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FTSE Bursa Malaysia 28 October 2009 |
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In response to Malaysia’s market initiatives to enhance its capital market and liquidity the FTSE Bursa Malaysia Index Advisory Committee has approved for the full review of the FTSE Bursa Malaysia indices to be conducted semi-annually. With the implementation, the liquidity of applicable FTSE Bursa Malaysia constituents shall be reviewed every June and December. The changes to the Ground Rules of the FTSE Bursa Malaysia Index Series are as follows: • Section 3.3 Liquidity • Section 3.4 Liquidity – Median Liquidity Screening Methodology • Section 4.3 Rules for Insertion and Deletion at the Semi-Annual Review The enhancement has been incorporated in the Ground Rules in June 2009. However the implementation of the change will only impact the semi-annual review of June 2010 onwards. Previous Rule 3.3 Liquidity As part of 3.3.3 Securities which do not turnover at least 10% of their shares in issue, after the application of any free float restrictions, in the twelve months prior to an annual review in December by the FTSE Bursa Malaysia Advisory Committee, will not be eligible for inclusion in the indices for the next twelve months. An existing constituent failing to trade at least 10% of its shares in issue, after the application of any free float restrictions, in the twelve months prior to the annual review will be removed after the close of the index calculation on the third Friday in December. A security that is excluded because it fails the liquidity requirement will be excluded from all other indices for the period until the next December review. 3.4 Liquidity – Median Liquidity Screening Methodology As part of 3.4.1 A) Securities which do not turnover at least 0.05% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month in ten of the twelve months prior to a full market review, will not be eligible for inclusion in the Index. B) An existing constituent failing to trade at least 0.04% of its shares in issue (after the application of any investability weightings) based on its median daily trade per month for more than four of the twelve months prior to a full market review will be removed. 4.3 Rules for Insertion and Deletion at the Semi-Annual Review As part of 4.3.12 Buffers will be applied to provide stability in the selection of constituents of the FTSE Bursa Malaysia EMAS Index. Non-constituents that are ranked within the top 97% of the Main Board universe will be included in the FTSE Bursa Malaysia EMAS Index providing they meet the eligibility requirements as outlined in Section 3 (excluding Rule 3.4.1). Non-constituents that are ranked below the top 97% of the Main Board universe will be included in the FTSE Bursa Malaysia Fledging Index, providing they meet the requirements as outlined in Section 3 (excluding Rules 3.3.3 and 3.4.1). Existing constituents of the FTSE Bursa Malaysia EMAS Index that are ranked below 99% of the Main Board Universe will be excluded from the FTSE Bursa Malaysia EMAS Index and included in the FTSE Bursa Malaysia Fledgling Index, providing they meet the requirements as outlined in Section 3 (excluding Rules 3.3.3 and 3.4.1). FTSE Bursa Malaysia Fledgling constituents that rank between the 97% and 99% of the Main Board universe cut-offs will remain eligible for inclusion providing they meet the requirements as outlined in Section 3 (excluding Rules 3.3.3 and 3.4.1). The constituents of the FTSE Bursa Malaysia Small Cap Index and the FTSE Bursa Malaysia Fledgling Index will be reviewed annually in December. New Rule 3.3 Liquidity As part of 3.3.3 Liquidity Securities which do not turnover at least 10% of their shares in issue, after the application of any free float restrictions, in the twelve months prior to an semi-annual review in June and December by the FTSE Bursa Malaysia Advisory Committee, will not be eligible for inclusion in the indices until the next semi-annual review. An existing constituent failing to trade at least 10% of its shares in issue, after the application of any free float restrictions, in the twelve months prior to the semi-annual review will be removed after the close of the index calculation on the third Friday in June and December. A security that is excluded because it fails the liquidity requirement will be excluded from all other indices for the period until the next semi-annual review. 3.4 Liquidity – Median Liquidity Screening Methodology As part of 3.4.1 A) Securities which do not turnover at least 0.05% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month in ten of the twelve months prior to the semi-annual review, will not be eligible for inclusion in the Index. B) An existing constituent failing to trade at least 0.04% of its shares in issue (after the application of any investability weightings) based on its median daily trade per month for more than four of the twelve months prior to the semi-annual review will be removed. 4.3 Rules for Insertion and Deletion at the Semi-Annual Review As part of 4.3.12 Buffers will be applied to provide stability in the selection of constituents of the FTSE Bursa Malaysia EMAS Index. Non-constituents that are ranked within the top 97% of the Main Board universe will be included in the FTSE Bursa Malaysia EMAS Index providing they meet the eligibility requirements as outlined in Section 3 (excluding Rule 3.4.1). Non-constituents that are ranked below the top 97% of the Main Board universe will be included in the FTSE Bursa Malaysia Fledging Index, providing they meet the requirements as outlined in Section 3 (excluding Rules 3.3.3 and 3.4.1). Existing constituents of the FTSE Bursa Malaysia EMAS Index that are ranked below 99% of the Main Board Universe will be excluded from the FTSE Bursa Malaysia EMAS Index and included in the FTSE Bursa Malaysia Fledgling Index, providing they meet the requirements as outlined in Section 3 (excluding Rules 3.3.3 and 3.4.1). FTSE Bursa Malaysia Fledgling constituents that rank between the 97% and 99% of the Main Board universe cut-offs will remain eligible for inclusion providing they meet the requirements as outlined in Section 3 (excluding Rules 3.3.3 and 3.4.1).For index related enquiries or further information about FTSE please contact:
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