What Is FBM KLCI? Malaysia's Key Stock Market Index
FBM KLCI is one of the new terms in the stock market that we need to recognise and understand.
Once you start getting involved in the stock market world, it becomes your responsibility to learn the terms that are frequently used.
What Is FBM KLCI?
It comprises the 30 largest companies on Bursa Malaysia based on their market capitalisation.
How We Calculate Market Capitalisation
Market Capitalisation = Value of a stock
FBM KLCI serves as the benchmark to gauge whether Bursa Malaysia is trending upward or downward.
Top 5 Companies in FBM KLCI
Source: MPLUS ONLINE PLATFORM
From the image above, we can see that Maybank is #1 in market capitalisation at 104.088 billion. Its share price per unit is RM9.440.
#2 is Public Bank at 96.277 billion. Its share price per unit is RM24.880.
Third is Tenaga with a market capitalisation of 77.920 billion and a share price of RM13.760 per unit.
Fourth is PCHEM at 73.600 billion with a share price of RM9.270 per unit.
Last in the TOP #5 is CIMB Bank at 55.282 billion with a share price of RM5.800 per unit.
Conclusion
In other words, almost all 30 companies in the FBM KLCI are companies with a market capitalisation of RM10 billion and above.
These companies determine the movement of the FBM KLCI. When the majority of these 30 companies are profitable, the index rises for the day.
If many companies are in the red, the index will also be in the red for the day.
FAQ About FBM KLCI
What does FBM KLCI stand for?
FBM KLCI stands for FTSE Bursa Malaysia Kuala Lumpur Composite Index. It is the primary benchmark index for the Malaysian stock market, tracking the performance of the top 30 companies by market capitalisation on Bursa Malaysia.
How many companies are in the FBM KLCI?
The FBM KLCI comprises 30 of the largest companies listed on Bursa Malaysia, ranked by their market capitalisation. These are typically blue-chip companies with strong financial standing.
Why is FBM KLCI important for investors?
FBM KLCI serves as a barometer for the overall health of the Malaysian stock market. When the index rises, it generally indicates that the market is performing well. When it falls, it signals a downturn. Investors use it to gauge market sentiment and make informed decisions.
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