KUALA LUMPUR: The shares of companies that had just been reinstated in the Syariah-compliant list fared well yesterday as the new status could attract a wider spectrum of investors.
Among key additions, Bumi Armada share went up four sen to RM1.2 at closing, while Malakoff added one sen to RM1.77 and SapuraKencana increased two sen to RM2.63.
The Securities Commissions has published an updated list of Syariah-compliant securities, which takes effect yesterday, featuring 674 stocks, with 19 stocks added to the list, while 13 others excluded.
HLIB Research said Star Publications also retained its Syariah status despite warnings that it might be excluded due to cash ratio.
“We believe this is reasonable, given that it is easier to satisfy the cash ratio by placing cash in Syariah deposits vis-à-vis companies who failed due to the debt ratio.
“We reiterate our ‘buy’ rating on Star as it retains its Syariah status, mitigating potential weakness from a selldown due to change in status,” the research house said in a note.
Star share price was two sen higher at RM2.47.
IOI Corp, which was reclassified as Syariah non-compliant company, saw its shares 6.0 sen easier at RM3.99, while HLIB Research maintained its ‘hold’ call on the stock despite potential share price weakness. — Bernama