CIMB Securities Sdn Bhd expects HLFG to fail the liquidity screening requirement, which mandates a monthly median trading velocity of at least 0.04% in eight of the past 12 months. The group has met the requirement for only seven months.

The review, to be based on share prices at the close of trading yesterday, is scheduled for June 4, a day before the official release of the final review. Any change in the index constituents will take effect on June 23, according to a note issued by CIMB Securities this morning.

The FBM KLCI tracks the performance of the 30 largest companies by market capitalisation that are listed on the main board of Bursa Malaysia.

To remain on the index, existing constituents must satisfy three criteria, which are to meet market capitalisation ranking requirements, maintain a free float of 15% and pass the liquidity screening test.

The liquidity screening test assesses the median daily trading volume as a percentage of shares in issue over a 12-month review period.

A stock must maintain a monthly median daily trading volume of at least 0.04% of its shares in issue, after applying any investability weightings, in at least eight out of the past 12 months.

If an existing FBM KLCI constituent drops out of the index, it will be replaced by the highest-ranking non-constituent company based on market capitalisation.

“As of May 26, AmBank holds this position. Our checks also confirm that AmBank meets the other two inclusion criteria: it has a minimum free float of at least 15% and has satisfied the liquidity requirement, with a monthly median trading velocity of at least 0.05% in the past 12 months (June 2024–May 2025),” CIMB Securities added.