KLCI to expand to 50 constituents in December review
The FBM KLCI will add 20 new companies in its December 2026 review, raising the benchmark from 30 to 50 constituents, Bursa Malaysia and FTSE Russell said in a joint statement on Thursday.
Source: The Edge Malaysia · August 20, 2026 at 11:44 PM · AI-assisted report
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KUALA LUMPUR, 21 AUGUST 2026 —
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The FBM KLCI will add 20 new companies in its December 2026 review, raising the benchmark from 30 to 50 constituents, Bursa Malaysia and FTSE Russell said in a joint statement on Thursday.
Market Impact
The new entrants will receive 50% of their final index weight at the December review, with the balance applied at the June 2027 review. The phased approach starts a decade after the last methodological change in July 2009, when the index shrank from 100 to 30 companies.
Bursa Malaysia Bhd chief executive officer Datuk Fad’l Mohamed said the expansion better reflects Malaysia’s economic landscape and highlights a wider range of local companies as the market evolves. FTSE Russell said a majority of respondents backed the proposal during public feedback gathered since March.
Simulations using end-June 2026 data show the expanded KLCI will include representation from technology, energy and real estate investment trust sectors for the first time. Concentration in financial services will moderate, and the index’s coverage of Main Market capitalisation will rise to 70% from about 60%.
The FTSE Bursa Malaysia Mid 70 Index, currently tracking the next 70 largest companies, will shrink to 50 constituents and be renamed the FTSE Bursa Malaysia Mid Cap Index. The change aligns the mid-cap benchmark with the new KLCI structure.
The phased weight implementation gives investors time to adjust portfolios without sudden rebalancing costs. Foreign funds that track the KLCI may need to reallocate holdings to match the new weightings once full representation takes effect in June 2027. The expanded index offers broader sector exposure, including technology and REITs, which may attract investors seeking a more diversified Malaysian benchmark.
Related: Bursa Malaysia · Kuala Lumpur