Categorized | News

CEB will be replaced in PSE index





cebu-pacific-logo

At of end of trading today, August 23, 2012, CEB (Cebu Air Inc) has gone down to only 62.80/share. You might be wondering why Cebu Pacific stocks fell down fast, this was because of the news that by September 2012, CEB will be replaced by PCOR (Petron Corporation) in the PSE index (PSEi).

While CEB shares went down, PCOR shares went up and is now at 10.3/share, this is usually just a temporary decline and CEB is still a good investment in the long term.

“The current PSEi composition is a good representation of our 254 listed companies, and is also reflective of the overall positive sentiment prevailing in our market” – Hans B. Sicat, PSE President and Chief Executive Officer

About the PSE index (From: http://www.pse.com.ph/stockMarket/pressRoom-pressReleases.html?id=PSE_PRRLS20120000098)
The PSEi includes 30 stocks from the PSE listed companies that satisfy these three criteria: the free float level, liquidity, and full market capitalization.

Free float, also known as public float, refers to the portion of the outstanding shares that are freely available and tradable in the market, or those shareholdings, which are non-strategic in nature. The free float portion should represent at least 12 percent of the outstanding shares of a listed stock. It is interesting to note that the average free float level of PSEi companies is 38 percent.

In order to pass the liquidity criterion for the main index, a stock must be among the top 25 percent by median daily value turnover per month for at least nine out of 12 months.

Full market capitalization on the other hand refers to companies that pass the first two criteria and are ranked from highest to lowest based on volume-weighted average price during the review period.

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3 Responses to “CEB will be replaced in PSE index”

  1. Erich says:

    buying on a dip 🙂

Trackbacks/Pingbacks

  1. […] the news that CEB will be replaced in PSE index and an advise by Bo Sanchez to sell at a loss, I still did not sell but decided to wait for the […]

  2. […] last update on the PSEi was when CEB was replaced by PCOR last September 2012. Usually when a stock is removed from the PSEi, the stock prices go down a bit […]


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