KUALA LUMPUR: Westports Holdings Bhd could replace Sime Darby Bhd in the upcoming review of the FTSE Bursa Malaysia KLCI (FBM KLCI) as its market capitalisation (market cap) ranking has risen to 24th among eligible securities, surpassing the eligibility threshold of the 25th largest.
The next FBM KLCI review outcome announcement is scheduled for Dec 4, and will be based on closing share prices on Nov 24. Any changes to index constituents will take effect on Dec 22.
CIMB Securities noted that based on closing market data as of July 10, Westports has risen to 24th position in market cap among eligible Main Market securities.
“The company could potentially be added to the KLCI in the next review, provided it retains a ranking of 25th or higher among eligible securities as of Nov 24, the cut-off date.
“Currently, the market cap gap between Westports and Nestlé Malaysia (the 26th-ranked eligible security) stands at 6.3%. If Westports is added, we believe Sime Darby, which currently has the lowest market cap among existing KLCI constituents, could be removed to make room,“ it said in a research note today.
CIMB Securities noted that in addition to meeting the market cap requirement, securities must have a free float of at least 15% and pass a liquidity screening test to qualify for inclusion in the FBM KLCI.
Port operator MMC Port Holdings Bhd has reportedly moved closer to what could be Malaysia’s largest initial public offering in 13 years, following the submission of a draft prospectus to the Securities Commission, as published on the regulator’s website.
According to the FTSE Bursa Malaysia Index Series Ground Rules, a newly listed company may qualify for inclusion in the FBM KLCI if its full market cap is at least 2% of the total market cap of the FBM Emas Index, based on the closing price on its first trading day.
“If this condition is met, the stock will be added to the KLCI at the close of its fifth trading day. As of Jul 10 2025, the FBM Emas Index market cap stands at RM1,626.6 billion, implying that an IPO with a market cap of at least RM32.53 billion would meet the fast-entry threshold,“ said CIMB Securities.
It added that potential changes in the FBM KLCI could spur increased interest in stocks likely to be included, driven by passive fund inflows, while stocks at risk of exclusion may face selling pressure.
The FTSE and Bursa Malaysia are scheduled to release the preliminary results of the FBM KLCI review on Dec 3, via a technical notice, one day ahead of the official announcement on Dec 4.
Since the last review, YTL Corporation Bhd, YTL Power International Bhd and Axiata Group Bhd have recorded the largest increases in market cap among FBM KLCI constituents. Conversely, Sime Darby, PPB Group Bhd and RHB Bank Bhd have registered the most significant declines.
As of June 30, the financial services sector accounted for the largest weighting in the FBM KLCI at 41.1%, followed by the utilities sector at 17.6% and the telecommunications sector at 9.8%. – Bernama
