FBM KLCI to expand to 50 stocks in two-stage transition
AHAM Capital expects broader sector representation, including technology, while forecasting a manageable impact on existing constituents' weightings.
Malaysia's FBM KLCI will begin increasing its membership from 30 companies to 50 on December 21, 2026. AHAM Asset Management Bhd (AHAM Capital) expects the larger benchmark to better represent the domestic economy without causing major disruption to existing stock weightings.
The transition will initially give the 20 incoming constituents 50 per cent of their final index weight. Their weightings will rise to 100 per cent on June 21, 2027, completing the expansion.
David Loh, AHAM Capital's deputy head of equity (Malaysia), told Bernama that a wider selection of companies would allow more sectors to be reflected in the benchmark. He said technology stocks had previously performed well without that performance being captured by the FBM KLCI because they were not constituents.
Loh said adding the new companies would dilute the weightings of the current 30 members. He cited preliminary calculations by an index strategist suggesting the impact should be no higher than a high single digit, and said the staged approach was intended to limit disruption.
Alongside the KLCI expansion, the FBM 70 will shrink from 70 constituents to 50 and become the FTSE Bursa Malaysia Mid Cap Index. The FTSE Bursa Malaysia Top 100 Index will retain its 100 constituents.
