BCorp joins MSCI Malaysia Index, IGB and KLCC Property drop off

KUALA LUMPUR: Berjaya Corp Bhd (BCorp) has been included into MSCI Malaysia Index while two property stocks, IGB Corp Bhd and KLCC Property Holdings Bhd (KLCCP), have been removed from the index — a benchmark for foreign fund managers in terms of portfolio allocation.

Fund managers reckon the reorganisation of the MSCI Malaysia Index, which forms part of the MSCI Global Standard Indices, was possibly due to stock liquidity and trading volume of the counters.

“BCorp shares were included, possibly, due to the stock’s high liquidity and trading volume,” a fund manager told The Edge Financial Daily yesterday, adding vice versa for IGB and KLCC Property.

The average trading volume of BCorp in the period from May last year to yesterday was at 4.18 million shares, IGB 1.58 million shares and KLCC 639,549 shares.  

The estimated free float of BCorp shares is about 31.5%, IGB 45% while KLCCP 28.4%.

The MSCI equities barometers are maintained by MSCI Inc, formerly, known as Morgan Stanley Capital International.

The removal of IGB and KLCC Property and inclusion of BCorp came amid a worldwide reorganisation of the MSCI Global Standard Indices, which include individual stock gauges for various countries.

The share price of IGB and KLCC Property fell yesterday after they were removed from the MSCI Malaysia Index, comprising 40 of the big capitalisation companies.

IGB shares fell as much as three sen or 1.7% to RM1.74 in intraday trade before finishing at RM1.75, down two sen with 4.44 million shares done. The stock has declined 12.5% so far this year, underperforming the FTSE Bursa Malaysia KLCI that has gained 5.6% and MSCI Malaysia Index, which is up 4.1%.

Goldis Bhd is the single largest shareholder in IGB holding a 26.95% stake, followed by the Employees Provident Fund (EPF) with 10.14%.

Meanwhile, shares of KLCC Property fell as much as five sen or 1.5% to RM3.22 during the day. It finished at RM3.25, losing two sen from a day earlier with 912,400 units transacted. The stock has fallen 5.52% since the beginning of the year.

KLCC Holdings Sdn Bhd, the largest shareholder of KLCC Property, owns a 31.73% stake followed by Petroliam Nasional Bhd, and EPF with 20.86% and 12.41% respectively.

Trading of BCorp shares was, however, suspended yesterday pending an announcement of an acquisition from a related entity, and a fund-raising exercise.

The stock closed at RM1.54 on Monday. BCorp shares had gained 20.12% so far this year.

Tycoon Tan Sri Vincent Tan Chee Yioun is the single largest shareholder in BCorp with a 22.09% stake, followed by Hotel Resort Enterprise Sdn Bhd, and investment bank The Goldman Sachs Group Inc with 16.02% and 11.68% respectively.

Within the Asia-Pacific, the MSCI Australia Index, for example, added Macarthur Coal Ltd and at the same time removed Nufarm Ltd. The gauge for China equities, meanwhile, saw the inclusion of three entities — China Shineway Pharmaceutical Group Ltd, Lee & Man Paper Manufacturing Ltd and Longfor Properties Co Ltd

The index also removed two companies — Harbin Power Equipment Co Ltd and Shanghai Zhenhua Heavy Industries Co Ltd.

This article appeared in The Edge Financial Daily, May 13, 2010.
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