Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 6): Top Glove Corp Bhd lost some ground again today. The world's largest glove maker's share price fell 2.89% or 13 sen to RM4.37, wiping out another RM332.78 million from its market capitalisation on concerns that it might lose its FBM KLCI constituent status.

This means the stock has lost 3.32% or 15 sen in the past two days — it slipped 2 sen on Tuesday, trimming RM51.2 million from its market cap that day, bringing the total erased market value to RM383.97 million. The downtrend has further heightened the risk of its removal from the benchmark index.

A quick check of the largest companies on Bursa Malaysia in terms of market cap shows that Top Glove is now at the 35th spot.

The FTSE Russell is expected to announce its review of the FBM KLCI late next month. Based on FTSE Russel's rules, a stock would be included as a component of the KLCI if its market capitalisation is at 25th place or above, while one will be removed if it falls to the 36th spot and below.

Among the highest-ranking non-constituents of the index by today’s market capitalisation are: Westports Holdings Bhd (28th), KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (29th), Telekom Malaysia Bhd (30th), Fraser & Neave Holdings Bhd (32nd), QL Resources Bhd (34th).

In a note on Nov 4, AllianceDBS Research Sdn Bhd analyst Quah He Wei wrote that Top Glove Corp Bhd is at risk of being removed from the FBM KLCI if the rubber glove manufacturer's share price deteriorates further.

"It (Top Glove) is currently ranked 35th by market capitalisation and will be automatically removed if it falls to 36th or below during the review.

"The semi-annual review of the (30) KLCI constituents will take place in December 2019, based on [the stocks'] closing prices on Nov 30, 2019," Quah added.

On Sept 26, Top Glove said its net profit fell 12.7% y-o-y to RM370.56 million for the full-year ended Aug 31, 201 9(FY19) versus RM424.36 million, despite a 13.8% rise in revenue to RM4.8 billion from RM4.22 billion a year ago.

Top companies based on market capitalisation as at Nov 6,2019

  Company Market Caps (RM, Bil)
1 MALAYAN BANKING BHD 97.92
2 TENAGA NASIONAL BHD 79.16
3 PUBLIC BANK BERHAD 76.87
4 PETRONAS CHEMICALS GROUP BHD 60.80
5 CIMB GROUP HOLDINGS BHD 51.75
6 IHH HEALTHCARE BHD 48.61
7 MAXIS BHD 42.39
8 AXIATA GROUP BERHAD 39.25
9 HONG LEONG BANK BERHAD 36.98
10 DIGI.COM BHD 36.62
11 MISC BHD 36.60
12 NESTLE (MALAYSIA) BERHAD 34.38
13 SIME DARBY PLANTATION BHD 34.35
14 PETRONAS GAS BHD 32.49
15 IOI CORP BHD 27.84
16 PPB GROUP BERHAD 26.00
17 HAP SENG CONSOLIDATED 24.65
18 KUALA LUMPUR KEPONG BHD 23.77
19 PETRONAS DAGANGAN BHD 23.54
20 GENTING BHD 23.18
21 RHB BANK BHD 23.10
22 HONG LEONG FINANCIAL GROUP 19.70
23 DIALOG GROUP BHD 19.34
24 PRESS METAL ALUMINIUM HOLDIN 19.18
25 GENTING MALAYSIA BHD 18.49
26 HARTALEGA HOLDINGS BHD 18.28
27 SIME DARBY BERHAD 15.51
28 WESTPORTS HOLDINGS BHD 14.66
29 KLCCP STAPLED GROUP 14.44
30 TELEKOM MALAYSIA BHD 14.20
31 MALAYSIA AIRPORTS HLDGS BHD 14.10
32 FRASER & NEAVE HOLDINGS BHD 12.95
33 AMMB HOLDINGS BHD 12.18
34 QL RESOURCES BHD 11.84
35 TOP GLOVE CORP BHD 11.19
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