MSCI announced on May 13 that it will remove six stocks from the MSCI Malaysia Index following its latest quarterly review [1, 2, 3, 4, 5]. The stocks affected are Axiata Group Bhd, Mr DIY Group Bhd, PETRONAS Dagangan Bhd, Nestle (Malaysia) Bhd, QL Resources Bhd, and YTL Corporation Bhd [1, 2, 3, 4, 5].
The changes take effect at the close of trading on May 29, 2026 [1, 2, 3, 4, 5]. MSCI’s next quarterly review is scheduled for August 12, 2026 [1, 2, 3, 4, 5].
The announcement triggered immediate market reactions. YTL Corporation’s shares fell nearly 4%, QL Resources dropped 3%, and both Mr DIY and Axiata lost over 2% [3]. PETRONAS Dagangan bucked the trend, gaining about 3.8% on the news [3]. Excluding PETRONAS Dagangan’s gain, the other five stocks lost a combined RM2.35 billion in market capitalization [3].
Kenneth Leong, head of research at Berjaya Research Sdn Bhd, said, "There could be some selling pressure over the move," reflecting concerns that the removals may prompt portfolio adjustments by fund managers and international investors [3, 2, 4, 5].
Investors and market watchers expect increased volatility as the removal date approaches. Fund managers may rebalance holdings to reflect the updated index composition, potentially causing more share price fluctuations.
The MSCI Malaysia Index revision will be fully implemented after markets close on May 29, 2026, setting the stage for the next review in August.
