There will be separate technology sectors for Main Board and Second Board companies, whilst the technology index is an all share index representing both the Main Board and the Second Board technology companies.
KLSE Executive Chairman Dato', Mohd Azlan Hashim said the establishment of a technology sector and index is a vital, proactive effort in informing and assisting investors to track technology stock investments.
"This is certainly an important development in assisting investors to identify technologically innovative companies which are listed, whilst encouraging technologically innovative companies which are not listed, to seek a listing on the KLSE.
"With the KLSE technology sector and technology index, investors have an excellent source of reference for investing in technology stocks within a broader context. This will help expand the perspective that technology stocks are not only confined to IT and internet related stocks, but include stocks of companies from a broad range of economic activities which are innovative in the development and use of technology," Mohd Azlan said.
At this initial stage, the companies considered for inclusion in the technology sector are only those from the computer hardware and software, electronics and telecommunication areas which are technologically innovative and are currently engaged in or committed to research and development activity.
The considerations for selecting companies for the KLSE technology sector, amongst others, include: ability to develop technology, or to significantly innovate and apply technology towards business growth and success; capability and achievement in technological innovation; users as well as developers and innovators of technology.
The methodology used in defining companies listed on the KLSE for the technology sector took into account, amongst others, the classification for technology companies internationally, regionally as well as in Malaysia. Similarly, in establishing the KLSE technology index, a review was undertaken of international and local technology indices. Mohd Azlan said the extensive effort put into the classification of the technology sector and index contributes to present efforts in recognising technologically innovative companies listed on the KLSE.
"Indeed, with the KLSE technology sector and index, the opportunity for technologically innovative and technologically driven listed companies to be identified and recognised by investors, has now improved tremendously," he said.
The KLSE technology sector will initially comprise 15 public listed companies - seven main board companies and eight second board companies.
Regular reviews of the companies to be included in the technology sector and the technology index will be undertaken by KLSE to ensure that selected companies continue to reflect the classification for the technology sector and index of the KLSE.
