THE Philippine Stock Exchange (PSE) has overhauled its index management policy, introducing new liquidity tests, a market capitalization screen, and revised public float rules for companies seeking inclusion in its benchmark indices beginning with the February 2027 rebalancing, according to BusinessWorld.
The updated framework replaces the 2011 policy and adds a market capitalization floor for index constituents, along with stricter liquidity requirements designed to ensure that only actively traded stocks remain in the benchmarks. The PSE also tightened the public float rule, raising the minimum threshold for the percentage of shares held by the public, though the exact figures were not disclosed in the initial report.
Market participants expect the changes to improve the representativeness and tradability of PSE indices, potentially leading to periodic rebalancing that could shift sector weightings. The PSE stated the new rules aim to align the exchange with international best practices and enhance the attractiveness of Philippine equities to foreign investors.