THE FBM KLCI is set for its first major revamp in more than 17 years, with its constituent list to be expanded from 30 to 50 stocks.
Bursa Malaysia and FTSE Russell said the changes will be introduced in stages, beginning Dec 21, 2026.
The revision marks the first significant overhaul of the index methodology since July 2009, when the number of FBM KLCI constituents was cut from 100 to 30.
The expansion is aimed at improving the index’s representation of the broader Malaysian equity market.
The current 30-stock basket accounts for around 60% of the Main Market’s total capitalisation, while increasing the number of constituents to 50 is expected to raise coverage to approximately 70%.
As part of the changes, the FBM70 will also be renamed the FBM Mid Cap, with its number of constituents reduced from 70 to 50.
The FBM100, meanwhile, will retain its existing 100-stock composition.
The changes would also see the introduction of the Energy, REITs and Technology sectors into the index. The enhancements will be implemented in two phases.
The first phase or Tranche One will see the 20 newly added FBM KLCI constituents to be included at 50% of their final index weight during the Dec-26 review.
The second phase or Tranche Two will take place during the Jun-27 review, where the 20 new constituents will reach 100% of their final index weight.
According to Bursa and FTSE Russell, the phased implementation is meant to facilitate an orderly transition, helping to reduce concentrated trading flows and support efficient portfolio rebalancing by market participants.
Banks still dominate, but lower. Based on our estimates, Financial Services will still command the lion’s share of the FBM KLCI weightage, albeit reduced.
It will see a reduction of -5.85ppts from 41.88% currently to 36.03% by Tranche Two.
The Utilities sector is expected to decline by – 2.60ppts from 16.83% to 14.23% by Tranche Two.
Sectors that will now receive a fairer representation are Technology, from 0% to 3.21%, and Consumer Products & Services, rising from 4.44% to 6.91%.
The index enhancement comes in timely for PPB Group and MR DIY Group, which currently rank 36th and 37th respectively by full market capitalisation and would be at risk of deletion under the existing 30-stock KLCI ground rules.
The expansion to 50 constituents significantly improves their prospects of remaining in the benchmark, subject to meeting all eligibility requirements at the December review.—Aug 21, 2026
