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Bursa Malaysia Berhad (Bursa Malaysia) and the global index provider, FTSE Group (FTSE), today launched the FTSE Bursa Malaysia Second Board Index and FTSE Bursa Malaysia MESDAQ Index, two benchmark indices covering the Malaysian Second Board and MESDAQ market. The new indices, which complete the conversion to the FTSE Bursa Malaysia (FBM) main index series, will provide investors with a complete range of indices for the market.
These new indices have been created in response to market and investor demand for transparent and representative benchmarks that measure all tiers of the Malaysian market. The indices are designed using FTSE’s global methodology standards, such as free float adjustment. The indices are calculated in accordance with a clear, transparent and publicly available set of ground rules. An independent committee comprised of market practitioners regularly reviews the indices to ensure they adhere to these rules.
The new indices will run parallel with the existing Second Board Index and MESDAQ Index until 31 October 2007. The existing Second Board Index and MESDAQ Index will be retired on 1 November 2007.
Bursa Malaysia’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff said, “The new indices reflect our commitment to remain globally competitive by measuring our market’s performance using developed market benchmarks. These indices have strong features such as transparency, tradability and investability that typically appeal to investors internationally. The new indices provide investors with more investment opportunities as the indices ensure that only the investable opportunity is included.”
He added that the conversion to the internationally accepted FTSE indices was another step towards becoming more relevant to the demands of the global market.
Paul Hoff, Managing Director, FTSE Asia Pacific said, “FTSE Group again brings its globally recognised indexing expertise to the table by partnering with Bursa Malaysia to calculate investable and transparent indices for the second tier markets in Malaysia.”
The FTSE Bursa Malaysia Second Board Index and FTSE Bursa Malaysia MESDAQ Index join the FTSE Bursa Malaysia Index Series which comprises the FTSE Bursa Malaysia Large 30 Index, FTSE Bursa Malaysia Hijrah Shariah Index and more. In common with all FTSE Bursa Malaysia indices, the two new indices will be reviewed semi-annually in June and December.
For more information, go to www.ftse.com/bursamalaysia.
