On Friday, after a slight delay, the PSE index rebalancing confirmed DigiPlus Interactive’s (PLUS) inclusion, while tycoon Enrique Razon Jr.’s Bloomberry was dropped.
“There was a lot of talk that PLUS would not make it, but ultimately the PSE rightly decided to keep to the letter of its index rules since it was clear that PLUS met the requirements as of the last review period. The decision ensures index policy predictability and stability,” Juan Paolo Colet, managing director at China Bank Capital, said in a text message to InsiderPH.
“This finally puts to rest the intense speculation on whether the country’s largest online gaming company would be added to the benchmark index,” he added.
“It was a widely anticipated result, and I’m glad we can finally put the suspense behind us,” Alfred Benjamin R. Garcia, research head at AP Securities, told InsiderPH.
“It’s a welcome development that the PSE chose to abide by their own rules rather than allowing political noise or public opinion to influence their decision,” he added.
Speculation was intense that PLUS, the country’s largest online gambling firm and the face of the booming e-games sector, might be dropped from the race even after the review period had concluded and the company had complied with all requirements.
While an unprecedented snub would have set a risky precedent, DigiPlus had also rattled the market, plunging as much as 80 percent from its recent high in a matter of weeks.
Some experts pointed to the PSE index rules on stability—a provision that has never been tested before.
Weeks earlier, a PSE insider acknowledged that the stability rule could be considered but maintained that the exchange would place weight on its established index criteria.
Rumors intensified after the index announcement, which was expected early this week, was delayed as senators lined up hearings on online gaming.
PLUS shares surged nearly 8 percent to P26.90 each on Friday before the PSE released the index rebalancing results. It’s still trading well below its recent high of P65.30 each as the industry braces for new regulations on the fast-growing sector.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
