KUALA LUMPUR, May 31 — Pay television operator Astro, banking group AMMB and construction giant, YTL Corp could be potentially removed from the FBM KLCI when the semi-annual review takes place, according to CIMB Equities Research.
These stocks have fallen to the 36th, 38th and 44th positions in the review which takes into account the market capitalisation as at May 21. This would see them being excluded as component stocks of the FBM KLCI.
CIMB Equities Research said the FTSE Bursa Malaysia index ground rules stipulate that a stock would be inserted in the FBM KLCI during the periodic review if its market cap has risen to 25th position or above among the eligible main market securities.
It added that a security would be deleted at the periodic review if it has fallen to 36th position or below among the eligible main market securities.
Hartalega Holdings and Malaysia Airports are potential inclusions in the 30-stock FBM KLCI under the upcoming semi-annual review of FTSE Bursa Malaysia Index Series.
“As at May 21, 2018, we found Dialog and Hartalega Holdings in the 24th and 25th rankings, respectively, which would qualify both companies for insertion into the KLCI index,” it said.
Based on the report, Malaysia Airports will most likely be the third stock to be included in the index following the recent review.
CIMB Equities Research said FTSE Russell is due to announce the results after the market closes today. But the changes will only take effect on June 18.
This review is closely followed by the market as it could have an impact on KLCI index-linked products like FTSE 30 Exchange Traded Funds and KLCI index-linked funds.
