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Index IDEA: FTSE Bursa Malaysia Index Series reflects a decade of equity market growth

Index IDEA: FTSE Bursa Malaysia Index Series reflects a decade of equity market growth

To mark the recent ten year anniversary of their strategic partnership, Bursa Malaysia, one of the largest bourses in ASEAN, and global index provider FTSE Russell, examined Malaysia equity market developments in the last decade through the lens of the FTSE Bursa Malaysia Index Series.

The index series, introduced in June 2006 and designed to measure the performance of the major size and industry segments of the Malaysian and regional market, reflects a decade of strong growth for the Malaysian equity market relative to other developed global markets.

For example, the FTSE Bursa Malaysia Top 100 Index, which measures the performance of the 100 largest companies in Malaysia by full market capitalization, recorded an index return of 134.6% in the ten years ended June 30, 2016 compared with a 63.5% index return for the FTSE Developed Index for the same time period. And, for the year-to-date as of June 30, the Index has recorded an index return of 5.9% relative to a 1.0% return for the FTSE Developed Index.

Source: FTSE Russell. Data as of June 30, 2016. Past performance is no guarantee of future results. Please see the disclaimer at the end for important legal information.

In addition, sector changes within the FTSE Malaysia Top 100 Index in the last ten years highlight the changing nature of the Malaysian equity market. Over the decade ended June 30, 2016, the Oil & Gas (+6.0%), Telecommunications (+5.3%) and Healthcare (+4.3%) sectors had the largest increase in weight within the Index. The Consumer Services (-8.4%), Consumer Goods (-5.4%) and Utilities (-1.9%) sectors had the largest decrease in weighting. 

Source: FTSE Russell. Data as of June 30, 2016. Past performance is no guarantee of future results. Please see the disclaimer at the end for important legal information.


Jessie Pak, Managing Director, Asia, FTSE Russell:

“FTSE Russell indexes are recognised and chosen by exchange partners and investors globally as preferred tools for a variety of investment purposes.  Index innovation is driven by client needs and customer partnerships, allowing FTSE Russell to continually enhance the breadth, depth and reach of its offering.  We’re pleased that the FTSE Bursa Malaysia Index Series has become the leading benchmark for the Malaysia market, building on a decade of success of the collaboration between FTSE Russell and Bursa Malaysia.  We’re proud that exchanges and investors alike value our approach to index management and FTSE Russell continues to work with our clients to advance our expertise in calculating these vital market indicators.”


Datuk Seri Tajuddin Atan, Chief Executive Officer of Bursa Malaysia:

“The decade long collaboration with FTSE Russell has played a pivotal role in aiding Bursa Malaysia’s aspiration to be a regional player with international reach. Our indexes, which are in accordance with the international standards maintained by FTSE Russell, have gained further traction amongst investors worldwide, while our joint marketing efforts with FTSE Russell have provided the Exchange with increased global exposure and profiling. Bursa Malaysia is happy to have extended the collaboration with FTSE Russell to the ASEAN Exchanges, with the launch of the FTSE ASEAN Index Series in May 2014, and more recently, FTSE4Good ASEAN 5 Index. We hope that the synergy and momentum we have generated will continue to realise greater efficiencies and create new opportunities in the years to come.”

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© 2016 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.

Views expressed by Jessie Pak of FTSE Russell and Datuk Seri Tajuddin Atan of Bursa Malaysi are as of September 20th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the London Stock Exchange Group.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

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No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.

Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets.

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