FTSE Bursa Malaysia Kuala Lumpur Composite Index

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FTSE Bursa Malaysia Kuala Lumpur Composite Index
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
Capitalization-weighted
Website FBMKLCI

The FTSE Bursa Malaysia Kuala Lumpur Composite Index, also called FBMKLCI, is a capitalization-weighted stock market index, composed of the 30 largest companies on the Bursa Malaysia by market capitalization that meet the eligibility requirements of the FTSE Bursa Malaysia Index Ground Rules. The index is jointly operated by FTSE and Bursa Malaysia.

History[edit]

It was first introduced in 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 enchance the KLCI. FTSE Bursa Malaysia KLCI was one of the indices created to replace the KLCI. The new index 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 recognized index calculation formula to increase transparency as well as making the index more tradable.[2]

Constituents[edit]

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

Constituent Name Stock Code
AMMB Holdings 1015
Astro Malaysia Holdings 6399
Axiata Group 6888
British American Tobacco (Malaysia) 4162
CIMB Group Holdings 1023
Digi.com 6947
Felda Global Ventures Holdings 5222
Genting 3182
Genting Malaysia 4715
Hong Leong Bank 5819
Hong Leong Financial 1082
IHH Healthcare 5225
IOI 1961
IOI Properties Group 5249
Kuala Lumpur Kepong 2445
Malayan Banking 1155
Maxis 6012
MISC 3816
PETRONAS Chemicals Group 5183
Petronas Dagangan 5681
Petronas Gas 6033
PPB Group 4065
Public Bank 1295
RHB Capital 1066
SapuraKencana Petroleum 5218
Sime Darby 4197
Telekom Malaysia 4863
Tenaga Nasional 5347
UMW Holdings 4588
YTL Corp 4677

Eligibility[edit]

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

Free Float[edit]

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[edit]

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 January 2, 1977.[4]

See also[edit]

References[edit]

  1. ^ a b c "FTSE Bursa Malaysia KLCI Factsheet" (PDF). FTSE. 
  2. ^ a b FTSE Bursa Malaysia KLCI Index Research Paper, 2009, p. 1 
  3. ^ "Constituents - FTSE". Retrieved 31 March 2014. 
  4. ^ Bloomberg.com. KLCI:IND KUALA LUMPUR COMP INDEX

External links[edit]

The current components of the index can be found at Bursa Malaysia's website. [1]