Maynilad Water Replaces Converge in PSEi Benchmark

The Philippine Stock Exchange (PSE) has officially announced the removal of telecommunications giant Converge Information and Communications Technology Solutions Inc. (Converge ICT) from its benchmark PSE Index (PSEi), replacing it with newly listed Maynilad Water Services Inc. This decision, based on the bourse's regular review of its indices, will take effect on August 3, 2026. The PSEi, a key indicator of the Philippine economy, comprises 30 constituent stocks. Converge ICT, which debuted on the stock market in October 2021, will lose its position in this prestigious index. Meanwhile, the inclusion of Maynilad Water Services reflects the growing importance of infrastructure, particularly water services, in the nation's development. Reliable water infrastructure is crucial for economic growth and the improvement of citizens' quality of life, especially in densely populated urban areas. Despite its removal from the PSEi, Converge ICT will continue to be part of the PSE MidCap Index, alongside Philex Mining Corp., indicating its continued significance in the market. The review also brought several changes to sector-specific indices. Aboitiz Equity Ventures Inc. has been added to the PSE Dividend Yield Index, while Bank of Commerce and National Reinsurance Corp. of the Philippines have entered the Financials Index. In the Industrial Index, Basic Energy Corp., Maynilad Water, and Top Line Business Development Corp. were added, and Lopez Holdings Corp. joined the Holding Firms Index. The inclusion of Maynilad Water Services in the PSEi underscores the increasing investor interest in the infrastructure sector, a critical component for the Philippines' sustained economic growth. This move is likely to draw attention from both domestic and international investors looking to capitalize on opportunities in the country's infrastructure development. Information Source: Inquirer Business