FTSE BURSA MALAYSIA KLCI Elevating Malaysias Benchmark Index to - - PowerPoint PPT Presentation

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FTSE BURSA MALAYSIA KLCI Elevating Malaysias Benchmark Index to - - PowerPoint PPT Presentation

Aug 27, 2022 249 likes •381 views

FTSE BURSA MALAYSIA KLCI Elevating Malaysias Benchmark Index to Global Standards 6 July 2009 A PREFERRED LISTING & INVESTMENT DESTINATION Wider International Appeal Increased Investor Attention Efficient Infrastructure

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FTSE BURSA MALAYSIA KLCI

Elevating Malaysia’s Benchmark Index to Global Standards

6 July 2009

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A PREFERRED LISTING & INVESTMENT DESTINATION

Wider International Appeal Increased Investor Attention

Efficient Infrastructure

Bursa Trade Securities Direct Market Access Market Making Framework New Boards: Main & ACE Market Multi currencies Platform

Internationalised Products & Services

FTSE Bursa Malaysia Index Methodology

  • FTSE Bursa Malaysia KLCI
  • Thematic Indices – Shariah and Plantation

USD Crude Palm Oil Futures Commodity Murabahah House

Sound regulatory framework; high priority on investor protection

Underscored by

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KUALA LUMPUR COMPOSITE INDEX (KLCI)

200 400 600 800 1,000 1,200 1,400 1,600 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

KLCI Index Value

30 Jan 1990 Freq : 15 minutes 29 May 1992

  • Min. Volume

1000 lot p.a. 18 Apr 1995 Fix at 100 stocks Freq : 1 min. 19 Mar 1998 Enhance objectives to better track the economy 15 Dec 2005 Enhance rules to better track the market 4 Apr 1986 KLCI launch @ 189.96 pts

  • Representative of the Malaysian Stock Market
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INDEX STRATEGIC OBJECTIVES

FTSE BURSA MALAYSIA KLCI

Market Appeal

  • Continuity of Historical

Trend

  • Remain Representative of

the market

Robust Index

  • Tradable (Liquidity)
  • Investable (Free Float)
  • Transparency (Clearly

Defined Rules)

Historical Continuity

  • Exchange Traded

Derivatives

  • Exchange Traded

Funds

  • Structured Warrants
  • Index Linked Funds
  • Provide Strength and

Stability

  • Fund friendly to

promote creation of Index Linked Products

  • Closely track the pulse
  • f the Market

Global Reach

  • Competitive Market Place
  • Internationally-accepted

Index Methodology

  • Globally Relevant

Wider Investment Opportunities

  • Market driven index
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All listed companies

Select Universe Investable Universe

Free Float Adjustment

Minimum requirement 15%

Filter

ROBUST INDEX

Rank by full market capitalisation

Robust Index

Free Float Weighted

Tradable Universe

Liquidity Tested *

Minimum 10% annual turnover

  • f free float

shares

  • FTSE Bursa Malaysia Index Methodology – Transparent rules

* Except FBM Fledgling Index, FBM Second Board Index and FBM MESDAQ Index

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ARRIVAL OF FTSE BURSA MALAYSIA KLCI

  • A market driven robust index

Every 60 sec

International Methodology FBM I ndex Methodology

200 400 600 800 1,000 1,200 1,400 1,600 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

KLCI Index Value Every 15 sec

Large 30 Constituents

Market Appeal Global Reach Historical Continuity Robust Index Wider Investment Opportunities

  • alignment of

existing products

International Branding

FTSE BURSA MALAYSIA KLCI (Effective 6 July 2009)

100 Constituents

KLCI

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STATISTICAL ANALYSIS

KLCI FTSE Bursa Malaysia KLCI

Number of Constituents 100 30 Market Capitalisation Representation to Main Board 74% 64% Correlation to FTSE Bursa Malaysia EMAS (5Years) 99.4% 99.1% Volatility (3 yrs) 16.5% 17.0% Volatility (5 yrs) 14.2% 15.0%

Data @ 31 Dec 2008

Remains representative of the market

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INVESTMENT OPPORTUNITIES

FTSE Bursa Malaysia KLCI aligns the index linked products for a wider range of investable opportunities

FKLI OKLI Structured Warrants ETF Index Linked Funds FTSE FTSE BURSA MALAYSI BURSA MALAYSIA A KLCI KLCI

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FTSE Asia Pac Universe – ex Japan, N.Zealand & Aust.

