FTSE Group (“FTSE”), the award-winning global index provider, and Bursa Malaysia Berhad (“Bursa Malaysia”) have announced that Malaysia Marine and Heavy Engineering will replace Malaysian Airline System in the FTSE Bursa Malaysia KLCI following the semi-annual review of the FTSE Bursa Malaysia Index Series today.
The index series is reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee. The committee is made up of leading market professionals who ensure the index review fully complies with a set of highly transparent and publicly available index rules.
As part of the FTSE Bursa Malaysia Index Series, the FTSE Bursa Malaysia KLCI is widely used by investors as the primary benchmark for the Malaysian market, and forms the basis of a wide range of investment products including the FTSE Bursa Malaysia KLCI ETF, FTSE Bursa Malaysia KLCI Futures (FKLI), FTSE Bursa Malaysia KLCI Options (OKLI) and other index-linked financial products including warrants.
The FTSE Bursa Malaysia KLCI reserve list, comprising the five highest ranking non-constituents of the index by market capitalisation, will be (in order of full market capitalisation) Nestle (M), UEM Land Holdings, IJM Corporation, Airasia and SP Setia. Companies in the reserve list will replace constituents that become ineligible as a result of corporate actions, before the next review.
At this review, the committee has also approved the following changes to other indices in the FTSE Bursa Malaysia Index Series.
FTSE Bursa Malaysia Mid 70 Index Changes:
|
Inclusions |
Exclusions |
1 |
Jaya Tiasa Holdings |
Batu Kawan |
2 |
Krisassets Holdings |
JCY International |
3 |
Malaysia Building Society |
Malaysia Marine And Heavy Engineering |
4 |
Malaysian Airline System |
Malaysian Pacific Industries |
5 |
Nestle (M) |
Shell Refining Co (F.O.M.) |
6 |
Tradewinds Plantation |
TA Enterprise |
FTSE Bursa Malaysia Hijrah Shariah Index Changes:
|
Inclusions |
Exclusions |
1 |
MMC Corporation |
Batu Kawan |
2 |
Nestle (M) |
Malaysia Marine And Heavy Engineering |
3 |
Sapuracrest Petroleum |
Shell Refining Co (F.O.M.) |
All constituent changes take effect at the start of business on 20 June 2011 and the next review will take place on 8 December 2011.
The FTSE Bursa Malaysia Advisory Committee today also approved a change to the liquidity screening rule for the series which will be applied following the December 2011 review. The enhanced liquidity method is based on a monthly median of daily liquidity for every trading day of the month, rather than a monthly total trading volume of free-float adjusted shares in issue. The new rule mirrors the liquidity screening used more broadly in index series’ such as the FTSE Global Equity Index Series, further aligning the series to global standards and providing investors with a more accurate representation of the true investability of companies in the FTSE Bursa Malaysia Index Series.
Further information on the FTSE Bursa Malaysia Index Series review including all additions and deletions as well as ground rules are available at www.ftse.com/bursamalaysia. Index codes and performance information is available at www.ftse.com/bursamalaysia and www.bursamalaysia.com.