KUALA LUMPUR: The FTSE Group and Bursa Malaysia Bhd has launched a new set of industry, supersector and sector indices to complement the existing FTSE Bursa Malaysia Index Series.
The new FTSE Bursa Malaysia EMAS Industry indices were designed to provide investors with a comprehensive set of tools for in-depth analysis of the Malaysian stock market, said Bursa Malaysia in a statement yesterday.
“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,” the exchange said in a statement yesterday.
The new set of 10 industry, 19 supersector and 39 sector indices could be used to execute investment strategies and to create index-linked financial products based on sector-specific criteria.
“As a result, investors will gain deeper granularity and better understanding of the sectors, including those that are driving market performance.
“Designed using the Industry Classification Benchmark (ICB), adopted as a global standard in stock, sector and industry classification, the indices will also enable investors to make attribution and cross border comparison between sectors and industries in Malaysia and other countries,” Bursa Malaysia said.
The exchange said the new FTSE Bursa Malaysia EMAS Industry indices would form part of the FTSE Bursa Malaysia EMAS universe and would be calculated on an end of day basis.
“Subscribers of the FTSE Bursa Malaysia Index Series will receive the new indices as part of their existing data package at no extra cost.
“The enhancement to the index series ground rules will take effect immediately and will also be applied to all new initial public offering eligible for inclusion within the FTSE Bursa Malaysia Index Series,” the Bursa Malaysia added.
It added that the free-float of existing constituents would be reviewed during the December 2011 index review. — Bernama