Malaysia launches index for small-cap sharia-compliant stocks

KUALA LUMPUR, Oct 8 (Reuters) - The FTSE Group andBursa Malaysia Bhd launched an index to provide investors abenchmark for sharia-compliant investments in small-capcompanies on the Malaysian stock market.

"The FTSE Bursa Malaysia Small Cap Sharia Index wasdfeveloped in response to the needs of market practitioners, whonoted the lack of a benchmark to track the perfomance ofsharia-compliant small cap companies," said Bursa Malaysia in apress statement.

Constituents from the index will be screened and tested ontheir market capitalization, free-float and liquidity levels,based on a screening methodology provided by the SecuritiesCommission (SC).

The addition will complement two existing indices, the FTSEBursa Malaysia EMAS sharia index and FTSE Bursa Malaysia Hijrahsharia inddex.

Sharia-compliant equities account for 65 percent or 931billion ringgit of the total market capitalization on thebourse, accounting for 66.8 percent of total tade volume as ofJuly.

(Reporting By Al-Zaquan Amer Hamzah)