Supermax rebounds as investors weigh KLCI inclusion news

Supermax rebounds as investors weigh KLCI inclusion news
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KUALA LUMPUR (Dec 8): Supermax Corp Bhd’s share price rose more than 4% to surpass RM8 in morning trade on Bursa Malaysia today after falling in recent days and as investors weighed the outlook of the rubber glove manufacturer following FTSE Russell and Bursa’s announcement last Thursday that Supermax will be added into the FBM KLCI.

The change in the 30-stock KLCI will take effect on Dec 21, according to a joint statement by FTSE Russell and Bursa.

At 9.13am today,  Supermax’s share price was 32 sen or 4.16% higher at RM8.02.

The counter saw some two million shares traded. At RM8.02, it had a market capitalisation of about RM21.09 billion.

Last Thursday, FTSE Russell and Bursa said Supermax will be added into the KLCI following the semi-annual review of the FBM Index Series on that day. 

Meanwhile, KLCCP Stapled Group will be removed from the KLCI, FTSE Russell and Bursa said in the joint statement.

Supermax's share price down recently before rising this morning

Supermax closed lower in recent days as investors took profit following a sharp rise in its share price over the past six months. The stock closed lower at RM8.11 last Friday and RM7.70 yesterday before rising in morning trade today as investors evaluated the significance of the stock’s planned inclusion in the KLCI.

“This (Supermax’s inclusion in the KLCI) comes following the sharp rise in Supermax’s share price over the past six months,” CGS-CIMB Securities Sdn Bhd analysts Ivy Ng Lee Fang and Nagulan Ravi wrote in a note yesterday.

"The changes in the KLCI index constituents are in line with our preview note on this event. This review is closely followed as it could have an impact on KLCI index-linked products and/or funds.

"We anticipate some rejigging by fund managers given the changes in the KLCI,” they said.