WebClick Tracer

November 28, 2023

Union Bank removed from PSEi and other indices due to free float compliance issues

Union Bank of the Philippines (UnionBank/UBP) is set to be removed from the Philippine Stock Exchange (PSE) indices, including the PSEi, PSE Dividend Yield (PSE DivY), and Financials indices, effective October 4, 2023.

The decision stems from a downward adjustment to UBP’s free float, rendering it non-compliant with the 20 percent minimum free float requirement for index inclusion.

The PSE clarified that this adjustment was made following an evaluation, which reclassified a portion of UBP’s shares from public to non-public, aligning with PSE Policy on Index Management guidelines.

The reclassification includes Social Security System-owned shares in UnionBank, previously considered public but now classified as non-public due to the institution’s presence on the bank’s board of directors.

Despite this change, UBP continues to exceed the 10 percent minimum public ownership requirement for continued listing.

Nickel Asia Corporation is set to replace UnionBank in the PSEi. These developments follow the removal of Metro Pacific Investments Corporation and Aboitiz Power Corporation from the PSEi due to falling public floats.