Century Pacific Food Inc., Cosco Capital Inc., DoubleDragon Corp., DMCI Holdings Inc., D&L Industries, Inc., Filinvest Land Inc., GMA Network Inc., AllHome Corp., Manila Water Company Inc., Nickel Asia Corp., Petron Corp., Philippine National Bank, Philex Mining Corp., Robinsons Retail Holdings Inc., Semirara Mining and Power Corp., Pilipinas Shell Petroleum Corp.and Vista Land & Lifescapes Inc.
The companies included in the PSE Dividend Yield Index are Aboitiz Equity Ventures Inc., Aboitiz Power Corp., AREIT Inc., Bank of the Philippine Islands, DMCI Holdings Inc., D&L Industries Inc., Globe Telecom Inc., GMA Network Inc., International Container Terminal Services Inc., Metropolitan Bank & Trust Company, Manila Electric Company, Metro Pacific Investments Corp., Nickel Asia Corp., Robinsons Land Corp., Robinsons Retail Holdings Inc., Semirara Mining and Power Corp., Security Bank Corp., PLDT Inc., Universal Robina Corp. and LT Group Inc.
Monzon said the PSE Dividend Yield Index would create a proper benchmark for existing dividend-based mutual funds and UITFs.
“Currently, the performance of these funds are compared with the PSEi because the stock market does not have a dividend index to match it to,” Monzon said.