KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
The Nasdaq-100 Index, which features 100 of the largest and most innovative non-financial companies listed on the Nasdaq, is set for its annual reconstitution, with changes to be announced on December 13. Based on market capitalization and recent performance, several companies are in contention for inclusion, while others may face removal.
Potential Additions
Palantir Technologies (PLTR.US)
- Market Cap: $152 billion (as of last Friday).
- Recent Highlights:
- Achieved FedRAMP High Authorization, enabling its product suite to process sensitive federal workloads securely.
- Switched its Class A stock listing from NYSE to Nasdaq on November 26.
- Strong federal and commercial partnerships solidify its growth potential.
MicroStrategy (MSTR.US)
- Market Cap: $103 billion.
- Key Feature:
- Known for its large Bitcoin holdings, which account for nearly 2% of the global supply.
- Provides passive investors exposure to Bitcoin.
- Analysts at Bernstein predict it could hold 4% of the global Bitcoin supply by 2033, though this strategy carries long-term risks.
Coinbase (COIN.US)
- Market Cap: $74.2 billion.
- Key Position:
- A leading cryptocurrency exchange offering exposure to the growing digital asset market.
- Benefiting from increased institutional interest in cryptocurrencies.
Equinix Inc. (EQIX.US)
- Strong presence in the data center and cloud computing sector.
Potential Removals
Companies facing removal are characterized by lower market capitalizations, which make up less than 0.1% of the index weight. These include:
- Moderna (MRNA.US)
- Super Micro Computer (SMCI.US)
- Biogen (BIIB.US)
- CDW Corp (CDW.US)
- MongoDB (MDB.US)
Their market values range from $16.6 billion to $23.8 billion, placing them at risk in this year's adjustment.
Implications for Investors
The inclusion of companies like Palantir and MicroStrategy could:
- Enhance the index's tech and cryptocurrency exposure.
- Introduce passive investors to Bitcoin through MicroStrategy.
- Highlight growing federal and commercial cloud partnerships with Palantir.
For companies removed, this represents a potential drop in visibility and passive fund inclusion, which could pressure stock performance.
The annual reconstitution serves as a reminder of the dynamic nature of the Nasdaq-100, reflecting the evolving landscape of market leaders. Investors will be watching closely as the adjustments are finalized.
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