According to The Star, FTSE Group, the index company, and Bursa Malaysia Bhd announced that Nestle (M) Bhd – Nestle (4704) would replace Parkson Holdings Bhd – Parkson (5657) in the 30-counter strong FTSE Bursa Malaysia KL Composite Index.
The replacement will take effect on on Monday, 21 December 2009. The reason why the replacement is made is not mentioned either in the article or the FTSE Group’s announcement.
I think they replace Nestle with Parkson in FBM KLCI is because of the Nestle’s stock price is much less fluctuate than the Parkson one. In this case, the FBM KLCI will look much more stable and also to prevent speculation on the index.
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