This article is reproduced from the Bursa Pursuit website. It’ll be useful if you intend to take part in their Challenge Game which runs from 1 Oct 2007 until 30 Nov 2007.
Understanding FTSE
THE FTSE BURSA MALAYSIA INDEX SERIES
Bursa Malaysia Bhd and FTSE Group launched the FTSE Bursa Malaysia Index Series (FBM), a new suite of Malaysian tradable and benchmark indices. The decision to enter into a partnership with FTSE, a global equity and bond index provider is the distinct benefits in collaborating with FTSE.
FTSE adopts International Index Construction Standards which are transparent. Stocks will have to pass FTSE’s basic requirements to be included into the index. The index design basics are as follows:
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Investable – All stocks are free float weighted to accurately represent the stocks available for investment. Strategic shareholdings such as by Directors and Founding Families, Government, Cross Holdings by related companies and Holdings subject to lock-in clauses will be excluded from free float screenings
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Tradable - All stocks are liquidity screened to ensure stock availability and ease of trading
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Easy to understand - Index rules are transparent and easy to understand.
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Easy to anticipate - Clear and predictable rules
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Representative - Accurately reflects the broad underlying market
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Consistent - Given the same circumstances and data, the index will return the same result
Today, the family tree comprises of:
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FTSE Bursa Malaysia EMAS Index
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FTSE Bursa Malaysia Large 30 Index
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FTSE Bursa Malaysia Mid 70 Index
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FTSE Bursa Malaysia 100 Index
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FTSE Bursa Malaysia Small Cap Index
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FTSE Bursa Malaysia Fledgling Index
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FTSE Bursa Malaysia EMAS Shariah Index
- FTSE Bursa Malaysia Hijrah Shariah Index
FTSE Bursa Malaysia Family Tree
FTSE BURSA MALAYSIA EMAS INDEX
FTSE Bursa Malaysia EMAS Index represents 98% of the full market capital value of eligible, tradable Malaysian companies.
FTSE BURSA MALAYSIA EMAS SHARIAH INDEX (FBM Emas Shariah Index)
Designed to provide Malaysian investors with a broad benchmark for Shariah-compliant investment, Bursa Malaysia Bhd with FTSE Group launched the FTSE Bursa Malaysia EMAS Shariah Index on 22 January 2007.
Features:
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FBM Emas Shariah Index is a broad base benchmark index comprised of shariah compliant stocks.
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During trading hours this index is calculated at an interval of every 60 seconds.
- FBM Emas Shariah Index is derived from FBM Emas Index, comprising of stocks from FBM 30, 70, 100 and Small Cap index series which have been screened for its free float and liquidity.
- This index is based on the FTSE Bursa Malaysia EMAS Index and is screened according to the Securities Commission’s Shariah Advisory Council (SAC).
FTSE BURSA MALAYSIA HIJRAH SHARIAH INDEX (FBM Hijrah Shariah)
On 21 May 2007, FBM Hijrah Shariah index was launched targeting international investors with its triple screening methodology. Being a tradable index FBM Hijrah Shariah is suitable for launching structured products such as Exchange Traded Funds (ETFs)
Features:
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As a tradable index the index is calculated at an interval of every 15 seconds
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The Investable Universe is derives from FBM Emas Index and are subject to the following triple screening:
- FTSE’s screening for free float and liquidity
- Yasaar Ltd screen for shariah compliant
- SC’s Shariah Advisory Council screening for Shariah compliant
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