FTSE Russell has teamed up with Bursa Malaysia to offer two new indices tracking mid- and small-cap Malaysian companies, the FTSE Bursa Malaysia MidS Cap Index and the FTSE Bursa Malaysia MidS Cap Shariah Index.
The new indices become the latest in the FTSE Bursa Malaysia Index Series.
The indices have been designed to serve as underlying references for index-linked investment products such as exchange-traded funds.
The FTSE Bursa Malaysia MidS Cap Index comprises of constituents from the FTSE Bursa Malaysia EMAS Index with a market capitalisation range of MYR 200 million to MYR 2 billion.
The index currently has 169 constituents, representing approximately $15bn of investable market capitalisation.
The FTSE Bursa Malaysia MidS Cap Shariah Index comprises all the members of the FTSE Bursa Malaysia MidS Cap Index that are Shariah compliant according to the Shariah Advisory Council screening methodology.
Datuk Seri Tajuddin Atan, CEO of Bursa Malaysia, commented: “The inclusion of two new mid- and small-cap indices into the FTSE Bursa Malaysia Index Series is in line with global trends where investors are now allocating their investment portfolios strategically to the mid- and small-cap equity segment.
“The mid- and small-cap stock offer attractive growth prospects and provide greater opportunity for active managers to make informed decisions within the sector. At Bursa Malaysia we aim to further grow the two new equity segments and continue to drive sustainability to our marketplace by bringing new investable products to the market.”
Jessie Pak, managing director, Asia, FTSE Russell, added: “We are delighted to expand FTSE Russell’s partnership with Bursa Malaysia with the launch of two new indices. Mid and small-cap companies are of increasing interest to investors around the world and these indices will provide benchmarks for the growing market segment in Malaysia.”
The indices will support initiatives from the Malaysian government to inject more liquidity into the mid and small-cap market segment, as well as aiding the Securities Commission’s efforts to boost the ETF industry in Malaysia