First Metro Securities Research, led by research head Mark Angeles, earlier released a preview of their projections.
Based on the results released on Aug. 7, four of their five calls are on track: no changes to the MSCI Philippines Standard Index, an upweight for Gokongwei-led Robinsons Retail Holdings Inc. (RRHI), and the additions of Lucio Tan's Philippine National Bank (PNB) and the Gokongwei family's RL Commercial Real Estate Investment Trust Inc. (RCR) to the Small Cap Index.
The changes take effect on Aug. 27 this year.
What’s this about?
MSCI rebalancing is when MSCI updates the list and weights of stocks in its indices based on the latest market data.
It matters because many global funds follow these indices and adjust their holdings accordingly.
What’s changing?
No changes are expected in the MSCI Philippines Standard Index, but updates in the small cap segment could impact portfolio flows.
RRHI is slated for an upweighting after its allowable foreign limit jumped to 73.5 percent following DFI Retail Group’s exit.
Upweighting means a stock will take up a larger share in the index, prompting funds that track it to buy more shares of that company.
PNB also makes the list after a 43 percent rally pushed its market cap above MSCI’s cutoff.
RCR, which rose 22 percent amid expectations of PSEi inclusion, also made the Small Cap Index.
SP New Energy Corp. (SPNEC) gained 18.4 percent during the review period, supported by news of a planned backdoor listing via MGen Renewable Energy, a subsidiary of Manila Electric Co.
The company, while among the calls of First Metro Research, met all MSCI metrics, but was ultimately not included in the final rebalance.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
