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.
****************************************************************************************************************************************************************************************************************************************************************************************************************
DISCLAIMER:
This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.
****************************************************************************************************************************************************************************************************************************************************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.