Higher public float pumps up SM Prime’s weight in PSE index
SM Prime Holdings Inc.’s weight on the Philippine Stock Exchange index (PSEi) – the basket of the most-traded, most liquid and well-capitalized firms in the country – has increased to 11.76% from 10.54%.
Based on the Philippine Stock Exchange (PSE) review of listed companies covering trading activity from January to December 2019, SM Prime posted the biggest jump in its public float from 32% to 36%.
Public float refers to the amount of shares held by public shareholders and not including the shares that are held by the officers or directors of the company.
Similarly, the index weights of JG Summit Holdings Inc. and Universal Robina Corp. are seen to increase to 5.75% and 4.11%, respectively.
To qualify for inclusion in the PSEi, a listed firm should be among the top companies in terms of liquidity and market capitalization. A listed company should also have a free float level of at least 15 percent of its outstanding shares.
PSE conducts an index composition review twice a year using the methodology and criteria identified in its index management policy. Index-related data such as free float and index weights are available on a subscription basis.