KUALA LUMPUR: IOI Properties Group Bhd
is likely to replace Sime Darby Bhd as one of FTSE Bursa Malaysia’s (FBM KLCI) 30 constituents in the upcoming semi-annual review by FTSE Russell and Bursa Malaysia, according to an analyst.
CIMB Securities Sdn Bhd analyst Ivy Ng Lee Fang said Bloomberg data as of today indicated that IOI Properties has risen to the 24th place in market capitalisation (cap) among eligible securities, supported by an 87.8 per cent share price rally since Nov 24, 2025.
"Under FBM KLCI ground rules, a stock becomes eligible for inclusion if it ranks 25th or higher by market cap, suggesting IOI Properties is poised for FBM KLCI inclusion,” she said in a note today.
According to Ng, IOI Properties’ entry would likely result in the removal of Sime Darby, currently the smallest FBM KLCI constituent by market capitalisation.
"Based on our preliminary estimates, IOI Properties would carry an index weight of about 1.05 per cent compared with Sime Darby’s current weight of 1.37 per cent," she said.
Nonetheless, she noted that this is provided that IOI Properties maintains its top 25 ranking by the May 25, 2026 cut-off date for the June index review.
FTSE Russell and Bursa Malaysia conduct FBM KLCI constituent reviews on a semi-annual basis, with the upcoming review to be based on data as at May 25, 2026, about 15 trading days from today.
The preliminary results will be announced on June 3, 2026, via a technical notice, followed by the final review publication on June 4, 2026.
All constituent changes to the benchmark index will take effect on June 22, 2026.
Touching on Hong Leong Financial Group Bhd, which currently ranks 27th by market cap, Ng said the company is unlikely to be eligible for the FBM KLCI re-entry even if it moves into the top 25, as it does not meet FTSE Russell's liquidity requirements.
"As a refresher, a non-constituent must satisfy the liquidity threshold in at least 10 out of 12 months, with a monthly median turnover of at least 0.05 per cent of shares outstanding (adjusted for investability weightings), based on median daily trading volume on a pro-rata basis since listing,” she explained. - Bernama
