KUALA LUMPUR, Jan. 12 (Xinhua) -- Malaysia's stock exchange on Monday launched the Bursa Malaysia Quality 50 Index (BMQ) and the Bursa Malaysia Quality 50 Shariah Index (BMQ-S), marking the exchange's first in-house indices based on financial performance.
Bursa Malaysia said in a statement that unlike headline benchmarks that mainly track companies based on market capitalization, the BMQ and BMQ-S indices profile listed companies that demonstrate comparatively stronger financial characteristics across profitability, capital structure and earnings quality.
These factors are measured through return on equity, debt-to-equity ratio, and operating cash flow relative to profit after tax and minority interests.
"We are seeing financially resilient companies emerging across sectors, including technology companies which make up almost 18 percent of both BMQ and BMQ-S," said Fad'l Mohamed, chief executive officer of Bursa Malaysia.
According to him, these indices provide reference points that reflect a broader growth landscape, ensuring that Malaysian companies with strong fundamentals are visible and accessible to investors, while also supporting broader participation in Malaysia's equity market.
The indices will be reviewed twice a year to ensure they continue to reflect current market conditions and company performance, said the statement. ■