99 Speed Mart could join FBM KLCI if its price hits RM2.50 by Nov 25

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KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd could be a new entrant to the top 30-stock index, FBM KLCI, if the stock price hits RM2.50 a share by November 25, 2025, according to RHB Investment Bank Bhd (RHB Research).

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It said the semi-annual review of the FBM KLCI component stocks will be announced on Dec 5 and it will be based on ranking by market capitalisation at the close of business on Nov 25, 2024.

The changes is expected to take effect on Dec 23, 2024.

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RHB Research said 99 Speed Mart, in 27th place currently with a market capitalisation of about RM19 billion, is RM2 billion away from admission.

The stock which listed on Sep 9, 2024, has seen its stock price grow more than 21 per cent to RM2.28 earlier since its listing. It had an initial public offering price of RM1.65 a share.

Based on the latest market cap rankings of eligible stocks, the firm expects Gamuda Bhd, currently ranked 20th, to be added to the FBM KLCI component stock list.

“The two lowest ranked composite index stocks, Genting Malaysia Bhd and Genting Bhd, are at risk of being excluded,” it said.

RHB Research said Gamuda and 99 Speedmart – if it makes the cut – will replace the two lowest-ranked component stocks, which are currently Genting Malaysia and Genting.

Meanwhile, the reserve list comprises stocks that would be used if one or more constituents are deleted from the FTSE Bursa Malaysia KLCI during the period, until the next semi-annual review.

RHB Research expects the revised FBM KLCI reserve list to include the five highest-ranking eligible non-constituents of the index by market capitalisation. These are 99 Speedmart (if it fails to reach number 25), Malaysia Airports Holdings Bhd (MAHB), AmBank Group, Westports Holdings Bhd, and Genting Malaysia (also Genting if 99 Speedmart makes it into the composite index component stocklist).

Meanwhile, RHB Research said the near-term uncertainties arising from the US election and its impact on US and global macroeconomics are still playing out in the market.

The firm said this, coupled with geopolitical risks centred on events in the Middle East, could keep investor sentiment on edge until greater clarity emerges.

“Key investment themes include adding defensive color to portfolios to guard against near-term volatility and protect realized gains achieved year-to-date.”

“Other themes are staying nimble to build positions on broad-based market weakness and focusing on stocks with a Johor angle, along with a bottom-fishing strategy on small to mid-caps,” it said in a note today.

RHB Research has maintained an “Overweight” ratings on the banking, property, Malaysian real estate investment trust (REIT), construction, technology, healthcare, basic materials, oil & gas, utilities, and rubber product sectors.

-NewStraitsTime