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FTSE Russell and Bursa Malaysia launch two new indexes

 

  • New indexes cover mid- and small-cap companies
  • Broad range of industry sectors covered
  • Support Malaysian government initiatives to promote mid-cap market segment

FTSE Russell and Bursa Malaysia have launched two new indexes, which will track mid and small-cap companies. The FTSE Bursa Malaysia MidS Cap Index comprises constituents from the FTSE Bursa Malaysia EMAS Index with a full market capitalisation range of MYR 200 million to MYR 2 billion, subject to buffers applied to provide stability in the selection of constituents at the semi-annual reviews. The FTSE Bursa Malaysia MidS Cap Shariah Index consists of all constituents of the FTSE Bursa Malaysia MidS Cap Index that are Shariah compliant according to the Shariah Advisory Council screening methodology.

The FTSE Bursa Malaysia MidS Cap Index currently has 169 constituents, representing approximately US$15 billion of investable market capitalisation. The indexes will support initiatives from the Malaysian government to inject more liquidity into the mid and small-cap market segment.

Jessie Pak, Managing Director, Asia, FTSE Russell, said:  

“We are delighted to expand FTSE Russell’s partnership with Bursa Malaysia with the launch of two new indexes. Mid and small-cap companies are of increasing interest to investors around the world and these indexes will provide benchmarks for the growing market segment in Malaysia.”

Datuk Seri Tajuddin Atan, Chief Executive Office, Bursa Malaysia Berhad said:

“The inclusion of two new mid and small-cap index into the FTSE Bursa Malaysia Index Series is in line with global trends where investors are now allocating their investment portfolio strategically to the mid and small cap equity segment. The mid and small cap stocks offer attractive growth prospects and provide greater opportunity for active managers to make informed decisions within the sector. At Bursa Malaysia’s end, we aim to further grow the two new equity segments and continue to drive sustainability to our marketplace by bringing new investable products to the market. The decade-long partnership between Bursa Malaysia and FTSE Russell have served both parties well, and we believe the new indexes will have a good following before long.”

Launched in 2006 in partnership with Bursa Malaysia, the FTSE Bursa Malaysia Index Series is a broad range of indexes covering all eligible companies listed on the Bursa Malaysia Main and ACE Markets. The indexes are designed to measure the performance of the major capital segments of the Malaysian market, dividing it into large-cap, mid-cap, small-cap, fledgling and Shariah-compliant market segments. The indexes enable market participants to measure and create products in these distinct segments of the Malaysian market.

The partnership also brings FTSE Russell’s FTSE4Good index methodology to the Malaysia market by introducing the FTSE4Good Bursa Malaysia Index which has been designed to identify Malaysian companies with recognised corporate responsibility practices.

More information on the FTSE Bursa Malaysia index series can be found on our website.

 

 

For further information:

 

Global Media

Lucie Holloway / Ed Clark

+44 (0)20 7797 1222

newsroom@lseg.com

 

Regional Contacts

Hong Kong: Fennie Wong

Sydney: Laura McCrackle

+852 2164 3267

+61 2 8823 3526

 

Notes to editors:

About FTSE Russell:

FTSE Russell is a leading global index provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $12.5 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit www.ftserussell.com 

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