KUALA LUMPUR (Dec 20): British American Tobacco (M) Bhd (BAT) fell as much as 3.6% to RM34.80 today as the stock was removed from the FBM KLCI Index Series, following a semi-annual review.

At 2:44pm, the stock was the biggest loser across Bursa Malaysia, though it had pared some losses. It was trading at RM35.18, down 92 sen or 2.55% from yesterday's close, while trading volume was thin at 112,800 shares.

In a joint statement today, FTSE Group and Bursa Malaysia said following the semi-annual review, Nestle (M) Bhd and Press Metal Aluminium Holdings Bhd will replace BAT and IJM Corp Bhd.

BAT will instead be added to the FBM Mid 70 Index, together with IJM, Gas Malaysia Bhd, Hengyuan Refining Company Bhd, Lafarge Malaysia Bhd and Lotte Chemical Titan Holding Bhd.

Earlier today, Bloomberg, quoting RHB Research analyst Soong Wei Siang, reported BAT was extending declines to 13% in four days, as investors shift from the company due to weaker outlook, along with a de-rating arising from its removal from the benchmark KLCI index.

“Investors are moving away from the stock, as they rebalance their portfolio at the end of the year. You might see further declines, as business is not too good now,” Soong reportedly said.