'FGVH, IHH likely FBM KLCI candidates'

Felda Global Ventures Bhd and IHH Healthcare Bhd are the most promising
candidates for inclusion in the FTSE Bursa Malaysia Kuala Lumpur
Composite Index (FBM KLCI) during the index's next
revision in December 2012, says an economist.

RAM
Holdings Bhd group chief economist Dr Yeah Kim Leng said the two
companies' initial public offerings (IPO) are among the largest in the
region this year.

The special position held by the stocks will
further strengthen the weightage of the FBM KLCI, which is widely used
by investors as the primary benchmark for the Malaysian market, and
forms the basis for a wide range of investment products positions.

"The
two IPOs have placed our country on the global industry map. Many small
and medium enterprises are looking forward for large and good quality
companies to be listed, which will encourage further participation.

"For
them to be placed in the top 30 index is only a matter of time, because
of their size and performance," he told reporters on the sidelines of
the 2012 CFO Summit Malaysia organised by the Association of Chartered
Certified Accountants here today.

The FBM KLCI index series is
reviewed semi-annually by the independent FTSE Bursa Malaysia Index
Advisory Committee. Among the companies currently in the list are
Maybank Bhd, Sime Darby Bhd, CIMB Bhd, Petronas Chemicals Bhd and Maxis
Bhd.

The FTSE Bursa Malaysia KLCI reserve list comprises the
five highest ranking non-constituents of the index by market
capitalisation -- SapuraKencana Petroleum Bhd, SP Setia Bhd, IJM
Corporation Bhd, Genting Plantations Bhd and Gamuda Bhd.

Yeah
said being constituents of the FBM KLCI gives IHH and FGV many
advantages, feeding the appetite of international investors keen for
stocks listed in the index.

"The inclusion is expected to be
slightly sooner than later. These are the future candidates. Thus Bursa
Malaysia will not be short of candidates to fill in the FMB KLCI," he
said.

Felda Global Ventures, the world's third largest oil palm
operator, was listed on June 28, 2012, with an impressive debut on
Bursa Malaysia at RM5.39, chalking up a premium of 84 sen over its
offer price of RM4.55.

IHH, which has a global network
operating 4,900 beds in 30 hospitals and over 24,000 employees
worldwide, is expected to be simultaneously listed on Bursa Malaysia
and the Main Board of Singapore Exchange Securities Trading Ltd on July
25.

Upon listing, IHH will have a market capitalisation of RM23
billion, making it one of the largest listed private healthcare
providers in the world. -- Bernama