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Felda, Astro to Replace AirAsia, Malaysia Marine in KLCI

Dec. 14 (Bloomberg) -- Felda Global Ventures Holdings Bhd. and Astro Malaysia Holdings Bhd., which raised funds in two of Asia’s biggest initial public offerings this year, will join the country’s benchmark FTSE Bursa Malaysia KLCI Index from Dec. 24.

AirAsia Bhd., the region’s biggest low-cost carrier, and Malaysia Marine and Heavy Engineering Holdings Bhd., a rig builder, will make way in the half-yearly review, FTSE Group and Bursa Malaysia Bhd. said in a joint statement yesterday. The market capitalization of both companies has fallen with their share prices this year.

“There will be some selling pressure by those funds that need to do the adjustments,” Ang Kok Heng, who manages the equivalent of $425 million as chief investment officer at Phillip Capital Management Sdn., said by phone in Kuala Lumpur.

Some 115 funds with assets worth $9.1 billion use the $174 billion KLCI index as their primary benchmark, according to data compiled by Bloomberg. This excludes those that don’t disclose their holdings and private funds. Felda Global, the world’s third-biggest plantation company by hectares, debuted in June after raising $3.3 billion. Astro, the nation’s largest pay-TV operator, sold $1.5 billion of shares.

AirAsia dropped 1.5 percent to 2.67 ringgit, its lowest close since April 20, 2011. The stock has slumped 19 percent since Sept. 10, erasing 1.7 billion ringgit ($556 million) from its market value, amid concern competition may intensify after Indonesia’s PT Lion Mentari Airlines said it would help set up a rival low-cost carrier in Malaysia named Malindo Airways. The stock, which joined the index last December, is down 29 percent this year.

Reserve List

Malaysia Marine has slipped 21 percent in 2012, compared with a 7.9 percent increase in the KLCI index. The stock slid 2.2 percent today. The company said last month its third-quarter net income fell to 8.1 million ringgit from 80.2 million ringgit a year earlier.

Felda Global and Astro closed unchanged at 4.60 ringgit and 2.95 ringgit respectively. The MSCI Asia Pacific Index was little changed.

IHH Healthcare Bhd., a hospitals operator, joined Malaysia’s benchmark gauge in August after raising $2.1 billion in a dual listing in Malaysia and Singapore.

AirAsia, Gamuda Bhd., SapuraKencana Petroleum Bhd., MMC Corp. and Lafarge Malayan Cement Bhd. were placed on a reserve list to join the KLCI, according to yesterday’s statement. The next review will take place on June 13.

To contact the reporter on this story: Gan Yen Kuan in Kuala Lumpur at ykgan@bloomberg.net

To contact the editors responsible for this story: Barry Porter at bporter10@bloomberg.net; Darren Boey at dboey@bloomberg.net

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