Malaysia launches index for small-cap sharia-compliant stocks
KUALA LUMPUR Oct 8 (Reuters) - The FTSE Group and Bursa Malaysia Bhd launched an index to provide investors a benchmark for sharia-compliant investments in small-cap companies on the Malaysian stock market.
"The FTSE Bursa Malaysia Small Cap Sharia Index was dfeveloped in response to the needs of market practitioners, who noted the lack of a benchmark to track the perfomance of sharia-compliant small cap companies," said Bursa Malaysia in a press statement.
Constituents from the index will be screened and tested on their market capitalization, free-float and liquidity levels, based on a screening methodology provided by the Securities Commission (SC).
The addition will complement two existing indices, the FTSE Bursa Malaysia EMAS sharia index and FTSE Bursa Malaysia Hijrah sharia inddex.
Sharia-compliant equities account for 65 percent or 931 billion ringgit of the total market capitalization on the bourse, accounting for 66.8 percent of total tade volume as of July. (Reporting By Al-Zaquan Amer Hamzah)