How Does the Philippine Stock Exchange Select which Companies to Include in the PSEi Index?
The PSE has a Policy on Index Management which forms as the basis for selecting the 30 stocks to include in the PSEi index. To simplify, eligibility is based on Free Float Level and Liquidity and the final index list is based on the top thirty in market capitalization. Of course, there are more details defined as to the exact rules in creating the index based on the documented policy in order to achieve the purpose of creating a benchmark that measures the performance of the Philippine Stock Market. If you want to know more, get a copy of the Policy on Index Management.
The PSE has a Policy on Index Management which forms as the basis for selecting the 30 stocks to include in the PSEi index. To simplify, eligibility is based on Free Float Level and Liquidity and the final index list is based on the top thirty in market capitalization. Of course, there are more details defined as to the exact rules in creating the index based on the documented policy in order to achieve the purpose of creating a benchmark that measures the performance of the Philippine Stock Market. If you want to know more, get a copy of the Policy on Index Management.
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