Puregold Price Club Inc., the retail company owned by Lucio Co will replace liquor-maker Emperador Inc. in the Philippine Stock Exchange index.
According to report made by inquirer.net, this was based on the latest PSEi recomposition which will take effect on March 13 (Monday), PSE president Hans Sicat said in a memorandum on Wednesday.
As of Wednesday, Puregold (which trades under the ticker PGOLD) was valued by the stock market at around P122.78 billion while Emperador (ticker:EMP) – which is part of the Andrew Tan group of companies – was valued at P114.45 billion.
“The inclusion of PGOLD in the main index is expected to lead to an upward pressure on its share price as funds tracking the index accumulate the issue. Meanwhile, the reverse is expected for EMP,” online stock brokerage COL Financial said in a research note on Wednesday.
COL has a “buy” rating on Puregold with a fair value estimate of P51 per share and a “hold” rating on Emperador with a fair value estimate of P7.75 per share.