Manila Bulletin
Mon Jan 02,2006
The Philippine Stock Exchange will start using a new industry classification for listed firms starting January 2, 2006 to make it easier for stock market investors to track down their Philippine stocks.
PSE president Francis Lim said the reclassification is part of efforts to elevate the PSE’s operations to world-class standards.
"The move will align the PSE stock grouping with classification standards being followed by other leading stock exchanges all over the world," he said.
Lim added that "with the new classification, investors and portfolio managers, especially the foreigners, can more easily target particular industries they want to watch without much adjustment in their templates, because the new classifications are attuned with global standards."
The new industry classification uses a different basis in identifying the appropriate industry category of a listed company with reference to the Philippine Standard Industry Classification.
It includes two new groupings, called the holding firms and services sectors, while retaining the financial, property and the combined mining and oil sectors.
The new classification also simplifies the tag for the old commercial — industrial (C-I) sector by renaming it industrial sector.
Many firms affected by the regrouping, which come from the old C-I sector, now make up the bulk of the new service sector.
Under the PSE’s old system, a listed company was classified, depending on what has been stated as primary purpose in the firm’s incorporation papers.
Under the PSE’s new industry classification system, a listed company is categorized, according to where the company gets the bulk of its revenues.
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