KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said there would likely be no change in the 30 constituents of the FBM KLCI when the outcome of the semi-annual review.
It said on Thursday this was based on full market capitalisation data as at May 31 and was subject to free float criteria and liquidity test.
“Although SapuraKencana (market cap of RM11.1bil) was ranked the 26th largest by full market cap, it would not be inserted as a new member after narrowly missing the cut for being placed below the 25th position or higher (as required under the buffer ruling),” it said.
HDBSVR said its simulation exercise suggested that MISC (the 21st largest company with a full market cap of RM18.0bil) and Nestle (in 22nd position; full market cap of RM12.5bil) will not be eligible for inclusion in the FBM KLCI because they did not pass the liquidity test.
Separately, Felda Global Ventures Holdings (market cap of RM16.6bil based on an indicative retail price of RM4.55) - which is slated for its debut listing on June 28 - would be ranked as the 21st largest based on full market cap as at end-May.
“Still, the plantation giant is not expected to gain a fast-track entry into the FBM KLCI one day after listing as its indicative market cap would account for only 1.5% (which is below the 2% or more threshold) of total market cap of the FBM EMAS Index.
“Felda Global Ventures Holdings, nevertheless, will probably be added as a constituent during the end-November review (assuming its share price would hold up post-listing),” it said.