The semi annual review of the FTSE Bursa Malaysia Index Series concluded today with no constituent changes applied to the FTSE Bursa Malaysia Large 30 Index. The constituents of the FTSE Bursa Malaysia Large 30 will be adopted as the constituents of the FTSE Bursa Malaysia KLCI on 6 July 2009.The FTSE Bursa Malaysia KLCI, which will have 30 constituents, will be the definitive benchmark index that closely represents the Malaysian market performance. This move to adopt the FTSE methodology to Malaysia’s primary market benchmark index is in line with global investors’ need to track indices that are tradable, investable and transparent.
Bursa Malaysia’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff emphasised, “Enhancing our current KLCI to the FTSE Bursa Malaysia KLCI puts us on par with other global benchmark indices which provide its users with effective means to track the market performance. In addition, the listed constituents will benefit from the international profiling accorded by the FTSE indices.”
Paul Hoff, Managing Director, FTSE Asia Pacific said, “As the Malaysian market evolves in line with investors’ requirements, evolutions in indexing are required to keep pace. As the KLCI adopts FTSE’s globally accepted methodology standards and indices are updated to reflect Bursa Malaysia’s board merger, FTSE and Bursa Malaysia will continue to evolve the partnership indices which provide best in class indices for Malaysia’s investors.”
FTSE Bursa Malaysia Large 30 Index
The FTSE Bursa Malaysia Large 30 Index will be retired on 6 July 2009. Financial products using the FTSE Bursa Malaysia Large 30 Index or KLCI, such as the FBM30etf issued by AmInvestment, Kuala Lumpur Composite Index Futures (FKLI) and the Kuala Lumpur Composite Index Options (OKLI) will adopt the FTSE Bursa Malaysia KLCI as its underlying index with effect from 6 July 2009.
FTSE Bursa Malaysia Mid 70 Index
There is one change in the FTSE Bursa Malaysia Mid 70 with UEM Land Holdings Bhd. to replace Ta Ann Holdings Bhd.
FTSE Bursa Malaysia Second Board index
The FTSE Bursa Malaysia Second Board index was not reviewed in anticipation of Bursa Malaysia’s merger of the Second Board with the Main Board on 3 August 2009. Instead, the Second Board companies were reviewed together with the Main Board. The eligible Second Board constituents will be added to the appropriate FTSE Bursa Malaysia indices with effect from 3 August 2009. The FTSE Bursa Malaysia Second Board Index will be decommissioned at this time.
Other indices
Other indices in the FTSE Bursa Malaysia series were also reviewed today, and a number of constituent changes were approved.
These changes will be applied to the index when markets open on 22 June 2009.
Full details of all indices reviewed are accessible at http://www.ftse.com/Indices/FTSE_Bursa_Malaysia_Index_Series/Index_Reviews.jsp.
Index codes and performance information is available at www.ftse.com/bursamalaysia and www.bursamalaysia.com.