KUALA LUMPUR: The country's stock exchange has launched Bursa Malaysia Quality 50 Index (BMQ) and Bursa Malaysia Quality 50 Syariah Index (BMQ-S).

Unlike headline benchmarks that mainly track companies based on market capitalisation, the indexes profile listed companies that demonstrate comparatively stronger financial characteristics across profitability, capital structure and earnings quality.

"The launch marks a significant milestone in our index innovation journey. We are seeing financially resilient companies emerging across sectors, including technology companies which make up almost 18 per cent of both BMQ and BMQ-S," said Bursa Malaysia chief executive officer Datuk Fad'l Mohamed.

"These indexes provide reference points that reflect this broader growth landscape, ensuring that Malaysian companies with strong fundamentals are visible and accessible to investors, whilst also supporting broader participation in Malaysia's equity market," he added.

Each index comprises 50 companies from the Main Market and ACE Market that are not part of the FTSE Bursa Malaysia KLCI

Both BMQ and BMQ-S use the same index construction framework, with BMQ-S comprising only securities recognised as Syariah-compliant by the Securities Commission's Syariah Advisory Council.

The indexes will be reviewed twice a year to ensure they continue to reflect current market conditions and company performance.

Index values and constituent information will be available on Bursa's website.