SUCH is the projection of RHB Research ahead of the FBM KLCI component stocks semi-annual review that will be announced on Dec 5 based on ranking by market capitalisation at the close of business on Nov 25 (changes to take effect on Dec 23).

Referring to the latest market cap rankings of eligible stocks, the research house expects Gamuda Bhd which is currently ranked 20th to be added to the FBM KLCI component stock list while 99 Speedmart Retail Holdings Bhd  (in 27th spot) is “RM2 bil away from admission”.

“The two lowest ranked composite index stocks, Genting Malaysia Bhd and Genting Bhd are at risk of being excluded,” opined head of research Alexander Chia in a market strategy note.

According to the ground rules of the FTSE Bursa Malaysia Index Series, a security would be deleted if its market cap ranking among eligible securities drops to 36th or lower.

On the contrary, a security would be inserted into the FBM KLCI at the periodic review if its ranking by full market value rises to 25th or higher.

“Based on the latest market cap rankings, Gamuda will be added into the list of component stocks by virtue of its 20th place ranking while 99 Speedmart which is now ranked 27^th is in contention with RM2 bil of market cap separating it from 25th place,” observed Chia.

“With all things being equal, 99 Speedmart could make the cut if its share price rises to RM2.50.”

Chia also delved on the reserve list which comprises stocks that would be used if one or more FBM KLCI constituents are deleted from the benchmark index during the upcoming semi-annual review until the next exercise in June 2025.

“We expect the revised FBM KLCI reserve list comprising the five highest-ranking eligible non-constituents of the index by market capitalisation to be 99 Speedmart (if it fails to reach No. 25), Malaysia Airports Holdings Bhd (AmBank), AMMB Holdings Bhd, Westports Holdings Bhd and Genting Malaysia (also Genting if 99 Speedmart makes it into the composite index component stock list).”

For the record, Sunway Bhd replaced AmBank which was omitted from the list of FBM KLCI component stocks during the June 2024 semi-annual review. – Nov 6, 2024

https://focusmalaysia.my/genting-genting-msia-risk-exit-from-fbm-klci-gamuda-and-99-speedmart-may-gain-entry/