FTSE, Bursa Malaysia launch Shariah small cap index
10 Oct 2012
FTSE Group and Bursa Malaysia Bhd. have launched the FTSE Bursa Malaysia Small Cap Shariah Index to complement the existing FTSE Bursa Malaysia Shariah indices.
This new Shariah index is designed to provide investors with a precise benchmark for Shariah-compliant investment in Malaysian small cap companies. The FTSE Bursa Malaysia Small Cap Shariah Index was developed in response to the needs of market players who noted the lack of a benchmark to track the performance of Shariah-compliant small cap companies, according to a joint statement.
Constituents are selected from the universe of the FTSE Bursa Malaysia Small Cap Index according to the Malaysian Securities Commission's Shariah Advisory Council screening methodology.
The index is based on FTSE's methodology which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules governed by an independent index committee. It can be used as the basis of ETFs, derivatives and other index-linked products and performance benchmark.
The new FTSE Bursa Malaysia Small Cap Shariah Index is part of the FTSE Bursa Malaysia EMAS Shariah sphere, and will be calculated on an end-of-day basis, the statement said. Subscribers to the FTSE Bursa Malaysia Index Series will receive the new index as part of their existing data package at no extra cost.
Author: Penny Leung