Index Components

Objectives Of The KLCI

1. To provide a performance benchmark for the Malaysian equity market;
   
2. To reflect performance of listed companies that are representative of the major sectors as in the Malaysian economy;
   
3. To reflect the growth and development in Malaysian corporate and economic sector.
4. 
   

KLCI Index Rules

1. Companies whose market capitalisation fall within the first two quartiles of the Main Board (MB) companies' market capitalisation will be considered for inclusion;
   
2. Companies whose annual volume fall within the first three quartiles of the MB companies' volume will be considered for inclusion;
   
3. Index constituents suspended for more than 3 calendar months will be excluded and are only eligible for inclusion after 6 calendar months from the date of suspension uplifted;
   
4. Affected companies pursuant to PN4, PN10, PN16 or PN17 are not eligible for inclusion. Index constituents so designated will be excluded;
   
5. Companies which are more than 50% owned by any KLCI constituent and which in fact are defined as subsidiaries under the Malaysian Companies Act are excluded.
   
6. Newly-listed companies will be considered for inclusion after a minimum period of 3 months from the date of listing. Newly listed companies in new industries may be considered for inclusion after a minimum period of 1 month from the date of listing
   
7. Where a new issue is more than 1.0% of the full capitalisation of MB, Bursa Malaysia may decide to include the new issue as a constituent of KLCI after 1 month of listing, subject to the volume traded for the month is within the first three quartiles.
   
8. Index constituents with two consecutive years of losses may be excluded;
   
9. The market capitalisation weighting of each sector within the KLCI shall not exceed 125% of the MB's sectoral weight to avoid over-representation of a particular sector;
   
10. Where the market capitalisation of companies to be included or excluded exceed 5% of the market capitalisation of the KLCI, the proposed index constituent changes may be carried out on a staggered basis. If a single constituent's market capitalisation exceeds the 5% rule, only that constituent will be included or excluded at any one effective date.
    
11. Where Bursa Malaysia considers that an exception should be made to any of the Index Rules, the exception granted shall not be deemed to create a precedent for future decisions.