BUSINESS

INARI MAY REPLACE HAP SENG AS KLCI CONSTITUENT -- CGS-CIMB

17/11/2021 01:55 PM

KUALA LUMPUR, Nov 17 -- Inari Amertron Bhd may replace Hap Seng Consolidated as a constituent in the FTSE Bursa Malaysia KLCI (FBM KLCI) index for an upcoming review as the latter has failed to meet the liquidity criteria.

According to CGS-CIMB Securities Sdn Bhd, this would represent the first time a technology company is represented in the FBM KLCI index and this could lead to the re-rating of Inari, one of its top three stock picks.

FTSE Russell is due to announce the results of its upcoming semi-annual review of the FTSE Bursa Malaysia Index Series on Dec 2, and the changes will be effective on Dec 20. 

“In our assessment of market data, we found that Hap Seng is unlikely to meet the liquidity criteria as it is unlikely to meet the median daily trade per month of more than 0.04 per cent for eight out of 12 months,” the research house said in its strategy note published on Tuesday.

Nevertheless, it said the analysis suggested that Hap Seng had only met this criterion in six out of the past 11 months. “As such, it could be removed from the FBM KLCI index in the upcoming review, and be replaced by the highest market cap ranking company that is presently not included in the index as of Nov 22, 2021.”

CGS-CIMB views Inari as the frontrunner to be included in the KLCI index in the next review as it is the highest market ranking company among the non-KLCI constituents with a market cap of RM15.1 billion, followed by Westports, whose market cap is four per cent lower at RM14.5 billion.

Among the KLCI constituents, Top Glove, Hartalega, and Sime Darby Plantations have posted the largest declines in market capitalisation since the last KLCI review date on Nov 23, 2020, the research house noted.

The biggest three gainers among KLCI constituents since the last KLCI review date on Nov 23, 2020 were IHH Healthcare, CIMB, and Genting Malaysia.

The banking sector had the largest weightage on the KLCI index at 35.3 per cent, followed by the telecommunications sector at 11.7 per cent, and the food and beverage sector at 11.6 per cent as of Oct 29.

As of 12.30 noon, Inari was four sen higher at RM4.14 with 16.15 million shares transacted.

-- BERNAMA


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy