KUALA LUMPUR, Oct 22 — IOI Corporation Bhd could be at risk of removal from the current top 30 blue chips of the FTSE Bursa Malaysia (FBM) KLCI as it failed three months of liquidity test, said MBSB Investment Bank Bhd.
“It is likely that the current top 30 blue chips will remain status quo for the December 2025 review, though our analysis showed that IOI Corp could be at risk of removal, as it failed three months of liquidity test.
“It may be booted out if it fails the liquidity test again in November 2025, and its vacancy will likely be taken up by Westports Holdings Bhd,” said the investment bank in its research note here today, ahead of the cut-off date at the end of next month for the upcoming semi-annual review of the FBM KLCI in December.
The bank said that, based on its estimates, IOI Corp was the only index constituent that did not meet the liquidity requirements for June (0.038 per cent), July (0.031 per cent) and August (0.036 per cent).
“FTSE’s ground rules require existing constituents to pass at least eight out of 12 months with a monthly median turnover of at least 0.040 per cent.
“Meanwhile, no existing constituents have risen or fallen to the ranking thresholds based on market capitalisation at the moment,” said MBSB Investment.
It said a security will only be inserted at a periodic review if it rises to the 25th or above, while a deletion will occur if a security falls to the 36th or below.
“Based on our estimates on the top 40 stocks as of Tuesday, all of them met the free float requirements of more than 15 per cent.
“Other than IOI Corp, three non-constituents also failed to meet the liquidity requirements, namely Hong Leong Financial Group, KLCCP Stapled Group and Fraser & Neave Holdings,” it said.
While the reserve list will largely remain the same, the bank expects Genting Malaysia to be included in the list in the upcoming review, replacing IOI Properties Group, pending further details on the timeline of the former’s proposed privatisation. — Bernama
