Bursa Malaysia, FTSE Russell To Enhance FBM KLCI, FBM 70 Methodologies
KUALA LUMPUR, Aug 20 (Bernama) -- Bursa Malaysia Bhd and London Stock Exchange Group’s (LSEG) wholly owned business division FTSE Russell will collaborate to enhance the methodologies of the FTSE Bursa Malaysia KLCI (FBM KLCI) and FTSE Bursa Malaysia Mid 70 (FBM 70) indices, following a public consultation conducted earlier this year.
In a joint statement, the companies said the FBM KLCI enhancement will be implemented through a phased approach, a well-established practice that FTSE Russell has applied successfully in major index transitions globally.
It said the approach supports an orderly transition by helping to reduce concentrated trading flows, minimise market impact and facilitate portfolio rebalancing by market participants.
The companies said the implementation will take place beginning Dec 21, 2026, in line with FTSE Russell’s index review schedule, with Phase 1 seeing 20 new constituents added to the FBM KLCI at 50 per cent of their final index weight.
In Phase 2, the 20 new constituents will reach 100 per cent of their final index weight, completing the transition to the enhanced FBM KLCI effective June 21, 2027.
It said the number of constituents in the FBM 70 will be reduced from 70 to 50 on Dec 21, 2026 in conjunction with the index review, with all constituent changes taking effect on the same date.
“The FBM KLCI will be expanded from 30 to 50 constituents, increasing its representation of Main Market capitalisation from approximately 60 per cent to 70 per cent, based on simulations using June 2026 data.
“Following the expansion of the FBM KLCI, the FBM 70 will be reduced from 70 to 50 constituents and renamed the FTSE Bursa Malaysia Mid Cap Index. The FTSE Bursa Malaysia Top 100 Index will remain unchanged at 100 constituents,” the exchanges said.
Bursa Malaysia chief executive officer Datuk Fad’l Mohamed said increasing representation across sectors and companies would enable the enhanced FBM KLCI to provide a broader reflection of Malaysia’s economic landscape while preserving the relevance investors expect from the country’s flagship benchmark.
“It will also increase the visibility of a wider range of Malaysian companies and ensure the index continues to evolve alongside the market it represents,” he said.
Meanwhile, FTSE Russell Group Head of Equity and Multi-Assets Gerald Toledano said the enhancements to the FBM KLCI represent an important step in ensuring Malaysia’s flagship benchmark remain representative, investable and aligned with the needs of domestic and international investors.
He said FTSE Russell looks forward to working closely with Bursa Malaysia and market participants to support a smooth transition and implementation of the changes.
-- BERNAMA