Philippines' Stock Exchange to Kickoff New Industry Classification System in 2006

Philippine listed companies will be aligned based on where it get bulk of revenues beginning 2006, following the path taken by leading and bigger stock markets worldwide.

The introduction of a new classification standard, according to Philippine Stock Exchange's President Francis Lim, is a step forward to bringing the Manila-based stock market to world-class and competitive standards.

Mr. Lim said the new system will be launched January 2, 2006 and immediately replaces the old classification system that was based on what a listed company has stated as primary purpose in its incorporation papers.

Stock traders and portfolio managers, especially foreigners can easily track down their Philippine stocks with the new classification system. Mr. Lim noted the system is attuned to global standards, making it easy for investors to pick their target industries without much adjustments in their templates.

Holding firms and services sectors will be introduced as two new groupings. Finacial, property and the comibined mining and oil sectors are retained in the new industry classification.

Industrial sector is the simplified classification for the old commercial - industrial (C-I) 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.

The Philippines' stock market is considered one of the best performing stock exchanges in Asia.