Petron is In, Cebu Pacific is Out... of PSEi

PSE just released the latest composition of PSEi today and I learned that Cebu Pacific was booted out of PSEi while Petron was included again.
Petron is not even included in the reserve list of PSEI before which is composed of five stocks namely Lepanto Mining, Security Bank, PNB, RCBC and Atlas. These five stocks which are next in line to be included in PSEi were abruptly overtaken by Petron during the review made for the period July 2011 to June 2012.

Petron's full market capitalzation of 94 billion pesos ranks among the heavyweights. The turning point for Petron is the compliance to the 10% minimum public float which was facilitated by the sale of PCERP shares to the public.

Atlas on the other hand was removed from the reserved list and was replaced by the recently kicked out Cebu Pacific.

Cebu Pacific's price since IPO has been on a downward spiral. Its price is 125 per share on its debut listing but it is now trading in the 60s level, a 50% loss in value!

The effect of the Cebu Pacific exclusion is felt today with 4.7% loss while Petron increased by 2.18%

Will CEB's exclusion finally break the 60s barrier moving downwards? Perhaps not this week because the RSI is too low already but next week will be a new ball game and CEB might crack under selling pressure.

Will PCOR's inclusion in the PSEi finally push the price from sideways range? I think it will because some funds called Index funds are buying virtually all companies listed in the Index.