By Chester Tay
KUALA LUMPUR–Mr. DIY Group (M) Bhd. is up in early trade after the stock was picked for inclusion in the MSCI Malaysia Index at a semi-annual review.
Shares of the operator of home-improvement stores rose as much as 10% before paring gains to trade 4.7% higher at MYR3.59, putting the stock on track for its biggest one-day gain this year.
Index provider MSCI late Thursday said it will add Mr. DIY to its Malaysia index, effective as of market close on May 31, and cut Westports Holdings Bhd. and Fraser & Neave Holdings Bhd. from the index. Shares of Westports and Fraser & Neave fell 9.8% and 3.4% in early trading, respectively.
The review is attracting more buying interest in Mr. DIY because certain funds are benchmarking themselves to the MSCI index, said Loui Low Ley Yee, Malacca Securities’ head of research.
He added that some investors could also be adopting a strategy of buying ahead of Mr. DIY’s earnings report expected today, with plans to take profit afterward.
Mr. DIY Group reported a 24% growth in its fourth-quarter net profit as more of its stores came into full operation with Malaysia’s easing Covid-19 restrictions.
Write to Chester Tay at [email protected]
Credit: www.marketwatch.com /