Despite recent market challenges, certain segments of the Philippine stock market have quietly thrived, significantly outpacing the main benchmark index. Over the past two years, indexes focused on mid-sized companies and dividend-paying stocks have demonstrated remarkable resilience and growth.
Specifically, the PSE Dividend Yield index surged ahead, climbing 22.4% in the recent year and 2.37% the year prior. The PSE MidCap Index showed even stronger performance, delivering gains of 29.1% and 20.17% over the same period.
This stands in stark contrast to the broader PSEi, which experienced a decline of 7.3% in the last year, closing at 6,052.92, following a modest 1.2% gain the year before. The PSEi represents the 30 largest publicly traded companies in the Philippines and is widely considered the nation’s key market indicator.
Recent adjustments have been made to the composition of these crucial indexes, reflecting the dynamic nature of the market. These changes are designed to ensure each index accurately represents its intended segment of the Philippine economy.
Effective February 2nd, RL Commercial REIT, Inc. will be added to the prestigious PSEi, taking the place of Alliance Global Group, Inc. This shift signifies a rebalancing to capture emerging opportunities and evolving market leadership.
The PSE MidCap Index will also see changes, with Alliance Global Group, Inc. stepping in to replace RL Commercial REIT, Inc. Additionally, Apex Mining Co., Inc. will join the index, while DoubleDragon Corp. will be removed.
The PSE Dividend Yield Index is also undergoing refinement. Universal Robina Corp. will rejoin the index, and OceanaGold (Philippines), Inc. will be included as a new constituent. Keepers Holdings, Inc. and Security Bank Corp. will be removed from this dividend-focused benchmark.
These regular reviews are essential, ensuring the indexes remain accurate reflections of the market, based on established criteria. The goal is to showcase the companies best positioned to drive future growth and deliver value.
The updated PSE MidCap Index now includes a diverse range of companies, including Alliance Global Group, Apex Mining, Asia United Bank, and others, representing a broad spectrum of mid-sized businesses.
The revised PSE Dividend Yield Index features companies like AREIT, Inc., China Banking Corp., Citicore Energy REIT Corp., and others, all selected for their consistent dividend payouts and financial strength. These changes aim to provide investors with targeted exposure to income-generating opportunities.
The PSE MidCap Index specifically focuses on 20 highly liquid, mid-sized companies that fall outside the top 30 of the PSEi, offering investors a pathway to participate in the growth of emerging businesses. The Dividend Yield Index, similarly, highlights 20 liquid companies known for their strong and reliable dividend yields.
