MANILA, PHILIPPINES — November 12, 2026 | WWC ONE MEDIA | Philippine Business, Stock Market, Foreign Investments and Corporate Finance
The Philippine stock market has suffered another alarming setback on the international investment stage after global index provider MSCI announced the removal of two of the country’s most recognizable corporate giants — Manila Electric Company (Meralco) and PLDT Inc. — from its Philippine Standard Index.
The decision will leave just seven Philippine stocks in the benchmark, down from 11 at the beginning of 2026, marking a staggering 36.4% reduction in the number of constituents in less than a year.
And the latest exclusions could have implications far beyond the companies directly affected.
International investment funds use MSCI benchmarks to determine which securities qualify for their portfolios. When companies are removed, passive funds tracking those indexes may need to sell shares, potentially intensifying trading pressure and reducing exposure to the affected stocks.
According to Bilyonaryo’s November 12 report, Meralco and PLDT will be deleted after the close of trading on November 30, with the revised index composition taking effect on December 1.
Their removal follows Jollibee Foods Corporation’s exclusion in May and Ayala Land’s deletion in August.
No Philippine company has been added to replace any of the four businesses removed during 2026.
The shrinking roster raises an uncomfortable question about the future of the country’s financial markets.
If some of the Philippines’ biggest and most established corporations can no longer maintain their place in a major international equity benchmark, what does that mean for the country’s ability to attract global investment?
Four Major Philippine Companies Lose MSCI Standard Index Membership
The latest MSCI review completes a difficult year for Philippine blue-chip representation.
At the beginning of 2026, the MSCI Philippines Standard Index contained 11 companies.
The number subsequently declined as several prominent businesses were removed.
Jollibee Foods Corporation, one of Asia’s largest restaurant operators, was deleted in May.
Ayala Land, the property development arm of the Zobel-controlled Ayala Group, followed in August.
Now Meralco and PLDT are joining the list.
The four exclusions are particularly significant because the companies operate in major areas of the Philippine economy: food services, property development, electricity distribution and telecommunications.
Their removal does not mean they are disappearing from the Philippine Stock Exchange or facing imminent financial collapse.
MSCI membership depends on factors including free-float-adjusted market capitalization, liquidity and investability.
A company can remain commercially important while no longer meeting the requirements of a particular index.
Nevertheless, the rapid decline in Philippine constituents reflects a broader challenge for the country’s equity market.
International investors need sufficiently large, liquid and accessible companies in which to deploy capital.
When fewer Philippine stocks qualify, the country’s representation in benchmark-driven portfolios becomes increasingly concentrated.
Meralco and PLDT Lose Their Places — But There Is an Important Difference
Meralco, led by businessman Manuel V. Pangilinan’s group, is the country’s dominant private electricity distributor.
PLDT, also associated with Pangilinan, is one of the Philippines’ largest telecommunications companies.
Both businesses occupy strategically important positions in the national economy.
Yet MSCI has determined that they will no longer remain in its Philippine large- and mid-cap benchmark following the November review.
For Meralco, the exclusion ends its current membership in the Standard Index.
For PLDT, the situation is different.
PLDT will be transferred to the MSCI Philippines Small Cap Index, alongside fellow telecommunications operator Globe Telecom.
That means PLDT is not being removed from every MSCI benchmark.
Instead, it is being reclassified into a different segment of MSCI’s equity universe.
This distinction matters for international investors.
A fund tracking the Standard Index may need to reduce its PLDT holdings.
But a fund tracking the relevant small-cap benchmark could potentially acquire or retain exposure.
The net impact will depend on the sizes and holdings of the affected funds.
Neither the index reclassification nor the resulting portfolio adjustments automatically establish that PLDT’s underlying telecommunications business has weakened.
Only Seven Philippine Blue Chips Will Remain
After the November 30 changes take effect, the MSCI Philippines Standard Index is expected to contain these seven companies:
| Company | Stock symbol |
|---|---|
| International Container Terminal Services Inc. | ICT |
| BDO Unibank Inc. | BDO |
| SM Prime Holdings Inc. | SMPH |
| Bank of the Philippine Islands | BPI |
| Ayala Corporation | AC |
| SM Investments Corporation | SM |
| Metropolitan Bank & Trust Company | MBT |
The list reveals a striking concentration among a small number of business groups and sectors.
Three major banks — BDO, BPI and Metrobank — will remain.
The SM Group will retain two constituents through SM Investments and SM Prime Holdings.
Ayala Corporation and ICTSI complete the roster.
Together, these companies represent much of the Philippines’ remaining exposure in the Standard Index.
But major sectors such as telecommunications and electricity distribution will no longer be directly represented through PLDT and Meralco.
That absence is significant for a benchmark intended to represent the country’s large- and mid-cap investment universe.
