Inve$t | Market Sentiments
According to FTSE Russell and Bursa Malaysia Bhd, there are no changes to the constituents of the FTSE Bursa Malaysia KLCI, following the semi-annual review of the FTSE Bursa Malaysia Index Series. The index series is reviewed semi-annually in accordance with the index ground rules. The FTSE Bursa Malaysia KLCI reserve list, comprising the five highest-ranking non-constituents of the index by market capitalisation, will be Westports Holdings Bhd, QL Resources Bhd, AMMB Holdings Bhd, Malaysia Airports Holdings Bhd and Gamuda Bhd. The reserve list will be used if one or more constituents are deleted from the FTSE Bursa Malaysia KLCI in accordance with the index ground rules during the period up to the next semi-annual review. Meanwhile, eight new constituents would be added to the FTSE Bursa Malaysia Mid 70 Index, namely Aeon Co (M) Bhd, Boustead Plantations Bhd, Chin Hin Group Bhd, Farm Fresh Bhd, Hengyuan Refining Company Bhd, Hextar Global Bhd, Hibiscus Petroleum Bhd and Ta Ann Holdings Bhd. As a result, Allianz Malaysia Bhd, ATA IMS Bhd, Cahya Mata Sarawak Bhd, GDEX Bhd, Hong Leong Industries Bhd, Magnum Bhd, Sapura Energy Bhd and YTL Hospitality REIT will be deleted from the FTSE Bursa Malaysia Mid 70 Index. For the FTSE Bursa Malaysia Hijrah Shariah Index, two new constituents will be added – FGV Holdings Bhd and Sunway Bhd – while Inari Amertron Bhd and Press Metal Aluminium Holdings Bhd would be deleted from the index. All constituent changes take effect at the start of business on June 20. The next review will take place in December 2022.
AmInvest launches New China Sectors Index Fund
According to AmInvestment Bank chief executive officer Tracy Chen Wee Keng, AmInvest has introduced its New China Sectors Index Fund that will enable investors to ride on the potential growth of the flourishing consumer and consumer-related sectors in China. The fund, launched in view of China’s rising local purchasing power, will feed into the Industrial and Commercial Bank of China (ICBC) and CSOP Asset Management Limited (CSOP) S&P New China Sectors exchange traded fund (ETF) (target fund), which tracks the performance of S&P New China Sectors (A-shares Capped) Index. The fund is timely, as it is positioned to capture the potential new growth sectors of China whose economy has been transitioning from an investment-led to consumption-led growth model. While China’s traditional sectors such as energy, materials and industrials have shown signs of a slowdown in growth, new sectors such as consumer, communications, healthcare and technology are driven by the continued growth of consumer demand. Meanwhile, according to AmFunds Management Bhd chief executive Goh Wee Peng, demographics and consumer trends will continue to shape China’s consumer landscape for the next decade of growth. AmInvest is excited to again partner with CSOP, which is one of the largest and most active ETF issuers in Hong Kong. China’s annual growth rate of disposable income per capita, driven primarily by the rise of the middle class, has exceeded 8%. Singles’ Day, the world’s biggest online shopping event in November last year, garnered an outstanding total spending of 965.1 billion yuan (about RM629.4 billion) despite the slowdown in China. The shifting patterns of consumer spending in China’s ageing society have also supported demand-driven sectors such as insurance, medical care and fitness. The fund’s base currency is the Hong Kong dollar. It is being offered for subscription to sophisticated investors in Hong Kong dollar and ringgit and in ringgit-hedged classes at an initial offer price of HK$1 and RM1 per unit respectively, during the initial offer period which ends on June 20, 2022.
Eye On The Markets
This week, on Friday (3June), the Ringgit opened at 4.3815 against the USD from 4.3755 on Monday (30May). Meanwhile, the Ringgit was 3.1982 to the Sing Dollar on Friday (3June). On Monday (30May), the FBM KLCI opened at 1546.35. As at Friday (3June) 10:00am, the FBM KLCI is down 0.05 points for the week at 1546.30. Over in US, the overnight Dow Jones Industrial Average closed up 435.05 points (+1.33%) to 33,248.28 whilst the NASDAQ added 322.44 points (+2.69%) to 12,316.90.