Latest news with #FBMEMASIndex
The Star
2 hours ago
- Business
- The Star
REITs in good stead for F4GBM Index inclusion
PETALING JAYA: Malaysian real estate investment trusts (REITs) are expected to gain further traction in the sustainability space, with increasing potential for enhanced representation in the FTSE4Good Bursa Malaysia (F4GBM) Index in the coming review cycle this December. This momentum reflects the sector's growing alignment with environmental, social, and governance (ESG) standards. CIMB Research highlighted that Sunway Real Estate Investment Trust (Sunway REIT) is a strong contender for F4GBM Index inclusion by year-end. 'Our assessment indicates that Sunway REIT is on track for potential inclusion in the F4GBM Index in Dec 2025,' the brokerage said in a recent note. In the June 2025 review, Sunway REIT joined Axis REIT and Capitaland Malaysia Trust (CLMT) in attaining ESG Grading Band 4 — the second-highest tier — marking the highest number of REITs achieving this level in the last six cycles. Despite this, Sunway REIT was not added to the index at that point as it was not a constituent of the FTSE Bursa Malaysia EMAS Index as at end-May 2025 due to previously low liquidity. However, a turnaround in liquidity saw Sunway REIT re-enter the FBM EMAS Index following the June 2025 semi-annual review, paving the way for potential inclusion in the December 2025 F4GBM Index review. CIMB Research recommended 'hold' on Sunway REIT, with a target price of RM2.11. According to CIMB Research, 'Only companies that are constituents of the FBM EMAS Index as at end-May are eligible for consideration in the June F4GBM Index review, while companies added thereafter are only eligible in the December review.' The REIT sector's weightage in the F4GBM Index has risen to 1.7% from 1.1% in December 2024, following the inclusion of 19 new companies in the June 2025 update. Among these were CLMT, KIP REIT, and YTL Hospitality REIT , bringing the total number of REIT constituents to seven out of 160. 'To qualify for inclusion in the F4GBM Index, companies must achieve a minimum ESG score of 2.9 out of 5,' CIMB Research noted. Based on its analysis, CLMT likely qualified due to liquidity, while YTL REIT and KIP REIT earned their spots through improved ESG performance. Still, five of the 10 largest REITs by market capitalisation — which represent 93% of the sector's total market cap — remain absent from the index, including KLCC REIT and IGB Commercial REIT, mainly due to liquidity issues. Al-Aqar Healthcare REIT was excluded for failing to meet the minimum ESG score. 'Overall, we are positive on the gradual progress made by REIT players in enhancing their ESG practices, as reflected by the increasing number of constituents in the F4GBM Index,' CIMB Research stated. The brokerage emphasised that further ESG gains lie within the environmental pillar, particularly in reducing carbon emissions and boosting energy efficiency. 'A key area for improvement is the reduction of carbon emissions through greater adoption of renewable energy or improving energy efficiency,' it said. REITs were encouraged to consider subscribing to Tenaga Nasional Bhd 's Green Electricity Tariff programme, which was revised in July 2025 to offer a more accessible flat rate of five sen per kilowatt-hour. KIP REIT was singled out for retrofitting efforts across seven malls through a performance-based partnership that is expected to deliver energy savings of 15% post-capex recovery. 'Sustainability-linked financing embeds pre-agreed sustainability performance targets into financing terms, directly linking borrowing costs to the achievement of ESG outcomes,' CIMB Research added, citing Sunway REIT's RM3.4mil in savings from 2021 to 2023 as an example. With tenants increasingly favouring green-certified spaces and cost-effective financing tied to sustainability metrics, Malaysian REITs are positioned to benefit from continued ESG integration in the long term.
BusinessToday
09-07-2025
- Business
- BusinessToday
KLCI Slips At Midday While Mid-Caps Muscle Ahead
Bursa Malaysia closed the morning session on Tuesday with mixed performance across key indices, as the benchmark FBM KLCI slipped 2.74 points to 1,527.40 at 12.30pm, weighed down by selected heavyweights despite gains in broader market segments. The FBM 70 outperformed with a 0.43% gain or 71.76 points to 16,609.66, while the FBM Shariah Index added 26.62 points to 11,459.06. The broader FBM EMAS Index saw a marginal rise of 0.05 points to 11,468.19, and the FTSE4Good Bursa Malaysia Index eased slightly by 0.24 points to 927.31. Market sentiment was buoyed by persistent interest in small and mid-cap counters, evident in the most actively traded stocks. PMCC Group topped the list with over 1.3 billion shares traded, rising half a sen to 22.5 sen. NEXG climbed 1 sen to 44.5 sen with over 500 million shares changing hands, while MRCB surged 4 sen to 54.5 sen amid brisk trading. Zetrix, however, edged down 0.5 sen to 96.5 sen despite active trading, while Tanco gained 0.5 sen to 89.5 sen. Investor focus remained on global macroeconomic cues and regional developments, with the upcoming US inflation data and continued geopolitical tensions weighing on risk appetite. At the same time, Malaysia's domestic corporate updates and government-led digitalisation efforts have kept retail interest alive in technology and construction-related counters. Overall, sentiment appeared cautious ahead of fresh catalysts, with investors taking a wait-and-see approach in the lead-up to earnings season and regional monetary policy cues. Related
BusinessToday
26-05-2025
- Business
- BusinessToday
Bursa Ends Higher As FBMKLCI Closes At 1,535.38, Led By Gains In Broad Market
Bursa Malaysia closed on a positive note today, with the benchmark FTSE Bursa Malaysia KLCI (FBMKLCI) advancing 8.36 points, or 0.55%, to finish at 1,535.38. The index traded between a high of 1,536.75 and a low of 1,531.76 throughout the day. Broader market sentiment was also upbeat. The FBM EMAS Index rose 54.39 points to 11,474.05, while the FBM 70 added 68.39 points to settle at 16,350.26. The FTSE4Good Bursa Malaysia Index (F4GBM) increased 4.88 points to 925.13. Meanwhile, the FBM Shariah Index climbed 43.20 points to close at 11,426.22. On the active stocks list, ECOSHOP [5337] was the most traded, soaring 7 sen to RM1.20 on a massive volume of 2.09 billion shares. MYEG [0138] also gained 2.5 sen to RM0.92, with 384.75 million shares traded. In contrast, BARAKAH [7251] slumped 2.5 sen to 0.5 sen, while YTL [4677] fell 11 sen to RM1.88. Market breadth remained positive as buying interest continued to support key indices, reflecting investor optimism despite regional uncertainties. Related