It does not mean those sectors have become economically irrelevant.
Instead, it highlights the distinction between the importance of a company to the domestic economy and its eligibility under international index rules.
ICTSI Dominates the Index as Concentration Risks Grow
One of the most striking features of MSCI’s Philippine benchmark is the enormous weight of Enrique Razon-led International Container Terminal Services Inc.
According to MSCI’s October 30 factsheet, ICTSI represented approximately 42.16% of the index before the latest announced deletions.
BDO Unibank followed with 14.02%.
SM Prime Holdings accounted for 8.53%, while BPI had an 8.48% weight.
PLDT represented 4.44%, and Meralco accounted for approximately 4%.
These figures describe the index before the November rebalancing.
The final weights of the seven surviving companies will be recalculated following the announced changes.
Nevertheless, ICTSI’s pre-review weight shows how concentrated the Philippine benchmark had already become.
When a small number of companies dominate an index, their share-price movements can have an outsized effect on benchmark returns.
This creates challenges for investors seeking diversified exposure to an economy.
A benchmark with fewer stocks may also offer a narrower range of industries and business models.
For the Philippines, developing more large, liquid and publicly accessible companies would help broaden the investment universe.
Philippines’ MSCI Weight Has Fallen to Around 0.3% of Asia ex-Japan
The country’s declining representation is not a new concern.
In August, Abacus Securities warned that the Philippines’ weight in the MSCI Asia ex-Japan Index had fallen to approximately 0.3%.
A decade earlier, the corresponding share was close to 3%.
That suggests the Philippines’ regional index representation has contracted dramatically over time.
The figures also highlight the gap between the Philippines and several Southeast Asian neighbors.
According to Abacus’ August assessment, Singapore represented approximately 3.7% of the regional benchmark, Malaysia 1.7%, Indonesia 1.1% and Thailand 0.8%.
The comparisons are dated August 2026, rather than updated post-November figures.
Still, they demonstrate the scale of the challenge facing Philippine equities.
Global investment funds have numerous opportunities across Asia.
Markets with larger listed companies, greater trading volumes and higher levels of foreign participation may attract more benchmark-linked capital.
The Philippines must compete for that investment.
And shrinking representation makes that competition more difficult.
Could MSCI’s Decision Trigger Foreign Selling?
One of the most immediate concerns is the potential impact on foreign investment flows.
Passive funds tracking MSCI benchmarks generally adjust their portfolios when constituents are added or deleted.
The removal of Meralco and PLDT may therefore create additional selling pressure as the implementation date approaches.
However, it would be inaccurate to claim that billions of dollars have already left the Philippines because of these two deletions.
No independently verified estimate of the specific amount of forced selling attributable to the November exclusions was established in the reports reviewed.
The actual impact will depend on the number of shares held by benchmark-tracking funds, the liquidity of the affected stocks and how other investors respond.
Some investors may have adjusted their positions before the formal announcement.
Active fund managers may also continue owning Meralco or PLDT despite their removal from the Standard Index.
The bigger long-term risk concerns visibility.
As the number of Philippine stocks included in widely followed international benchmarks declines, international fund managers may have fewer opportunities to build large, benchmark-driven positions in the local market.
That could reinforce existing liquidity challenges.
Strong Company Earnings Do Not Guarantee MSCI Inclusion
One of the most important lessons from the latest review is that operating performance and index membership are not the same thing.
BDO Unibank, for example, remains one of the seven surviving MSCI constituents.
The bank reported approximately ₱63.6 billion in net income during the first nine months of 2026, supported by an expanding loan portfolio.
As WWC ONE MEDIA reported in its analysis of BDO’s ₱63.6-billion profit and ₱4.1-trillion loan portfolio, profitability and business expansion can diverge from investors’ expectations about earnings growth.
Conversely, companies removed from MSCI may continue reporting profitable operations.
Ayala Land remains a major property developer, while Jollibee continues operating an extensive international restaurant business.
Meralco and PLDT also remain important infrastructure and service providers.
An index deletion is not a corporate credit rating, an insolvency determination or a forecast of business failure.
MSCI’s eligibility rules measure characteristics relevant to its benchmarks, including market size and liquidity.
That distinction is essential when interpreting the latest exclusions.
Philippine Property Stocks Face Increasing International Scrutiny
The earlier removal of Ayala Land and the latest small-cap index changes point to challenges in the local property sector.
Ayala Land’s exclusion came in August.
Megaworld Corporation is also scheduled for removal from the MSCI Philippines Small Cap Index during the November review.
These developments coincide with a challenging period for Philippine property companies.
Developers have faced weaker condominium demand, financing pressures and changing commercial property conditions.
However, not every company has experienced the same financial performance.
