THE Philippine Stock Exchange (PSE) has revised the composition of its benchmark and sector indices in its latest semiannual review, with Maynilad Water Services Inc. replacing Converge ICT Solutions Inc. in the 30-member Philippine Stock Exchange index (PSEi).
The changes, based on trading activity from July 2025 to June 2026, will take effect before the start of trading on Aug. 3.
PSE President and CEO Ramon Monzon said Maynilad became only the third company to qualify for early inclusion in the PSEi since the exchange introduced the rule in 2021.
"MYNLD's (Maynilad’s stock symbol) stellar post-IPO share price growth and the demand for its stock allowed the company to easily meet the market cap and liquidity criteria for index membership," Monzon said.
Beyond the PSEi, the exchange also announced changes across several of its other indices.
Aboitiz Equity Ventures was added to the PSE Dividend Yield Index while Converge and Philex Mining Corp. joined the PSE MidCap Index, replacing Asia United Bank Corp.
For the sector indices, Bank of Commerce and National Reinsurance Corp. of the Philippines were added to the Financials Index while Basic Energy Corp., Maynilad and Top Line Business Development Corp. entered the Industrial Index, replacing Concepcion Industrial Corp., Pryce Corp. and Vitarich Corp. (VITA).
Lopez Holdings Corp. joined the Holding Firms Index while Vista Land & Lifescapes Inc and VistaREIT Inc. were removed from the Property Index.
In the Services Index, AllDay Marts Inc. and AllHome Corp. were removed while Oriental Peninsula Resources Group Inc. was added to the Mining and Oil Index.
No changes were made to the SME Index.
The PSEi is the country's main stock market barometer, consisting of 30 listed companies selected based on market capitalization, liquidity and free-float requirements.
The exchange reviews the composition of the index twice a year to ensure it continues to represent the country's largest and most actively traded listed firms.
Manny Ocampo, president and chief operating officer of the Investment and Capital Corporation of the Philippines, said Maynilad's inclusion in the benchmark index was expected to attract buying from index-tracking funds.
"Since MYNLD will be included, expect the price to go up as funds that do not have it yet in their portfolio will buy MYNLD. The reverse is expected for CNVRG," Ocampo told The Manila Times.
Juan Paolo Colet, managing director of China Bank Capital Corp., said the latest benchmark index changes had been widely anticipated by the market.
"The addition of Maynilad and removal of Converge from the main index was largely anticipated by the market, so we don't expect a volatile rebalancing of these stocks," he said.
Colet added that investors are likely to shift their attention to the next round of index changes.
"Investors will soon set their sights on stocks that will be impacted by the rebalancing in February 2027 when the PSE's new index policy will take effect," he said.
Monzon said the July 2025 to June 2026 review still followed the PSE's existing index policy, with the revised selection criteria to be applied in the next review covering the January to December 2026 period.
"The selection process for the next review of indices, which covers the January to December 2026 period, will utilize our revised index criteria that puts premium on the liquidity of a stock," he said.
