KUALA LUMPUR: AirAsia Bhd and Bumi Armada Bhd will replace Gamuda Bhd and MISC Bhd in the FTSE Bursa Malaysia KLCI, following the semi-annual review approved by the FTSE Bursa Malaysia Index Advisory Committee yesterday.
Bursa Malaysia Bhd and FTSE Group in a joint statement yesterday added that PLUS Expressways Bhd will be removed from the KLCI due to its suspension and delisting, and be replaced by UEM Land Holdings Bhd, the highest ranking stock in the KLCI reserve list at the close of business on Dec 8. This change will take effect at the start of business on Dec 13.
The KLCI reserve list, comprising the five highest ranking non-constituents of the index by market capitalisation, were UEM Land Holdings, IJM Corp Bhd, S P Setia Bhd, Malaysia Airport Holdings Bhd and Fraser & Neave Holdings Bhd.
Companies in the reserve list will replace constituents that become ineligible as a result of corporate actions before the next review.
Changes were also made to the FTSE Bursa Malaysia Mid 70 Index (FBM 70) and FTSE Bursa Malaysia Hijrah Syariah Index (FBM Hijrah).
All constituent changes take effect at the start of business on Dec 19 and the next review will take place on June 7, 2012.
This review saw the FTSE Bursa Malaysia Index Series experience a higher turnover than in previous reviews. This was due to the implementation of a new and enhanced liquidity rule.
The new rule is based on the median of the daily turnover of a stock (expressed as a percentage of its shares in issue and adjusted for its free float weighting) over the course of a month. The old rule was based on the total turnover for a month (expressed as a percentage of shares in issue and adjusted for free float weighting).
The new rule is in line with the FTSE Global Equity Index Series which further aligns it to global standards while continuing to provide an accurate representation of the true investability of companies in the FTSE Bursa Malaysia Index Series.
This article appeared in The Edge Financial Daily, December 9, 2011.
Bursa Malaysia Bhd and FTSE Group in a joint statement yesterday added that PLUS Expressways Bhd will be removed from the KLCI due to its suspension and delisting, and be replaced by UEM Land Holdings Bhd, the highest ranking stock in the KLCI reserve list at the close of business on Dec 8. This change will take effect at the start of business on Dec 13.
The KLCI reserve list, comprising the five highest ranking non-constituents of the index by market capitalisation, were UEM Land Holdings, IJM Corp Bhd, S P Setia Bhd, Malaysia Airport Holdings Bhd and Fraser & Neave Holdings Bhd.
Companies in the reserve list will replace constituents that become ineligible as a result of corporate actions before the next review.
Changes were also made to the FTSE Bursa Malaysia Mid 70 Index (FBM 70) and FTSE Bursa Malaysia Hijrah Syariah Index (FBM Hijrah).
All constituent changes take effect at the start of business on Dec 19 and the next review will take place on June 7, 2012.
This review saw the FTSE Bursa Malaysia Index Series experience a higher turnover than in previous reviews. This was due to the implementation of a new and enhanced liquidity rule.
The new rule is based on the median of the daily turnover of a stock (expressed as a percentage of its shares in issue and adjusted for its free float weighting) over the course of a month. The old rule was based on the total turnover for a month (expressed as a percentage of shares in issue and adjusted for free float weighting).
The new rule is in line with the FTSE Global Equity Index Series which further aligns it to global standards while continuing to provide an accurate representation of the true investability of companies in the FTSE Bursa Malaysia Index Series.
This article appeared in The Edge Financial Daily, December 9, 2011.
