Maynilad Water Services Inc. to Join PSEi, Replacing Converge ICT Solutions Inc.

MANILA, Philippines — Converge ICT Solutions Inc. will exit the Philippine Stock Exchange Index (PSEi), making way for newly listed Maynilad Water Services Inc. in the latest review of the country’s benchmark stock gauge. In a memorandum issued on Monday, the local bourse said Maynilad would replace Converge in the 30-member PSEi following its regular review of the PSEi, PSE Dividend Yield (PSE DivY), PSE MidCap and sector indices. The changes will take effect on Aug. 3. Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said the addition of Maynilad and removal of Converge from the main index was largely anticipated, so the market should not expect a volatile rebalancing of these stocks. “Investors will soon set their sights on stocks that will be impacted by the rebalancing in February 2027 when the PSE’s new index policy will take effect,” Colet said. Trading Edge chief investment strategist Ron Acoba likewise pointed out that Converge, along with DigiPlus Interactive Corp., had the smallest market cap among the PSEi constituents. The review covered trading activity from July 2025 to June 2026 and was conducted under the PSE Policy on Index Management. While Converge will leave the benchmark index, it will remain part of the PSE MidCap Index, joining Philex Mining Corp. as new constituents. Asia United Bank, meanwhile, will be removed from the MidCap index. The review also brought changes to several sector indices. For the PSE Dividend Yield Index, Aboitiz Equity Ventures Inc. was added. In the Financials Index, Bank of Commerce and National Reinsurance Corp. of the Philippines were included. The Industrial Index saw the biggest reshuffle, with Basic Energy Corp., Maynilad and Top Line Business Development Corp. joining. They replaced Concepcion Industrial Corp., Pryce Corp. and Vitarich Corp. Meanwhile, Lopez Holdings Corp. was added to the Holding Firms Index. The Property Index excluded Vista Land & Lifescapes Inc. and VREIT Inc. The Services Index also shrank, with AllDay Marts Inc. and AllHome Corp. both removed. In the Mining and Oil Index, The Philodrill Corp. was added. The latest review follows the revision of the Policy on Index Management, which will take effect at the 2027 rebalancing cycle. Under the current review, the exchange applied the existing methodology to assess the eligibility of companies based on trading activity during the 12-month review period.