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- New indexes cover mid- and small-cap companies
- Broad range of industry sectors covered
- Support Malaysian government initiatives to promote mid-cap market segment
FTSE Russell and Bursa Malaysia have launched two new indexes, which will track mid and small-cap companies. The FTSE Bursa Malaysia MidS Cap Index comprises constituents from the FTSE Bursa Malaysia EMAS Index with a full market capitalisation range of MYR 200 million to MYR 2 billion, subject to buffers applied to provide stability in the selection of constituents at the semi-annual reviews. The FTSE Bursa Malaysia MidS Cap Shariah Index consists of all constituents of the FTSE Bursa Malaysia MidS Cap Index that are Shariah compliant according to the Shariah Advisory Council screening methodology.
The FTSE Bursa Malaysia MidS Cap Index currently has 169 constituents, representing approximately US$15 billion of investable market capitalisation. The indexes will support initiatives from the Malaysian government to inject more liquidity into the mid and small-cap market segment.
Jessie Pak, Managing Director, Asia, FTSE Russell, said:
“We are delighted to expand FTSE Russell’s partnership with Bursa Malaysia with the launch of two new indexes. Mid and small-cap companies are of increasing interest to investors around the world and these indexes will provide benchmarks for the growing market segment in Malaysia.”
Datuk Seri Tajuddin Atan, Chief Executive Office, Bursa Malaysia Berhad said:
“The inclusion of two new mid and small-cap index into the FTSE Bursa Malaysia Index Series is in line with global trends where investors are now allocating their investment portfolio strategically to the mid and small cap equity segment. The mid and small cap stocks offer attractive growth prospects and provide greater opportunity for active managers to make informed decisions within the sector. At Bursa Malaysia’s end, we aim to further grow the two new equity segments and continue to drive sustainability to our marketplace by bringing new investable products to the market. The decade-long partnership between Bursa Malaysia and FTSE Russell have served both parties well, and we believe the new indexes will have a good following before long.”
Launched in 2006 in partnership with Bursa Malaysia, the FTSE Bursa Malaysia Index Series is a broad range of indexes covering all eligible companies listed on the Bursa Malaysia Main and ACE Markets. The indexes are designed to measure the performance of the major capital segments of the Malaysian market, dividing it into large-cap, mid-cap, small-cap, fledgling and Shariah-compliant market segments. The indexes enable market participants to measure and create products in these distinct segments of the Malaysian market.
The partnership also brings FTSE Russell’s FTSE4Good index methodology to the Malaysia market by introducing the FTSE4Good Bursa Malaysia Index which has been designed to identify Malaysian companies with recognised corporate responsibility practices.
More information on the FTSE Bursa Malaysia index series can be found on the FTSE Russell website.
