NEWS : FBM KLCI

-KLCI will be replaced by a new index, FBM KLCI as the mkt benchmark on July 6
-FBM KLCI will only consists of 30 stocks NOT 100 stocks. Therefore it will resemble the current FBM30 stock index
-the exact members of FBM KLCI will be known in June, when the routine half-yearly review is conducted on FBM30
-thereafter, FBM30 will be known as FBM KLCI after resetting its value
-above table > top and bottom 5 weight% difference compare to their repsective weight/% in KCLI currently ( source : THE EDGE)

Good news for the retail players.

1) easier to track and create a portfolio that matches the benchmark

2) you can buy FBM30etf, listed on BM and not via benchmark-tracking-unit trust, to get benchmark-exposure. Save cost. At moment, FBM30etf is rather inactive. (FBM30etf will be rebranded to use FBM KLCI as the indicators)

3) then you can hedge your positions using futures market, if you see downside. Imagine, any retail players can easily hedge their whole portfolio. Starting in June, FKLI's underlying is FBM30.

FBM KLCI ( index) > FBM KLCI( etf tradable like single stock) > FKLI (futures)