Malaysia’s domestic blue-chip index, the KLCI has undergone a transformation, today opening as the newly-designed FTSE Bursa Malaysia KLCI (index code FBM KLCI). The new 30 stock benchmark carries all the internationally recognised hallmarks investors expect from a FTSE-calculated index. It will also enjoy additional global visibility, and is ideally positioned to stimulate increased international capital flows into Malaysia’s domestic market.
FTSE Bursa Malaysia KLCI joins other indices within the FTSE Bursa Malaysia Series, and will be jointly marketed by FTSE and Bursa Malaysia, to both domestic and international investors. Adding the benchmark to the FTSE series, brings many additional benefits for issuers, investors and intermediaries in the Malaysia and is an important step forward in the country’s ongoing capital market enhancement initiatives. These benefits include enhanced transparency and risk management through increased index calculation frequency, an opportunity to assess the blue chip index constituents on a regional, pan regional and global basis through a standardised classification system and distribution to an increased network of real-time index users in 77 countries around the world.
The opening value for FTSE Bursa Malaysia KLCI was rebased in line with Friday’s close value of the retiring index, to ensure a seamless transition for all index users.
Financial products currently tracking the retiring index, such as the FBM30etf, Kuala Lumpur Composite Index Futures (FKLI) and the Kuala Lumpur Composite Index Options (OKLI) adopt the FTSE Bursa Malaysia KLCI as its underlying index with effect from today.
Donald Keith, Deputy Chief Executive, FTSE Group said, “FTSE indices are recognised and chosen by investors globally as preferred tools for a variety of investment purposes. I am delighted that Bursa Malaysia has chosen to extend its partnership with FTSE by transitioning its flagship index to become part of FTSE Bursa Malaysia Series. FTSE now calculates domestic blue chip indices for a number of markets internationally, including the UK, Italy, Singapore and South Africa. We’re proud that exchanges and investors alike value our approach to index management and trust us to calculate these vital market indicators.”
Other changes to the FTSE Bursa Malaysia Index Series include the retirement of the FTSE Bursa Malaysia Large 30 Index and a name change of the FTSE Bursa Malaysia 100 Index to the FTSE Bursa Malaysia Top 100 Index.
More information is available at www.ftse.com/bursamalaysia and www.bursamalaysia.com.
