Published on: Saturday, March 25, 2006 |
Kuala Lumpur: Bursa Malaysia Bhd in collaboration with FTSE group, the global leader in creation of indices, will be launching the first phase of the new FTSE Bursa Malaysia Index series in June 2006.
In a joint media briefing by FTSE and Bursa, FTSE's managing director-Asia Pacific, Paul Hoff said one of the major index - The FTSE Bursa Malaysia Emas Index will replace the current Emas Index with effect from the former's launch.
However, the existing Kuala Lumpur Composite Index, he said, will be maintained and run concurrently with the FTSE Bursa Malaysia Index series.
"The other sectoral indices such as that of the Second Board, Mesdaq and finance will be phased out by end of this year by new innovative index based on the FTSE Dow Jones Industry classification Benchmark (ICB)," Hoff said.
He said that the next index development phase will centre on Islamic indices based on international Shariah standards and indices for the specific needs of institutional investors such as that based on the major sectors of the economy.
Of the new indices, the FTSE Bursa Malaysia Small Cap Index will comprise eligible companies within the top 98 percent of the Bursa Malaysia Main Board, excluding constituents of the FTSE Bursa Malaysia 100 Index.
The FTSE Bursa Malaysia 100 Index will comprise the top 100 large and mid cap companies on the Main Board by market capitalisation.
The FTSE Bursa Malaysia Fledgling Index meanwhile will comprise the remaining two percent of the Bursa Malaysia Main Board with no liquidity screening.
Meanwhile, the chief operating officer of Bursa Malaysia, Omar Merican said that in designing the index series for phase one, the index universe will consist only of Bursa Malaysia Main Board companies.
Omar said the six new indices under the phase one are to be used for the basis of the creation of investment products such as Exchange Traded Funds (ETF), Listed Derivatives, including futures and over the counter products. - Bernama
