Global casino operator Genting Malaysia Bhd and its parent Genting Bhd have been removed from the 30-stock FTSE Bursa Malaysia’s Kuala Lumpur Composite Index (KLCI), according to a Thursday announcement.
The latest semi-annual review of the KLCI was based on the companies’ market capitalisation data at the close of trading on November 25.
The FTSE Bursa Malaysia KLCI comprises the largest 30 companies listed on the bourse’s main board by full market capitalisation.
“All constituent changes take effect on Monday, 23 December 2024. The next review will take place in June 2025,” said the joint announcement by Bursa Malaysia and its index partner, FTSE International Ltd, trading as FTSE Russell.
Bursa Malaysia said the KLCI was “widely used by investors as the primary benchmark for the Malaysian capital market”.
“The benchmark index is also tracked by several index-linked financial products, such as exchange-traded funds,” it added.
FTSE Russell is a provider of stock market indices and associated data services, wholly owned by the London Stock Exchange Group Holdings Ltd.
As of Thursday, Genting Malaysia was ranked 37th in the list of the largest companies on Bursa Malaysa, while its parent was in the 34th spot, based on their respective market capitalisation.
The share prices of both companies reached their lowest levels this week since November 2020, according to data from the Malaysian bourse. Year-to-date, the share prices of both companies have declined by more than 21 percent.
Replacing the two Genting group-linked stocks in the index are engineering company Gamuda Bhd and retailer 99 Speed Mart Retail Holdings Bhd.
In late November, Maybank Investment Bank Bhd revised downward its estimates for Genting Malaysia’s earnings following the company’s third-quarter results.
