Bumi Armada actively traded on plan for MSCI index

by **hlk** Thu 01 Dec 2011, 08:10

PETALING JAYA: Bumi Armada Bhd was the second most actively traded stock on Bursa Malaysia yesterday, hitting a near four-month high of RM4.22 although selling pressure pushed it back to RM4.04 in Wednesday’s close.

A total of 75.08 million shares were traded despite the absence of any significant news or developments in the company.

Dealers, however, put the active trading of Bumi Armada stock to the strong likelihood that it would be added to the MSCI Malaysia Index from today.

“Bumi Armada will be added to MSCI Malaysia Index from Dec 1, replacing PLUS Expressways Bhd on the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) once it (PLUS) is delisted.

“There are expectations that the index will join the FBM KLCI and this is what may have triggered the spike in its share price,” said one dealer.

Another dealer concurred, adding: “By joining the MSCI, it could be on the radar of certain funds.”

Controlled by billionaire T. Ananda Krishnan, Bumi Armada was listed on July 20 at a price of RM3.03. The company raised some RM2bil from its initial public offering (IPO), making it Malaysia’s biggest so far this year and the second biggest in South-East Asia after the listing of Singapore’s Hutchison Port Holdings Trust.

At its IPO price, it is the biggest oil services group that is not linked to the Government with a market value of RM8.9bil.

Bumi Armada’s income stream is derived from the deployment of floating production storage and offloading and offshore support vessels as well as transport and installation and oilfield services.