PSE adds AREIT, China Bank to index

MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) will welcome two members to its main board in February, kicking out a mining giant and a home retailer in the reshuffle.

The Philippine Stock Exchange Inc. (PSE) has announced the entry of AREIT Inc. and China Banking Corp. into the main board of the PSE on Feb. 3.

The companies will replace Nickel Asia Corp. and Wilcon Depot Inc., as the latter are relegated to the PSE Midcap index for mid-sized companies.

The reshuffle was a result of the PSE’s review of company performance last year.

This marks the first time that AREIT is joining the big league since its public listing in 2020, while Chinabank is a returnee following its initial inclusion between May 2010 and May 2011.

Aside from the membership switch, Philippine Seven Corp. will stand in for DDMP REIT Inc. in the 20-member midcap index.

Further, property giant Robinsons Land Corp. is entering the PSE Dividend Yield index in place of port builder International Container Terminal Services Inc.

Likewise, every industry in the PSE will remain unchanged except for industrials, as the sector is bringing in Pryce Corp. and is excluding Fruitas Holdings Inc.

PSE president and CEO Ramon Monzon is pleased that the first listed real estate investment trust (REIT) also became the first REIT to hop on the main board.

Monzon said the success achieved by AREIT exemplifies the business viability that REITs have to offer in a changing capital market environment.

“It is notable that our very first listed REIT has also become the first to make it to the PSEi. This shows the immense potential REITs have as an investment product and serves as a good example for REIT issuers that aspire to maximize this particular type of listing vehicle,” Monzon said.

Outside of the main board, Monzon noted that the PSE Midcap index includes two REITs. Apart from this, there are four REITs in the PSE Dividend Yield index, showing the progress made by REITs in spite of their youth.

A publicly listed company has to become a top performer in terms of market capitalization to be able to qualify in the indices.

The PSE also requires that the company keep a free float level of 20 percent of its outstanding shares to be able to enter any of the indices.