KUALA LUMPUR (Sept 17): Mini-market chain operator 99 Speed Mart Retail Holdings Bhd’s (KL:99SMART) potential inclusion in the FBM KLCI remains far from certain, even as its market capitalisation now approaches the top 30.

The stock does not qualify for fast entry as a new issue into FBM Index series based on current rules, MIDF flagged in a note. Shares of 99 Speed Mart will also have to climb to at least RM2.41 to make it into the list by the review cut-off date on Nov 25, it noted.

As the 33rd largest stock in terms of market cap at its last price of RM1.88, 99 Speed Mart is likely to be included in the reserve list in the upcoming review, MIDF said.

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The semi-annual review of the country’s benchmark index FTSE Bursa Malaysia KLCI is scheduled to be implemented on Dec 23, based on data from the review cut-off date.

The FBM Index Series, including the KLCI, allows for fast entry inclusion for a large newly listed stock, if its market cap amounts to 2% or more of the full market cap of the FBM EMAS Index. At its IPO price of RM1.65, 99 Speed Mart’s market cap was only 0.8% of the entire FBM Emas.

IHH Healthcare Bhd (KL:IHH) was the last company to join the KLCI as a newly listed stock in August 2012.

For now, Gamuda Bhd (KL:GAMUDA) may finally make it into the KLCI after staying in the reserve list for two years, MIDF said. As long as the stock remains at least at the 25th spot by the cut-off date, an inclusion “is rather certain” as Gamuda meets both the free float and liquidity requirements, the house said.

That would mean Genting Malaysia Bhd (KL:GENM) may be removed from the index, MIDF warned. 

https://www.theedgemarkets.com/node/726902