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FTSE BURSA MALAYSIA INDEX SERIES

FTSE Bursa Malaysia Mid 70 Index FTSE Bursa Malaysia EMAS Index FTSE Bursa Malaysia Small Cap Index FTSE Bursa Malaysia Fledgling Index FTSE Bursa Malaysia Top 100 Index

Main Board

FTSE Bursa Malaysia MESDAQ Index FTSE Bursa Malaysia Second Board Index

Second Board MESDAQ Market

Thematic Indices*

  • Better profile to PLCs and more choices for investors

FTSE Bursa Malaysia KLCI Index Performance (26/6/06 – 31/12/08)

50 100 150 200 250 2006 2007 2008 FBM SCAP FBM Fledgling FBM Mid Cap FBM Large Cap

1 2 3 4 5 *Thematic Indices

1 FTSE Bursa Malaysia EMAS Shariah Index 2 FTSE Bursa Malaysia Hijrah Shariah Index 3 FTSE Bursa Malaysia Palm Oil Plantation Index 4 FTSE Bursa Malaysia Asian Palm Oil Plantation Index – USD 5 FTSE Bursa Malaysia Asian Palm Oil Plantation Index - MYR

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STRENGTHS OF FTSE BURSA MALAYSIA KLCI

KLCI will be known as FTSE Bursa Malaysia KLCI to provide global relevant, recognition and reach. FTSE Bursa Malaysia index calculation methodology – Free Float, Liquidity and transparent. Made up of primary market movers, better define market activities while remaining representative of the market. A smaller basket of 30 constituents, easier to manage and more appealing for product issuers to create market liquidity. Speed of calculation increased from every 60 seconds to every 15 seconds tracking the market pulse closely and more efficiently. Preserves the historical movements of the Malaysian stock market. ROBUST BAROMETER GLOBAL METHODOLOGY MARKET APPEAL INTERNATIONAL BRANDING CONTINUITY OF VALUES FASTER CALCULATION

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APPENDIX – Highlight on FKLI & OKLI

Trading Month Contract Type Contract Month Underlying Index a Feb 2009 – Apr 2009 2nd Quarter Sep 09 The trading of the contracts will be based on KLCI from 1 Feb 2009 until 3 Jul 2009, and subsequently based on FTSE Bursa Malaysia KLCI till expiry. b. May 2009 1st Quarter 2nd Quarter Sep 09 Dec 09 The trading of the contracts will be based on KLCI until 3 Jul 2009, and subsequently based on FTSE Bursa Malaysia KLCI till expiry c. Jun 2009 Next Month 1st Quarter 2nd Quarter Jul 09 Sep 09 Dec 09 The trading of the contracts will be based on KLCI until 3 Jul 2009, and subsequently based on FTSE Bursa Malaysia KLCI till expiry. d. Jul 2009 Spot Month Next Month 1st Quarter 2nd Quarter Jul 09 Aug 09 Sep 09 Dec 09 The trading of the contracts will be based on KLCI until 3 Jul 2009, and subsequently based on FTSE Bursa Malaysia KLCI till expiry.

  • Arising from the transition of KLCI to FTSE Bursa Malaysia KLCI on the 6 July 2009, the contract

specifications for FKLI and OKLI contracts that are created in the trading months as stated in the table below will be varied with effect from 1 February 2009