Tuesday, 15 November 2011

candidate members of the FBM KLCI

NESTLE (Malaysia) Bhd, AirAsia Bhd and Bumi Armada Bhd is one of the three major  candidates are included in the component stocks of the FTSE Bursa Malaysia KLCI (FBM KLCI) to replace the PLUS Expressways Bhd and Gamuda Bhd, which is likely to be issued.
The benchmark index represents the 30th largest company on Bursa Malaysia in terms of full market capitalization, as well as to meet the criteria and passed the test liquid flotation.
PLUS will be out of the list of index components making up the steps of private companies, while Gamuda likely to be excluded as it was out of the list of 35 largest companies in Malaysia in terms of market capitalization. OSK Research, in a research note said, of the three candidates, Nestle companies are almost certain to be restored to the list of members on the FBM KLCI index half-year review next month. He said, the counter is in conformity with eligibility criteria
during the last revision of the FBM KLCI following changes to the regulations in liquidity. "The company is also in reserve list, and as can be seen, Nestle is the largest company in Malaysia are not members of the FBM KLCI, "he said. OSK Research said, for a possible new candidate members of the FBM KLCI, Bumi Armada is the second largest company who are not members but not in reserve list previously, followed by AirAsia which is in the reserve list. "Thus, it is possible between the Earth and AirAsia's fleet, but we felt that AirAsia has a slight advantage there," he said. He said if Nestle and AirAsia was chosen as a new member of the FBM KLCI next month, it will increase the percentage of the users to 2.1 percent in the index compared to its current position at 1.4 percent. He said the construction sector will no longer be represented in the benchmark index. "While this news may be positive for Nestle and AirAsia, it should be noted that the membership the FBM KLCI index does not always translate into better stock price performance. "As previously observed, admission into the FBM KLCI is not necessarily favorable to the stock price either before or after it is inserted," he said. OSK Research said, it still retains its projections FBM KLCI at 1.466 points for the uncertainty is still gripping the market. "We maintain the suggestion that investors remain on the stand, such as telecommunications, consumer and health care at the moment," he said. the half-year review FBM KLCI will start 22 November and the results will be released on December 8, while changes to the index will take effect by the end of this year.

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