Malaysia Strategy - Shariah compliant list, May 2015

Author: kltrader   |   Publish date: Fri, 29 May 2015, 12:03 PM 

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• 19 new additions, 13 deletions from updated Shariah list.
• Takes the total number of Shariah compliant stocks to 674, representing 75% of stocks listedon Bursa Securities.
• Key additions: Bumi Armada, Malakoff, SapuraKencana. Key deletion: IOI Corporation.

What’s New
The Securities Commission (SC) has released its updated list of Shariah compliant stocks effective 29May and there are a total of 19 additions and 13 deletions to the list.
There are now a total of 674 Shariah compliant stocks, representing 75% of the 903 stocks listed on Bursa Securities.
What’s Our View
The key additions in terms of market cap would be Bumi Armada, Malakoff and SapuraKencana while the key deletionis IOI Corporation.
The addition of SapuraKencana and the removal of IOI Corp have been well flagged, but we would still expect somevolatility in the share prices of these stocks today. Meanwhile,while Bumi Armada had met the SC’s shariah requirements as at end-Dec 2014, there was uncertainty as to the timing of its re-inclusion back into the Shariah list.
There is a net addition of about MYR9.5b in market capitalization to the Shariah list, given thatthe stocks added account for about MYR40.3b versus the deletion of about MYR30.8b, with IOI Corporation alone.
Source: Maybank Research - 29 May 2015