FBM KLCI expansion to 50 stocks set for December

KUALA LUMPUR, 24 AUGUST 2026 —

Bursa Malaysia Bhd will broaden the FBM KLCI from 30 to 50 constituents in two phases starting December, reducing concentration risk and adding technology names, analysts said.

The exchange operator and FTSE Russell said the index will expand in two stages. By June 2027 the number of components will reach 50, with the first 10 additions effective from December.

CGSI Research estimates the financials weighting will fall from 42.7% to 39.4% in phase one and to 36.6% in phase two, based on end-June data. The technology sector’s share will rise from zero to 1.9%, then 3.4%, it said.

Under the new rules, the largest stock’s weighting will drop from 13.2% to 12.1%, then 11.1%. The combined weight of the top five stocks will ease from 50% to 42.1% by mid-2027.

Kenanga Research said the phased rollout halves the one-off “overhang” on sectors such as financials and utilities as passive funds rebalance around the change date. For financials, the 3.3 percentage point cut is equivalent to about five days of trading value, it said, noting the seven finance stocks in the index now trade around RM600 million daily.

“For financials, we believe the market impact is manageable,” Kenanga added.

The research house said the expanded sectors show low correlation with financials, which should reduce index volatility and force managers to make more deliberate sector choices. It also expects liquidity in the new stocks—ranked 31 to 50—to improve slightly, making them more attractive.

MBSB Research expects the FTSE Bursa Malaysia Index Series ground rules to be updated soon, particularly on the thresholds for additions and deletions. Currently, any stock rising to 25th place or higher is promoted, while those falling to 36th or below are demoted during the bi-annual reviews.

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