MMHE,UEM Land may become new constituents of FBM KLCI

KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) line-up may be amended, at the mid-year semi-annual periodic review, to include Malaysia Marine and Heavy Engineering (MMHE) Bhd and UEM Land Bhd as possible new index constituents.

"Using May 31 as the cut-off date, our simulation reveals two potential new entrants — MMHE (RM12.4 billion market capitalisation) and UEM Land (RM11.4 billion market capitalisation) — in the members' list," HwangDBS Vickers Research said.

The research house said the two potential entrants may replace PLUS Expressways and Malaysia Airlines System Bhd.

"Any changes to the index composition will take effect after the market closes on June 17," it said in a note on Friday, June 3.

HwangDBs also said although both MMHE and UEM Land were the 26th and 27th largest companies by full market capitalisation, they were, however, below the 25th position and a stock must rise to this spot or above to be inserted as a new constituent under the buffer ruling.

Both MMHE and UEM Land could still gain entry into the index as a replacement may be named ahead of the PLUS's delisting, in the third quarter, and MAS, which has dropped to 51st position, may be dropped as an index constituent under the review rules, it added.

"Our current recommendations for the stocks under our coverage are PLUS (Hold; TP RM4.60) and MAS (Fully Valued; TP RM1.10)," it added. — Bernama