KUALA LUMPUR (Nov 6): Top Glove Corp Bhd lost some ground again today. The world's largest glove maker's share price fell 2.89% or 13 sen to RM4.37, wiping out another RM332.78 million from its market capitalization on concerns that it might lose its FBM KLCI constituent status.
This means the stock has lost 3.32% or 15 sen in the past two days – it slipped 2 sen on Tuesday, trimming RM51.2 million from its market cap that day, bringing the total erased market value to RM383.97 million. The downtrend has further increased the risk of its removal from the benchmark index.
A quick check of the largest companies on Bursa Malaysia in terms of market cap shows that Top Glove is now at the 35th spot.
The FTSE Russell is expected to announce its review of the FBM KLCI late next month. Based on FTSE Russel's rules, a stock would be included as a component of the KLCI if its market capitalization is at 25th place or above, while one would be removed if it falls to the 36th spot and below.
Among the highest-ranking non-constituents of today's market capitalization index are: Westports Holdings Bhd (28th), KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (29th), Telekom Malaysia Bhd (30th), Fraser & Neave Holdings Bhd (32nd), QL Resources Bhd (34th).
In a note on Nov 4, AllianceDBS Research Sdn Bhd analyst Quah He Wei wrote that Top Glove Corp Bhd is at risk of being removed from the FBM KLCI if the rubber glove manufacturer's share price deteriorates further.
"It (Top Glove) is currently ranked 35th by market capitalization and will be automatically removed if it falls to 36th or below during the review.
"The semi-annual review of the (30) KLCI constituents will take place in December 2019, based on [the stocks’] closing prices on Nov 30, 2019, "Quah added.
On September 26, Top Glove said its net profit fell 12.7% yoy to RM370.56 million for the full year ended Aug 31, 201 9 (FY19) versus RM424.36 million, despite a 13.8% rise in revenue to RM4.8 billion from RM4.22 billion a year ago.
Top companies based on market capitalization as at Nov 6,2019
|Company||Market Caps (RM, Bill)|
|1||MALAYAN BANKING BHD||97.92|
|2||TENAGA NASIONAL BHD||79.16|
|3||PUBLIC BANK BERHAD||76.87|
|4||PETRONAS CHEMICALS GROUP BHD||60.80|
|5||CIMB GROUP HOLDINGS BHD||51.75|
|6||IHH HEALTHCARE BHD||48.61|
|8||AXIATA GROUP BERHAD||39.25|
|9||HONG LEONG BANK BERHAD||36.98|
|12||NESTLE (MALAYSIA) BERHAD||34.38|
|13||SIME DARBY PLANTATION BHD||34.35|
|14||PETRONAS GAS BHD||32.49|
|15||IOI CORP BHD||27.84|
|16||PPB GROUP BERHAD||26.00|
|17||HAP SENG CONSOLIDATED||24.65|
|18||KUALA LUMPUR KEPONG BHD||23.77|
|19||PETRONAS DAGANGAN BHD||23.54|
|21||RHB BANK BHD||23.10|
|22||HONG LEONG FINANCIAL GROUP||19.70|
|23||DIALOG GROUP BHD||19.34|
|24||PRESS METAL ALUMINUM HOLDIN||19.18|
|25||GENTING MALAYSIA BHD||18.49|
|26||HARTALEGA HOLDINGS BHD||18.28|
|27||SIME DARBY BERHAD||15.51|
|28||WESTPORTS HOLDINGS BHD||14.66|
|29||KLCCP STAPLED GROUP||14.44|
|30||TELEKOM MALAYSIA BHD||14.20|
|31||MALAYSIA AIRPORTS HLDGS BHD||14.10|
|32||FRASER & NEAVE HOLDINGS BHD||12.95|
|33||AMMB HOLDINGS BHD||12.18|
|34||QL RESOURCES BHD||11.84|
|35||TOP GLOVE CORP BHD||11.19|
Top Glove at risk of being removed from KLCI – AllianceDBS