KUALA LUMPUR: Petronas Dagangan Bhd, Maxis Bhd and CelcomDigi Bhd have experienced the largest declines in market capitalisation among Bursa Malaysia's 30 largest stocks since the last benchmark index FBM KLCI review date of Nov 23 last year.
As of April 30 this year, the three biggest gainers among FBM KLCI constituents year-to-date were YTL Corp Bhd, YTL Power International Bhd and Tenaga Nasional Bhd, according to CIMB Securities.
As of the period, YTL's market surged 136.9 per cent to RM40.78 billion from RM17.21 billion on Nov 23 last year, YTL Power soared 111.2 per cent to RM40.38 billion from RM19.12 billion, and TNB jumped 32.6 per cent to RM76.51 billion from RM57.7 billion.
On the converse, Petronas Dagangan shrank 12.8 per cent to RM19.83 billion from RM22.75 billion previously, Maxis shed 10.2 per cent to RM28.9 billion from RM32.19 billion and CelcomDigi lost 5.1 per cent to RM47.86 billion from RM50.44 billion previously.
"As at April 30, the banking sector had the largest weightage on the FBM KLCI index at 40.4 per cent, followed by the utilities sector at 16.0 per cent, and the telecommunications sector at 10.7 per cent," CIMB Securities noted.
FTSE Russell and Bursa Malaysia will announce the preliminary results of the FBM KLCI index review on Wednesday (June 5) through a technical notice, a day before the official publication date of the final review of the index on June 6.
Based on CIMB Securities' analysis, Sunway Bhd could replace AMMB Holdings Bhd (AmBank Group) in the upcoming review.
Based on market data on May 27, which is the review date for the index, Sunway's market capitalisation had risen to the 23rd position among eligible securities while AmBank ranked the lowest.
"According to the ground rules, a security can gain entry into the FBM KLCI if it rises to the 25th position or higher. Therefore, our analysis suggests that Sunway could potentially be added to the index constituents after the June 2024 review.
"Should Sunway be added, we believe that AMMB, which currently has the lowest market capitalisation among the KLCI constituents, could be removed from the FBM KLCI index to make room for Sunway," CIMB Securities noted in a recent report.
Apart from the market capitalisation criteria, companies must have a free float (share capital of the company that is freely available for trading) of 15 per cent or more, and pass a liquidity screening test to qualify for inclusion in the FBM KLCI.
The firm estimates that Sunway could have a potential FBM KLCI weightage of 1.6 per cent against AMMB's current weightage of 2.2 per cent.
"Sunway could attract investors' interests due to its potential inclusions while AMMB, which we currently have a Buy call, could see some selling pressure during re-balancing," the firm said.