KUALA LUMPUR: SapuraKencana Petroleum Bhd, Malaysia’s biggest oil and gas services company, has emerged as the odds-on-favourite to be included in the FTSE Bursa Malaysia KLCI (FBM KLCI) index.
The FBM KLCI, is capitalisation-weighted stock market index, restricted to 30 of the largest companies listed on Bursa Malaysia’s Main Market.
SapuraKencana has a market capitalisation of more than RM24 billion, making it the 15th largest public-listed company in Malaysia.
“SapuraKencana may feature as a KLCI constituent stock, based on our estimates, replacing YTL Power Bhd,” the research unit of Maybank Bhd said in a report yesterday.
Maybank Research said SapuraKencana remains its top “buy” in the oil and gas (OandG) space.
“The OandG sector is one of our key overweights in Malaysia,” the research house said, adding that the inclusion of SapuraKencana in the benchmark index could help raise the OandG sector’s total weightage in the index to 11.1 per cent.
Maybank Research expects that once the annual review is concluded, the financial sector will have 33 per cent weightage and will remain as the largest sector on the KLCI.
The plantations and telco sectors’ weights could be 16.2 per cent and 16 per cent, taking on the second and third spots on the KLCI respectively.
The semi-annual review of the FBM KLCI 30 constituents will take place after the close of trading on June 21.
The contenders for a spot on the key index will be judged by the closing price of their shares, starting from today up to June 21.