New FTSE Bursa Malaysia Palm Oil Plantation Indices To Boost Exchange’s Standing As Key Commodity Centre

Bursa Malaysia Berhad (Bursa Malaysia) and award winning global index provider, FTSE Group (FTSE), today announce the launch of the FTSE Bursa Malaysia Palm Oil Plantation Index Series. This series enables investors to gain exposure to the long term growth potential of the lucrative, billion dollar palm oil industry, both in Malaysia and the Asian region. This is one further step to cement Bursa Malaysia’s position as a key centre for commodities-related capital market offerings.

The three indices launched today are the:

FTSE Bursa Malaysia Palm Oil Plantation Index in Ringgit Malaysia based on the FTSE Bursa Malaysia EMAS universe;
FTSE Bursa Malaysia Asian Palm Oil Plantation Index in Ringgit Malaysia; and
FTSE Bursa Malaysia Asian Palm Oil Plantation Index in US Dollars.

Both Asian related palm oil plantation indices are based on the universes of developed, advanced emerging and secondary emerging countries as classified by FTSE in the Asia Pacific region excluding Japan, Australia and New Zealand, and are available in gross and net of tax versions.

These three indices allow investors to track the performance of listed companies which derive substantial revenues from palm-oil related activities. The series also supports the creation of Exchange Traded Funds (ETFs), structured products and other index-linked investment instruments.

Chief Executive Officer of Bursa Malaysia, Dato’ Yusli Mohamed Yusoff said, “The introduction of these new palm oil plantation indices is an exciting opportunity that will complement and strengthen Malaysia’s existing position as a significant player in the global palm oil industry. These palm oil plantation related indices will complement our strong footing in palm oil commodities related sector and strengthen our crude palm oil futures market as it bridges between the cash and derivatives markets for hedging and arbitraging opportunities. In short, the new indices elevate the profile of Malaysia’s palm oil industry and also establish Bursa Malaysia as a centre for commodity trading.”

Paul Hoff, Managing Director, Asia Pacific for FTSE Group said, “We are seeing evidence of increased interest in agricultural/commodity investment as investors look for niche opportunities. We are pleased to be working with Bursa Malaysia again, this time to develop the FTSE Bursa Malaysia Palm Oil Plantation Index Series to capture this unique sector.”

For more information on FTSE Bursa Malaysia Palm Oil Plantation Index Series, please visit http://www.bursamalaysia.com/website/bm/market_information/ or www.ftse.com/bursamalaysia.