Malaysia's KLSI, Second Board And MESDAQ Indices Retire And Replaced By FTSE Bursa Malaysia Indices

Bursa Malaysia will retire the Kuala Lumpur Syariah Index (KLSI), Second Board and MESDAQ indices which will be replaced with the FTSE Bursa Malaysia EMAS Shariah, FTSE Bursa Malaysia Second Board and FTSE Bursa Malaysia MESDAQ Index respectively on 1 November 2007. The retirement of the KLSI will see the FTSE Bursa Malaysia EMAS Shariah Index become the primary index for Malaysian Shariah-compliant investments.

The new FTSE Bursa Malaysia indices will run parallel with the existing indices until 2 November 2007 (Friday) and the existing indices will no longer be calculated by Bursa Malaysia from 3 November 2007 onwards.

The cutover of the existing indices to the FTSE Bursa Malaysia indices is part of the conversion plan for Malaysia’s domestic benchmarks to provide all investors with market measures that are investable, liquid and transparently managed. The series adopts FTSE’s globally recognised methodology standards such as free float adjustment and liquidity screens and are managed according to a set of clear, transparent and publicly available set of ground rules.

Chief Executive Officer of Bursa Malaysia Berhad Dato’ Yusli Mohamed Yusoff said, “The transition to FTSE Bursa Malaysia indices provides a more globally relevant trading foundation for both domestic and foreign investors to base their investment analyses and decisions, increasing its appeal to international investors. In addition to this, the FTSE methodology will enhance overall quality of PLCs on the bourse through its stringent reviews.”

Paul Hoff, Managing Director of FTSE Asia Pacific said “The replacement of the KLSI, Second Board and MESDAQ indices with indices using FTSE’s internationally accepted methodology demonstrates Bursa Malaysia commitment to bringing their domestic benchmarks in line with the needs of international investors.”