PETALING JAYA: Telekom Malaysia Bhd and QL Resources Bhd will likely replace Malaysia Airports Holdings Bhd and AMMB Holdings Bhd on the FBM KLCI, following the upcoming semi annual review of the FTSE Bursa Malaysia Index Series on June 4, according to a note by CGS CIMB.
Based on the share prices at the end of May 22, TM rose to 24th position hence qualifying to be included into the index, while AMMB and Malaysia Airports have fallen to the 37th position and 40th position respectively which means they will be deleted from the index.
The rules specify that should a greater number of companies qualify to be deleted in an index than those that qualify to be included, then the highest ranking constituents presently not in the index that also meet the liquidity criteria, will be included.
“Based on this, our analysis reveals that QL Resources will be included in the FBM KLCI index for the first time, as our analysis suggests KLCCP does not meet the liquidity criteria,” it said.
All constituent changes in the review will take effect on June 22.
