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Malaysian Airline System Replaces Nestle (Malaysia) In The FTSE Bursa Malaysia KLCI After June 2010 Semi-Annual Review - Robustness Of FTSE Bursa Malaysia Index Series Enhanced With Increase In Frequency Of Liquidity Review

Date 10/06/2010

FTSE Group (“FTSE”), the award-winning global index provider, and Bursa Malaysia Berhad (“Bursa Malaysia”) have announced that Malaysian Airline System will replace Nestle (Malaysia) in the FTSE Bursa Malaysia KLCI following the semi-annual review approved by the FTSE Bursa Malaysia Index Advisory Committee today.

The FTSE Bursa Malaysia KLCI is widely followed by investors as the benchmark for the Malaysian market and is used as the basis for the FTSE Bursa Malaysia KLCI ETF, FTSE Bursa Malaysia KLCI Futures (FKLI), FTSE Bursa Malaysia KLCI Options (OKLI) and other financial products including warrants.  The indices are reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee to ensure compliance with a set of transparent and publically available index rules.  This is essential as the indices are used to benchmark investment portfolios and as the basis of index-linked products.

The constituents of the FTSE Bursa Malaysia Index Series were also assessed for liquidity as part of the June review. This follows an increase in the frequency of liquidity reviews from annually in December to semi-annually in June and December. Increasing the frequency of liquidity reviews for the FTSE Bursa Malaysia Index Series provides more robust indices that better reflect the liquidity of the investable market. It is also an important criterion for investors who expect the index constituents to have sufficient liquidity to enable easy and efficient trading.

The FTSE Bursa Malaysia KLCI reserve list, comprising the five highest ranking non-constituents of the index by market capitalisation, will be (in order of full market capitalisation) IJM, Gamuda, Berjaya Corp, Lafarge Malayan Cement and Parkson Holdings. Companies in the reserve list will replace constituents that become ineligible as a result of corporate actions before the next review.

The changes to the FTSE Bursa Malaysia Mid 70 Index are detailed below:

 

Inclusions

Exclusions

1

JCY International

Malaysian Airline System

2

NCB Holdings

Tradewinds Plantation

 

The FTSE Bursa Malaysia Hijrah Shariah Index, a tradable index of 30 stocks to be used as the basis for international Shariah-compliant products, was also reviewed and the following changes were approved:

 

Inclusions

Exclusions

1

Axiata Group

Nestle (Malaysia)

2

Malaysian Bulk Carriers

Star Publication Malaysia

3

Bintulu Port Holdings

IJM Plantations

4

Kulim Malaysia

Wah Seong

 

All constituent changes take effect at the start of business on 21 June 2010 and the next review will take place on 9 December 2010.

Further information on the FTSE Bursa Malaysia Index Series review including all additions and deletions as well as ground rules are available at www.ftse.com/bursamalaysia.  Index codes and performance information is available at www.ftse.com/bursamalaysia and www.bursamalaysia.com.