CEO Morning Brief

MIDF Sees Sunway In, AMMB Out in Semi-annual Review of FBM KLCI

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Publish date: Wed, 29 May 2024, 10:44 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (May 28): MIDF Research said Sunway Bhd (KL:SUNWAY) is a likely new entrant to the FBM KLCI list in the semi-annual review after rising to the 23rd spot, while AMMB Holdings Bhd (KL:AMBANK) is likely to be removed.

In a strategy note on Tuesday, the research house said there would be slight changes to the reserve list, with the removal of Inari Amertron Bhd (KL:INARI) and Westports Holdings Bhd (KL:WESTPORT), and the addition of AMMB Holdings and IOI Properties Group Bhd (KL:IOIPG).

It said financial services sector weightage is expected to decline to 39.1% (from 40.8%), while the industrial sector weightage will grow to 7.8% (from 6.5%).

MIDF said AMMB will likely be removed, being the lowest-ranking constituent as at Monday’s close, with a market capitalisation of RM14.12 billion, ranking it at 34th, dropping one spot from April 30.

The research house said all the top 40 shares met the free float requirement of more than 15%, according to its estimates.

MIDF said the way liquidity is observed as per the ground rules of the FTSE Bursa Malaysia Index Series is via the median trading volume each month, where there must be a minimum of five trading days, with a monthly turnover of at least 0.05% (0.04% for existing constituents) of issued shares after adjusting for free float for at least 10 out of 12 months (eight out of 12 months for existing constituents).

“Out of the top 40 stocks, only KLCCP Stapled Group (KL:KLCC) and Chin Hin Group Bhd (KL:CHINHIN) did not meet the liquidity requirements,” it said.

Source: TheEdge - 29 May 2024

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