BURSA LAUNCHES NEW SECTOR CLASSIFICATION
Move provides increased clarity and universality for investors, says Tajuddin
BURSA Malaysia has introduced five new sectors, removed four and enhanced its sectoral indices.
The move effectively aligned the exchange’s sector classification with internationally-recognised standards, it said.
“The new classification is intended to ensure that the bourse’s sectors and sectoral indices continue to represent the global equity market,” said chief executive officer Datuk Seri Tajuddin Atan at the launch of the reclassification, here, yesterday.
“This initiative ensures a more comprehensive, accurate and relevant classification of public-listed companies and provides increased clarity and universality to meet the needs of the investment industry.”
He said the new classification would enable investors and asset managers to make global comparisons.
The new sectors are energy, healthcare, telecommunications and media, transport and logistics, as well as utility.
Meanwhile, the hotel, infrastructure project companies, mining and trading or services sectors have been removed.
Three existing sectors and the corresponding indices will be broadened and renamed.
They are consumer products (renamed to consumer products and services), finance (renamed to financial services) and industrial products (renamed to industrial products and services).
The reclassification will also see the introduction of a twotiered structure, with public-listed companies classified within main sectors and sub-sectors.
Among the factors to determine sector classification will be revenue streams (taken from the public-listed companies’ audited accounts) as well as the direction and their future plans.