'FGVH, IHH likely FBM KLCI candidates'
Felda Global Ventures Bhd and IHH Healthcare Bhd are the most promising candidates for inclusion in the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) during the index's next
revision in December 2012, says an economist.
RAM Holdings Bhd group chief economist Dr Yeah Kim Leng said the two companies' initial public offerings (IPO) are among the largest in the region this year.
The special position held by the stocks will further strengthen the weightage of the FBM KLCI, which is widely used by investors as the primary benchmark for the Malaysian market, and forms the basis for a wide range of investment products positions.
"The two IPOs have placed our country on the global industry map. Many small and medium enterprises are looking forward for large and good quality companies to be listed, which will encourage further participation.
"For them to be placed in the top 30 index is only a matter of time, because of their size and performance," he told reporters on the sidelines of the 2012 CFO Summit Malaysia organised by the Association of Chartered Certified Accountants here today.
The FBM KLCI index series is reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee. Among the companies currently in the list are Maybank Bhd, Sime Darby Bhd, CIMB Bhd, Petronas Chemicals Bhd and Maxis Bhd.
The FTSE Bursa Malaysia KLCI reserve list comprises the five highest ranking non-constituents of the index by market capitalisation -- SapuraKencana Petroleum Bhd, SP Setia Bhd, IJM Corporation Bhd, Genting Plantations Bhd and Gamuda Bhd.
Yeah said being constituents of the FBM KLCI gives IHH and FGV many advantages, feeding the appetite of international investors keen for stocks listed in the index.
"The inclusion is expected to be slightly sooner than later. These are the future candidates. Thus Bursa Malaysia will not be short of candidates to fill in the FMB KLCI," he said.
Felda Global Ventures, the world's third largest oil palm operator, was listed on June 28, 2012, with an impressive debut on Bursa Malaysia at RM5.39, chalking up a premium of 84 sen over its offer price of RM4.55.
IHH, which has a global network operating 4,900 beds in 30 hospitals and over 24,000 employees worldwide, is expected to be simultaneously listed on Bursa Malaysia and the Main Board of Singapore Exchange Securities Trading Ltd on July 25.
Upon listing, IHH will have a market capitalisation of RM23 billion, making it one of the largest listed private healthcare providers in the world. -- Bernama
2bz4money: Kalu masih miliki syer IHH & FGV yg dijangka masuk FBM KLCI, mudahlah kita nak agak pergerakan pasaran saham semasa; iaitu jika FGV jatuh, Indeks pun dijangka jatuh dan begitulah sebaliknya..