FTSE Bursa Malaysia KLCI

FTSE Bursa Malaysia KLCI
Foundation
  • 4 April 1986 (as KLCI)
  • 6 July 2009 (as FBMKLCI)
[1]
Operator
[1]
Exchanges Bursa Malaysia
Constituents 30
Type Large cap
Market cap
  • RM509,019 million
  • (as of 28 February 2014)
[1]
Weighting method Capitalisation-weighted
Website www.ftse.com

The FTSE Bursa Malaysia KLCI, also known as the FBM KLCI, is a capitalisation-weighted stock market index, composed of the 30 largest companies on the Bursa Malaysia by market capitalisation that meet the eligibility requirements of the FTSE Bursa Malaysia Index Ground Rules. The index is jointly operated by FTSE and Bursa Malaysia.

History

It was first introduced on 4 April 1986 as the Kuala Lumpur Composite Index (KLCI), with a base value of 100, dated on 1 January 1977.

In 2006, Bursa Malaysia partnered with FTSE to provide a suite of indices for the Malaysian market, to enhance the KLCI. FTSE Bursa Malaysia KLCI was one of the indices created to replace the KLCI. The new dex was adopted on 6 July 2009, with the opening value taken from the closing value of the old KLCI on 3 July 2009.[2]

The enhancement will adopt the internationally recognised index calculation formula to increase transparency as well as making the index more tradable.[2]

Constituents

The 30 constituent companies of the FBMKLCI, at the close of trading on 20 December 2013:[3]

Constituent NameStock Code
AMMB Holdings1015
Astro Malaysia Holdings6399
Axiata Group6888
British American Tobacco (Malaysia)4162
CIMB Group Holdings1023
Digi.com6947
Hap Seng Consolidated3034
Genting3182
Genting Malaysia4715
Hong Leong Bank5819
Hong Leong Financial1082
IHH Healthcare5225
IOI1961
IOI Properties Group5249
Kuala Lumpur Kepong2445
Malayan Banking1155
Maxis6012
MISC3816
PETRONAS Chemicals Group5183
Petronas Dagangan5681
Petronas Gas6033
PPB Group4065
Public Bank1295
RHB Capital1066
SapuraKencana Petroleum5218
Sime Darby4197
Telekom Malaysia4863
Tenaga Nasional5347
UMW Holdings4588
YTL Corp4677

Eligibility

The two main eligibility requirements stated in the FTSE Bursa Malaysia Index Ground Rules are the free float and liquidity requirements.

Free Float

Each company is required to have a minimum free float of 15%. The free float excludes restricted shareholding like cross holdings, significant long term holdings by founders, their families and/or directors, restricted employee share schemes, government holdings and portfolio investments subject to a lock in clause, for the duration of that clause. A free float factor is applied to the market capitalisation of each company in accordance with the banding specified in the FTSE Bursa Malaysia Ground Rules. The factor is used to determine the attribution of the company’s market activities in the index.

Liquidity

A liquidity screen is applied to ensure the company’s stocks are liquid enough to be traded. Companies must ensure that at least 10% of their free float adjusted shares in issue is traded in the 12 months prior to an annual index review in December.

It contains 30 companies from the main market with approximately 900 to 1000 listed companies. The index has a base value of 100 as of 2 January 1977.[4]

See also

References

  1. 1 2 3 "FTSE Bursa Malaysia KLCI Factsheet" (PDF). FTSE.
  2. 1 2 FTSE Bursa Malaysia KLCI Index Research Paper (PDF), 2009, p. 1, archived from the original (PDF) on 23 November 2010
  3. ↑ "Constituents - FTSE". Archived from the original on 7 April 2014. Retrieved 31 March 2014.
  4. ↑ Bloomberg.com. KLCI:IND KUALA LUMPUR COMP INDEX

The latest information on the index and its components can be found on FTSE's website. FTSE Bursa Malaysia Index Series

A detailed list of the index components with description of each company, logo and link to its website can be found on ASEAN UP Top 30 companies from Malaysia’s KLCI

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.