Ayalas’ ACEN tipped to replace Andrew Tan’s EMP in PSE index

With bilyonaryo Andrew Tan’s Emperador (EMP) headed for the exit doors after just a year in the Philippine Stock Exchange Index (PSEi), the guessing game on its replacement stock is already on.

Abacus Securities reckons Ayalas’ AC Energy (ACEN) as the most likely to take over the expected vacancy in the 30-stock composite index in the upcoming August review.

“(EMP’s) replacement will depend on which stock has the highest market ca by the end of June, and also passes the other requirements for index membership (mainly free float and liquidity). Currently, the frontrunner for the coveted spot is ACEN which has so far largely maintained its run-up that started last October,” said Abacus.

“However, there is still a little over four months before the official announcement, and roughly three more months of trading left that will count for the market cap rankings. A lot can happen over these three months that can affect the price performance of current and potential index members,” it added.

The liquor maker joined the PSEi in August 2020 after seeing a major boost n its market cap and liquidity. Abacus said EMP has to be in the top 25 percent most liquid stocks for at least nine months to stay in the index. As of April 2021, Abacus said EMP has only met this criteria in four of the last eight months since its inclusion in the index.

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