=MARKET BUZZ: Telekom Malaysia Near 7-Yr Low; Potential Exclusion From KLCI Drags
KUALA LUMPUR (Oct 18) -- Telekom Malaysia down 2.3% at MYR2.50, near seven year low amid speculations that stock will be eliminated from KLCI index, comprising Malaysia’s 30 biggest stocks. Company now ranks at 35 in terms of market capitalization. “We expect to see selling pressure on the company ahead of the KLCI review, given about 10% foreign shareholding”, trader at private fund says; views Top Glove likely to replace stock as market cap now 28th biggest among Malaysia stocks. Notes, market cap used for KLCI review will be as at Nov. 26; outcome likely to be known by Dec 6. “If the market cap positioning remains unchanged till Nov. 26, 2018, our hypothetical analysis reveals that Telekom Malaysia could be deleted from the FBM KLCI index,” CIMB Investment Bank analyst Ivy Ng says. Top Glove Corp. now up 0.3% at MYR11.54.
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