Do you know ?
As at Jan 2020, there are 931 listed companies in Bursa Malaysia, but only 170 of them have market capitalisation above RM1 billion.
| Market Capitalization | Number | Cumulative |
| More than 10 billion | 36 | 36 |
| Between 5 billion to 10 bilion | 23 | 59 |
| Between 2 billion to 5 bilion | 57 | 116 |
| Between 1 billion to 2 bilion | 54 | 170 |
| Less Than 1 billion | 761 | 931 |
At RM1.54, Jaks' market capitization is RM1.003 billion. In Bursa Malaysia, it is ranked 170th in term of market capitalization.
For information purposes, MFCB and YTLPOWER have current market capitalization of 2.38 billion and 5.87 billion respectively.
What is Market Capitalization ? - Investopedia
Market capitalization refers to the
total dollar market value of a company's outstanding shares of stock.
Commonly referred to as "market cap," it is calculated by multiplying
the total number of a company's outstanding shares by the current market
price of one share. As an example, a company with 10 million shares
selling for $100 each would have a market cap of $1 billion. The
investment community uses this figure to determine a company's size, as
opposed to using sales or total asset figures.
Why is market capitalization of over a billion important to Jaks ?
"The main goal of all mutual fund
managers is to generate returns. However, the type of fund and the
investment objectives of its shareholders are the primary factors
determining how each manager picks the stocks in his fund's portfolio.
Complicating matters further, each of the above fund types can be
specialized to account for the risk tolerance, beliefs or market outlook
of shareholders. For example, some funds invest only in companies with
certain market caps, those in certain industries or those with specific
corporate values or practices, such as funds that do not invest in
so-called "sin stocks" such as alcohol and tobacco." - Investopedia
In other words, market capitalization is an important consideration factor to fund managers. Certain funds are mandated to only invest in companies above certain market capitalization. eg. over a billion.
Conclusion:
Being the largest 170 companies in Bursa
malaysia in term of market capitalization, Jaks will be on the radar
screen of most, if not all, fund managers investing in Malaysia
including foreign funds.In other words, market capitalization is an important consideration factor to fund managers. Certain funds are mandated to only invest in companies above certain market capitalization. eg. over a billion.
Conclusion:
DK66
https://klse.i3investor.com/blogs/Jaks%20resources/2020-02-22-story-h1483912636-Jaks_Resources_Ranked_170th_In_Market_Capitalisation.jsp
