HOME improvement retailer MR DIY Group (M) Bhd has been elevated as a FBM KLCI component stock barely eight months since it debuted on the Main Market of Bursa Malaysia on Oct 26 as Malaysia’s largest initial public offering (IPO) exercise for 2020.
The company which replaced glove maker Supermax Corp Bhd on the benchmark index following the FTSE Russell’s semi-annual review has seen its share price rising sharply from its IPO price of RM1.60 to a 52-week high of RM4.38.
“All constituent changes will be applied after the close of business on June 18 and will be effective June 21,” shared CGS-CIMB Research head Ivy Ng Lee Fang.
“This review is closely followed as it could have an impact on the FBM KLCI index-linked products and/or funds.”
Meanwhile, it is not all lost for Supermax as the Big-Four glove maker will join D&O Green Technologies Bhd, Greatech Technology Bhd, UMW Holdings Bhd and Hong Leong Industries Bhd in the FTSE Bursa Malaysia Mid 70 index (FBM70) following the latest review.
These companies will be replacing MR DIY, Datasonic Group Bhd, Ekovest Bhd, KLCC Stapled Group and IOI Properties Group Bhd in that index.
Moreover, Supermax and Inari Amerton Bhd will also replace MR DIY and KLCC Stapled Group’s in the FBM KLCI reserve list alongside Westports Holdings Bhd, Kossan Rubber Industries Bhd and QL Resources Bhd which retain their spots in the list.
The reserve list will be used in the event that one or more constituents are deleted from the FBM KLCI in accordance with the index ground rules during the period leading up to the next semi-annual review.
“We anticipate some re-jigging by fund managers given the changes in the FBM KLCI, the FBM70 and FBM Hijrah Shariah lists, thus benefitting MR DIY, Press Metal Aluminium Holdings Bhd (entry into the FBM Hijrah Shariah Index), D&O Green Technologies, Greatech, UMW Holdings and Hong Leong Industries,” CGS-CIMB Research pointed out.
“(On the contrary, this poses) potential selling pressure on Supermax, Datasonic, Ekovest, KLCC Stapled Group, IOI Properties Group and Yinson Holdings Bhd.”
All-in-all, the research house reiterated its FBM KLCI target of 1,709 Points for end-2021F with its top three picks being Inari Amerton, Public Bank Bhd and Telekom Malaysia Bhd. – June 4, 2021
