A HIVE OF ACTIVITY EXPECTED ON BURSA
KUALA LUMPUR: Investors can expect a significant increase in trading activities on Bursa Malaysia tomorrow.
MIDF Research said two key events will have an impact on trading behaviour that day.
They are the MSCI Equity Indexes November 2017 review (or rebalancing exercise) and the resumption of trading of the demerged Sime Darby Bhd.
MIDF Research said MSCI Inc is set to release the semi-annual index review for all MSCI Equity Indexes.
The changes to the constituents in MSCI Global Standard Index and MSCI Global Small Cap Index will be effective as of tomorrow’s close of trading day.
A total of 14 stocks across the two indexes are involved in the rebalancing exercise.
The affected stocks include Nestle (M) Bhd, Press Metal Bhd, SP Setia Bhd, Eco World International Bhd, George Kent (M) Bhd, Petron Malaysia Bhd and Media Prima Bhd.
The firm said the MSCI rebalancing exercises had in the past resulted in significant higher trading activities in volume and value.
“The need for fund managers, especially the exchange-traded funds which benchmarked MSCI indices, to replicate the index constituents while minimising the tracking errors would result in significant trading activities on the rebalancing day.
“We expect volume and value traded to be higher this week as evidenced by the previous rebalancing exercises in May and November last year and May this year,” it said.
MIDF Research said the trading of Sime Darby shares was suspended from Monday to today in view of its split from Sime Darby Plantation Bhd and Sime Darby Property Bhd.
The reference price for Sime Darby Plantation is RM5.59. This is followed by Sime Darby Property at RM1.50 and Sime Darby at RM1.85.
“On November 30, Sime Darby
pure-play strategy will be completed with all three companies to be traded on Bursa Malaysia.”
MIDF Research said the FTSE Bursa Malaysia KLCI will have 32 members at the start of trading tomorrow, before the two lowestranked companies by market capitalisation are removed from the index at the close of trading day.
The two companies will be demoted to the FTSE Bursa Malaysia Mid 70 Index.