KUALA LUMPUR: Bursa Malaysia Bhd
today launched the Bursa Malaysia Quality 50 Index (BMQ) and the Bursa Malaysia Quality 50 Shariah Index (BMQ-S), its first in-house indexes based on financial performance.
The exchange said the BMQ and BMQ-S indexes profile listed companies that demonstrate comparatively stronger financial characteristics across profitability, capital structure, and earnings quality. These factors are measured through return on equity, debt-to-equity, and operating cash flow relative to profit after tax and minority interests, it added.
"Each index comprises 50 companies from the Main Market and ACE Market that are not part of the FTSE Bursa Malaysia KLCI (FBM KLCI), the market’s primary headline benchmark where a large share of market capitalisation and investor focus is concentrated," it said in a statement.
Bursa Malaysia chief executive officer, Datuk Fad'l Mohamed, said the exchange is seeing financially resilient companies emerging across sectors, including technology companies, which make up almost 18 per cent of both BMQ and BMQ-S.
"These indexes provide reference points that reflect this broader growth landscape, ensuring that Malaysian companies with strong fundamentals are visible and accessible to investors, whilst also supporting broader participation in Malaysia’s equity market,” he added.
According to Bursa Malaysia, both BMQ and BMQ-S use the same index construction framework, with BMQ-S comprising only securities recognised as Shariah-compliant by the Shariah Advisory Council of the Securities Commission Malaysia.
"To ensure the indexes reflect companies that are suitable for benchmarking and investment reference, selected companies must meet minimum requirements in terms of size and trading activity.
"The indexes will be reviewed twice a year to ensure they continue to reflect current market conditions and company performance," it noted. - Bernama