Its financial performance demonstrates why stock-market eligibility should not be confused with the operating condition of an entire business.
Similarly, WWC ONE MEDIA examined Ayala Land’s ₱67-billion home sales and an 18% decline in profit, highlighting the mixed financial conditions facing major developers.
For international investors, the challenge is determining which companies offer attractive valuations, sustainable earnings and sufficient trading liquidity.
Those considerations remain relevant regardless of whether a particular stock belongs to an MSCI benchmark.
DigiPlus, Megaworld and Semirara Also Face Small-Cap Index Deletions
The November MSCI review also affects three companies outside the Standard Index.
Bilyonaryo reports that DigiPlus Interactive Corporation, Megaworld Corporation and Semirara Mining and Power Corporation will be removed from the MSCI Philippines Small Cap Index.
These are separate deletions from the Standard Index changes involving Meralco and PLDT.
The removals could affect funds tracking small-cap benchmarks.
But they do not automatically mean the companies will be delisted from the Philippine Stock Exchange.
Nor do they establish that the affected businesses are financially distressed.
Index exclusions can reflect market-capitalization changes, trading liquidity and other eligibility considerations.
Investors therefore need to distinguish the technical effect of rebalancing from the companies’ underlying financial performance.
Indonesia’s MSCI Troubles Show This Is a Regional Concern
The Philippines is not the only Southeast Asian country experiencing uncertainty surrounding MSCI benchmarks.
Indonesia has also faced significant market pressure following concerns about ownership transparency, shareholding concentration and suspected coordinated trading.
MSCI is considering whether Indonesia should retain its emerging-market classification.
That review remains pending, with a final decision expected in 2027.
The circumstances differ from those in the Philippines.
Indonesia’s classification review involves specific questions about market transparency and investability.
The Philippine changes concern the removal of individual companies from a large- and mid-cap benchmark.
Nevertheless, both cases demonstrate the influence global index providers have over international investment allocations.
As WWC ONE MEDIA reported in its coverage of Indonesia’s stock-market decline and the potential $5.6-billion passive outflow risk, index-related concerns can intensify investor uncertainty and influence trading behavior.
For regional policymakers, these developments highlight the importance of market depth, transparency, liquidity and confidence.
Can the Philippines Rebuild Its Global Stock Market Presence?
Reversing the decline will require more than improving individual share prices.
The Philippine equity market needs a larger pool of companies meeting international standards for size, free float and trading liquidity.
Encouraging additional public listings could expand investor choice.
Increasing public share ownership could make existing companies more accessible.
Improved corporate governance and predictable regulation could also strengthen investor confidence.
But there is no guarantee that these measures will produce immediate MSCI additions.
Index eligibility depends on specific quantitative requirements and how Philippine companies compare with those in other markets.
The country must therefore address both domestic market challenges and international competitiveness.
The next MSCI reviews will provide opportunities to measure whether Philippine representation begins recovering.
For now, the direction has been negative.
What Happens Next for Meralco, PLDT and Philippine Investors?
The immediate date to watch is November 30.
Following the trading close, MSCI’s announced deletions are scheduled to take effect.
Investors will be monitoring whether Meralco and PLDT experience unusual trading volume as funds rebalance their portfolios.
The transfer of PLDT into the small-cap benchmark will also be important.
Meanwhile, the seven remaining companies may receive revised benchmark weights.
But the ultimate market response is difficult to predict.
Stock prices may move before, during or after index implementation as investors adjust their expectations.
It would therefore be misleading to assume that deletion automatically guarantees a share-price decline.
The more important question is whether the Philippine market can develop enough investable companies to reverse its shrinking role in regional portfolios.
The Bigger Picture: The Philippines Is Losing Ground in the Global Investment Race
The removal of Meralco and PLDT represents another significant moment for the Philippine stock market.
Four companies are being deleted from MSCI’s Standard Index during 2026, with no replacements.
The roster is set to fall from 11 companies to seven.
For a country competing with larger Asian financial markets, that is a warning worth taking seriously.
The exclusions do not mean Philippine companies have suddenly lost their commercial importance.
They do not establish that a specific amount of foreign capital has already left.
And they do not prove that the country’s economy is shrinking at the same pace as the index roster.
But they reveal the difficulties Philippine equities face in attracting the liquidity, valuations and investor participation needed to remain competitive.
For Meralco and PLDT, the latest MSCI reshuffle represents a change in global benchmark status. For the Philippine market, it raises a more fundamental question about whether enough major listed companies can continue qualifying for international investment indexes.
And as the Philippines prepares to enter December with just seven stocks in MSCI’s Standard Index, could this latest blow finally push the country to rebuild its capital markets — or will international investors increasingly direct their money toward larger and more liquid Asian exchanges?
