Press Metal, Hartalega may be included into FBM KLCI, says CIMB IB Research

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KUALA LUMPUR (Nov 22): Press Metal Aluminium Holdings Bhd and Hartalega Holdings Bhd may have qualified for inclusion into the FBM KLCI constituents list when FTSE Russell reveals the outcome of its semi-annual review on KLCI constituents on Nov 30, according to CIMB IB Research.

In a strategy note Nov 21, the research house said British American Tobacco (M) Bhd and IJM Corp Bhd will most likely be deleted from KLCI to make way for the new inclusions.

“SD Plantations will most likely be included in KLCI post the demerger of Sime Darby; Sime Darby Properties and Sime Darby may not make the cut,” it said.

CIMB Research maintained its FBM  KLCI index target of 1,790 points for 2017F and 1,920 points 2018F.

It said the KLCI review will use data from Nov 20’s closing.

The research house said the reserve list for the FBM KLCI, which represents the top five highest ranking potential constituents not included in the index, will be used for selection for inclusion into the FBM KLCI should one or more constituents are deleted.

“Based on Nov 20’s closing, companies that could qualify for the new reserve list are Malaysia Airports Holdings Bhd, Dialog Group Bhd, Gamuda Bhd, AirAsia Bhd and IOI Properties Group Bhd,” it said.