AMMB might become index constituent stock again

PETALING JAYA: AMMB Holdings Bhd could become an FBM KLCI constituent again in June by replacing Hong Leong Financial Group Bhd (HLFG), following the semi-annual review of the index.

CIMB Securities, in a report, stated that AMMB, which was removed from the 30-stock index in June last year following a similar exercise, has met all three criteria for inclusion – market capitalisation ranking, a minimum free float of 15% and liquidity screening.

“As of May 5, AMMB was the highest- ranking non-FBM KLCI constituent by market capitalisation.

“Our checks also confirm that AMMB has met the other two criteria for inclusion: It has a minimum free float of at least 15% and has satisfied the liquidity requirement, with a monthly median trading velocity of at least 0.05% in the past 11 months (June 2024 till April 2025),” the research house stated in a strategy report.

FTSE and Bursa Malaysia will announce the preliminary results of the FBM KLCI semi-annual review in early June with changes to the constituents taking effect on June 23.

CIMB Securities added that HLFG could potentially fail the liquidity screening test, which requires a monthly median trading velocity of at least 0.04% in eight out of the past 12 months. HLFG’s weightage in the index was 0.7% as at end December 2024.

Normally, when an existing FBM KLCI constituent is removed from the index, it will be replaced by the highest ranking non-constituent company based on market capitalisation.

Since the last review in November last year, YTL Power International Bhd, PETRONAS Dagangan Bhd and YTL Corp Bhd had recorded the largest increase in market value among the index constituents, according to CIMB Securities.