KUALA LUMPUR: CIMB Securities Sdn Bhd has indicated that Gamuda Bhd may replace Genting Malaysia Bhd in the FTSE Bursa Malaysia KLCI (FBM KLCI) in the index's upcoming review next month.

In a note today, CIMB Securities stated that the results of the semi-annual review of the FBM KLCI component stocks are scheduled for Dec 5, with the closing share price data from Nov 25 being utilised.

CIMB Securities said that it conducted a preliminary analysis based on share prices as of Nov 5.

"Our findings indicate that Gamuda could replace Genting Malaysia in the FBM KLCI as Gamuda's market capitalisation (market cap) has climbed to 18th position among eligible securities, surpassing the eligibility threshold of 25th position," it said.

Currently, Gamuda's market capitalisation is noted to be 19 per cent higher than that of PPB Group Bhd, which ranks 26th.

"If Gamuda is added, we anticipate that Genting Malaysia, which currently holds the lowest market capitalisation among KLCI constituents, might be removed from the index," said CIMIB Securities.

At this stage, CIMB Securities estimates that Gamuda could secure a 4.2 per cent weightage in the KLCI, compared with Genting Malaysia's current weightage of 1.5 per cent. 

As of Sept 30, 2024, the banking sector held the largest share of the KLCI's weight at 41.2 per cent, followed by the utilities sector at 17.6 per cent and the telecommunications sector at 9.8 per cent.

The FTSE and Bursa Malaysia are expected to release preliminary and final review results from Dec 4 to Dec 5, with any adjustments to the index constituents taking effect on Dec 23.

At 5 pm, Gamuda closed at RM8.95, rose 26 sen from yesterday's close with 5.32 million shares traded.

 -BERNAMA