KUALA LUMPUR (Nov 26): CGS-CIMB Research said based on its assessment, the KLCI constituents are likely to remain status quo post the FTSE semi-annual review on Dec 5.

In a strategy note Nov 25, CGS-CIMB’s Ivy Ng Lee Fang said the ratio of underperformers in the 3Q19 results season so far has remained high at 44.1% (2Q19: 40%).

“Based on share prices as at the end trading on Nov 25, we have found that none of the companies currently included as a KLCI constituent have fallen to the 36th position or below, which would require them to be removed from the KLCI.

“Also, we found none of the non-KLCI constituents have risen to the 25th or higher in market cap ranking which would qualify them for inclusion

“This, coupled with external uncertainties, are likely to cap any possible market upside. We maintain our KLCI target of 1,583 points for end-2019,” she said.