KL is set to revamp its composite stock index

KL is set to revamp its composite stock index

KUALA LUMPUR (AFP): The Kuala Lumpur Stock Exchange is set to revamp its barometer composite index (CI) next week by increasing the number of component stocks to 100 from 86, officials said yesterday.

The exchange said it would remove 15 stocks -- defined as "non-performing" in terms of market capitalization and turnover -- and add 29 new counters to the key stock index to provide a better gauge of the local market's movements from April 18.

It will also start providing market indices by the minute instead of at 15-minute intervals to allow investors more transparency in dealings, the exchange said in a statement.

Esso, Island and Peninsular, MBF Holdings and Oriental Holdings are among the 15 counters to be dropped, while Arab Malaysian Development, Diversified Resources, Hong Leong Bank, MBF Capital, Promet, Tan and Tan Developments, United Engineers and Westmont are among the 29 to be added.

The current CI was introduced in 1986, with each counter weighted according to the number of ordinary shares issued.

The exchange's total market capitalization grew by 11.63 billion ringgit (US$4.65 billion), or 2.29 percent, in the first quarter of this year from 508.48 billion ringgit in December.

The CI has fallen 15.18 points, or 1.56 percent, to 956.03 at Monday's close from 971.21 at the end of last year.