Understanding
FTSE
THE FTSE BURSA MALAYSIA INDEX SERIES
Bursa Malaysia Bhd and FTSE Group launched the FTSE Bursa Malaysia Index Series (FBM), a new
suite of Malaysian tradable and benchmark indices. The decision to enter into a partnership with
FTSE, a global equity and bond index provider is the distinct benefits in collaborating with
FTSE.
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:-
- 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.
- Tradable - All stocks are liquidity screened to ensure stock availability and ease of trading
- Easy to understand - Index rules are transparent and easy to understand.
- Easy to anticipate - Clear and predictable rules
- Representative - Accurately reflects the broad underlying market
- Consistent - Given the same circumstances and data, the index will return the same result
Today, the family tree comprises of:
- FTSE Bursa Malaysia KLCI Index
- FTSE Bursa Malaysia EMAS Index
- FTSE Bursa Malaysia Mid 70 Index
- FTSE Bursa Malaysia Top 100 Index
- FTSE Bursa Malaysia Small Cap Index
- FTSE Bursa Malaysia Fledgling Index
- FTSE Bursa Malaysia EMAS Shariah Index
- FTSE Bursa Malaysia Hijrah Shariah Index
- FTSE Bursa Malaysia Second Board Index
- FTSE Bursa Malaysia MESDAQ Index
- FTSE Bursa Malaysia Palm Oil Plantation Index
- FTSE Bursa Malaysia Asian Palm Oil Plantation Index (USD)
- FTSE Bursa Malaysia Asian Palm Oil Plantation Index (MYR)
Click here for more information on the FTSE
Bursa Malaysia Index Series.
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