Tuesday, October 31, 2017

FW: AmBank Research - British American Tobacco : Potential exclusion from FBMKLCI SELL, 31 Oct 2017

 

 

STOCK FOCUS OF THE DAY         

British American Tobacco : Potential exclusion from FBMKLCI                                      SELL

 

We highlight the possibility of British American Tobacco (M) (BAT) being removed from the FBMKLCI Index as a component stock. We maintain our SELL recommendation and FV of RM36.70/share (WACC: 7.2% terminal growth: -1.0%).

 

How? There are two possible scenarios of BAT being removed from the FBMKLCI according to FTSE Bursa Malaysia Index Series ground rules. Refer Figure 4 of current ranking by market capitalisation.

1.Security is removed should its market cap ranking of eligible securities drop to =36th. As of 30th Oct market close, BAT’s market capitalisation ranking is 36th.

2.Security is inserted should its market cap ranking of eligible securities rises to =25th. As of 30th Oct market close, Press Metal Aluminium Holdings Berhad market capitalisation ranking is 24th.

 

When? The market capitalisation ranking will be determined based on the last trading day of November, which is Thursday 30th Nov. Meanwhile, the effective replacement will take place on the trading day after the third Friday of December, which is Monday 18th Dec 2017.

 

 

QUICK TAKE

Maybank : Pick up in loan growth, lower provisions for Maybank Indonesia          HOLD                                     NEUTRAL

                               

 

ECONOMIC HIGHLIGHT

US : Core-PCE is still muted

 

 

NEWS HIGHLIGHTS

UEM Sunrise Bhd : Buying more land in Klang Valley

AirAsia Bhd : Agree to form ground-handling tie-up with SATS

 

 

 

DISCLAIMER:

The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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