KUALA LUMPUR (Feb 12): Gaming and resort operator Genting Malaysia Bhd (KL:GENM) and semiconductor services firm Inari Amertron Bhd (KL:INARI) have been removed from the main MSCI Malaysia Index in the February review.

Both stocks have been relegated into the Malaysia Small Cap Index, along with new entrant IGB Real Estate Investment Trust (KL:IGBREIT), MSCI said in a statement. All changes to MSCI indices will be effective at the close of Feb 28, 2025, the index provider said. .

The next review, which would be a semi-annual rebalancing, has been scheduled for May 13, 2025.

MSCI Malaysia currently has 32 constituents that covers about 85% of the country’s equity universe before the deletion of Genting Malaysia and Inari.

MSCI indices are closely watched by fund managers and foreign investors. An exclusion from the indices can trigger outflows, as passive investors sell the former constituent in their portfolios to mirror the benchmarks.

At the end of January 2025, Public Bank Bhd (KL:PBBANK), CIMB Group Holdings Bhd (KL:CIMB), and Malayan Banking (KL:MAYBANK) were the index’s top three constituents that collectively account for 36% of the index weightage. Financials made up 44% of the sector weights.

Other changes to the Small Cap Index are the deletions of Bermaz Auto Bhd (KL:BAUTO), DRB-Hicom Bhd (KL:DRBHCOM), Hibiscus Petroleum Bhd (KL:HIBISCS), Padini Holdings Bhd (KL:PADINI), and Ta Ann Holdings Bhd (KL:TAANN).

MSCI Malaysia Small Cap Index has 70 constituents, which covers about 14% of the Malaysian equity universe at the end of January.  The top three constituents in the index were Dialog Group Bhd (KL:DIALOG), Top Glove Corporation Bhd (KL:TOPGLOV), and Bursa Malaysia Bhd (KL:BURSA).