Index rebalances, AREIT, CBC join list

Two new firms, AREIT Inc. and China Banking Corp. (CBC) join the 30-company PSE index (PSEi) as a result of the January to December 2024 index review, according to stock market operator Philippine Stock Exchange Inc. (PSE).

AREIT will be a first-time member of the PSE index (PSEi) since its August 2020 stock market debut, while CBC found its way back to the main index since its first inclusion from May 2010 to May 2011.

“It is notable that our very first listed REIT has also become the first REIT 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,” PSE president and CEO Ramon Monzon said.

REITs are companies that own or finance real estate assets. All the changes in the indices take effect on 3 February 2025.

Nickel Asia, Wilcon out

The companies will replace Nickel Asia Corporation and Wilcon Depot Inc. which will become constituents of the PSE MidCap index.

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

The PSE Dividend Yield index will see the addition of Robinsons Land Corporation and the removal of International Container Terminal Services Inc.

All sector indices will remain unchanged except for the Industrial sector, with the inclusion of Pryce Corporation and the exclusion of Fruitas Holdings Inc.

The PSE Midcap and PSE Dividend Yield indices have two and four REIT constituents, respectively.

A listed firm must be among the top companies in terms of liquidity and market capitalization to qualify for inclusion in the indices. It should also maintain a free float level of at least 20 percent of its outstanding shares. Relevant financial criteria are likewise considered by the PSE in evaluating the index composition.