Inclusion into KLCI index near-term positive for AMMB, says CIMB Research

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KUALA LUMPUR (Dec 7): CIMB IB Research has maintained its FBM KLCI target of 1,704 points for end-2018 and 1,674 points for end-2019 as well as its top three picks which are Dialog Group Bhd, Malaysian Pacific Industries Bhd and Westports Holdings Bhd.

In a strategy note Dec 6, the research house said Top Glove Corp Bhd and AMMB Holdings Bhd will be included in KLCI index effective Dec 24.

It said they will replace Telekom Malaysia Bhd and KLCCP Stapled Group (KLCC) which will be excluded from the index on the same date.

“We were surprised by the deletion of KLCC and addition of AMMB. This could be near-term positive for AMMB,” it said.

CIMB Research said the FTSE Bursa Malaysia KLCI reserve list companies are Westports, YTL Corp Bhd, Fraser and Neave Holdings Bhd, QL Resources Bhd and Lotte Chemical Titan Holding Bhd.

“The reserve list will be used in the event that one or more constituents are deleted from FTSE Bursa Malaysia KLCI, in accordance with the index ground rules, during the period up to the next semiannual review,” it