KUALA LUMPUR, Dec 4 — Shares in both Supermax Corporation Bhd and KLCC Stapled Group (comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust- REIT) were down as at mid-afternoon today.
At 3.05pm, Supermax dropped 32 sen to RM8.38 with more than 11 million shares traded, while KLCC Property and KLCC REIT was one sen lower at RM7.59 with 144,200 shares transacted.
Supermax will replace KLCC Property and REIT stapled securities as a constituent of the FTSE Bursa Malaysia KLCI (FBM KLCI) following the final semi-annual review of the FTSE Bursa Malaysia Index Series for 2020.
Kenanga Research said the move was expected and with the latest changes, the rubber glove sector will be represented by three constituents — Top Glove Corp Bhd, Hartalega Holdings Bhd and Supermax — making up an estimated 13.47 per cent weight based on current prices, up from 10.99 per cent previously.
It said Supermax’s entry should likely increase the FBM KLCI’s financial year 2021 earnings per share (EPS) as its earnings contribution is expected to exceed that of KLCC Stapled Group.
“After accounting for the dilutive impact of a higher divisor, we estimate the rebalancing would still potentially enhance EPS by around 2.0 per cent,” it said in a note today.
Following the review, KLCC Property and REIT stapled securities would be placed on the FBM KLCI reserve list and added to the FTSE Bursa Malaysia Mid 70 Index.
All constituent changes are to take effect at the start of trading on December 21 (Monday) based on price closings on December 18 (Friday). — Bernama