TM and KLCC REIT dropped as constituents of Bursa


Telekom Malaysia Bhd (TM) and KLCC Real Estate Investment Trust (REIT) have been dropped as the constituents of FTSE Bursa Malaysia KLCI (FBM KLCI) and replaced by Top Glove Corp Bhd and AMMB Holdings Bhd.

The removal of TM was expected after its market capitalisation shrunk more than RM14 billion in the last 12 months. The government-linked telecommunications company reported its first quarterly loss in 10 years for the July-September 2018 period.

Top Glove and AMMB have been on a rising trajectory with better earnings results and share price. The changes follow FBM KLCI’s December semi-annual review.

Bursa Malaysia Bhd in a statement said the FBM KLCI reserve list — comprising the five highest ranking non-constituents of the index by market capitalisation — will be used in the event that one or more constituents are deleted from the FBM KLCI.

It is based on the index ground rules during the period up to the next semi-annual review.

Companies on the reserve for the main Bursa index are Westports Holdings Bhd, YTL Corp Bhd, Fraser & Neave Holdings Bhd, QL Resources Bhd and Lotte Chemical Titan Holding Bhd.

The new additions for the FBM Mid 70 Index are TM, UMW Holdings Bhd, Carlsberg Brewery Malaysia Bhd, AEON (M) Bhd, Boustead Plantations Bhd, Hibiscus Petroleum Bhd and Matrix Concepts Holdings Bhd.