Monday, October 3, 2011

FTSE, Bursa launch new set of indices

KUALA LUMPUR: FTSE Group and BURSA MALAYSIA BHD [] launched a new set of industry, supersector and sector indices on Monday, Oct 3, to complement the current FTSE Bursa Malaysia Index Series.

In a joint statement on Monday, Oct 3, they said the new FTSE Bursa Malaysia EMAS Industry indices would provide investors with a comprehensive set of tools for in-depth analysis of the Malaysian stock market.

The new set of 10 industry, 19 supersector and 39 sector indices can be used to execute investment strategies and to create index-linked financial products based on sector-specific criteria.

'In conjunction with this extension of the existing FTSE Bursa Malaysia Index Series, the free-float methodology for the FTSE Bursa Malaysia Index Series has been reviewed and enhanced, to ensure the indices continue to provide the most accurate reflection of the Malaysian equity market opportunity,' they said.

It said the Industry Classification Benchmark (ICB) -- adopted as global standard in stock, sector and industry classification --'' would enable investors make cross border comparison between sectors and industries in Malaysia and other countries.

'The new FTSE Bursa Malaysia EMAS Industry indices form part of the FTSE Bursa Malaysia EMAS universe and will be calculated on an end of day basis,' the statement said.

In the report, the enhancement to the index series ground rules will take effect immediately and will also be applied to all new IPOs eligible for inclusion within the FTSE Bursa Malaysia Index Series.

Meanwhile, the free-float of existing constituents will be reviewed during the December 2011 index review.

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