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Understanding FTSE

Investing Basics

Understanding FTSE

The FTSE Bursa Malaysia Index Series

Bursa Malaysia Bhd and FTSE Group joined forces in 2005 to launch the FTSE Bursa Malaysia Index Series, a suite of tradable and benchmark indices. The FTSE Bursa Malaysia Index Series is designed to represent the performance of companies, providing investors with a comprehensive and complementary set of indices, which measure the performance of the major capital and industry segments of the Malaysian and regional market.

FTSE adopts international index construction standards which are transparent. Stocks will have to pass FTSE's basic requirements to be included into the index. The index design basics are as follows:-

  1. Investable
    All stocks are free float weighted to accurately represent the stocks available for investment. Strategic shareholdings such as by Directors and Founding Families, Government, Cross Holdings by related companies and Holdings subject to lock-in clauses will be excluded from free float screening.
  2. Tradable
    All stocks are liquidity screened to ensure stock availability and ease of trading.
  3. Transparent
    A clear and predictable set of Ground Rules provides transparency and enables easy understanding and anticipation of the management of the index series.
Today, the family tree comprises of:
  1. FTSE Bursa Malaysia KLCI Index
  2. FTSE Bursa Malaysia EMAS Index
  3. FTSE Bursa Malaysia Mid 70 Index
  4. FTSE Bursa Malaysia Top 100 Index
  5. FTSE Bursa Malaysia Small Cap Index
  6. FTSE Bursa Malaysia Fledgling Index
  7. FTSE Bursa Malaysia EMAS Shariah Index
  8. FTSE Bursa Malaysia Hijrah Shariah Index
  9. FTSE Bursa Malaysia ACE Index
  10. FTSE Bursa Malaysia Palm Oil Plantation Index
  11. FTSE Bursa Malaysia Asian Palm Oil Plantation Index (USD)
  12. FTSE Bursa Malaysia Asian Palm Oil Plantation Index (MYR)

Click here for more information on the FTSE Bursa Malaysia Index Series.