Main Market vs ACE Market: How Bursa Malaysia Indices Treat Each Board
The short answer
The FBM KLCI, FBM Small Cap and FBM EMAS are built from Main Market companies, while ACE Market companies sit in a separate FTSE Bursa Malaysia ACE Index [1]. So a headline Main Market index tells you nothing directly about ACE stocks, and ACE constituents are not screened for liquidity in the index rules [1].
Which index reflects the board your shares trade on?
Most explanations of the two boards focus on listing criteria. For an investor reading daily market news, a more useful question is: which index actually reflects the board my shares trade on?
The answer comes from the ground rules of the FTSE Bursa Malaysia Index Series. The version reviewed here is v6.1, March 2025 [1]. For a plain definition of each board, see Finworld’s Main Market and ACE Market glossary pages.
What do the key index names mean?
- Main Market indices: the FBM KLCI, Mid 70, Top 100, Small Cap and EMAS are all based on the main market [1].
- FTSE Bursa Malaysia ACE Index: an index comprising all the companies listed on the ACE Market that meet the eligibility requirements [1].
The series page also notes that the index family covers companies on both the Main and ACE Markets [2].
What do the rules say about each board?
The EMAS Index represents 98% of the full market capitalisation of eligible ordinary securities listed on the Main Market [1]. The KLCI is the largest 30 of those, the Mid 70 the next 70, and the Small Cap the rest [1].
ACE Market companies are eligible only for the separate ACE Index [1]. They do not enter the EMAS.
A further difference is the liquidity test. Securities in the series are tested for liquidity semi-annually, using the monthly median of daily trading volume, but the rule does not apply to the Fledgling Index or the ACE Index [1]. In other words, being in the ACE Index does not signal that a stock trades actively.
How do the two boards compare in index terms?
| Aspect | Main Market indices | ACE Index |
|---|---|---|
| Covered companies | Main Market companies meeting eligibility rules [1] | All companies listed on the ACE Market that meet eligibility rules [1] |
| Headline measures | KLCI, Mid 70, Top 100, Small Cap, EMAS [1] | FTSE Bursa Malaysia ACE Index [1] |
| Liquidity screening | Applied (except the Fledgling Index) [1] | Not applied [1] |
| Review timing | June and December [1] | June and December [1] |
| When a company is removed | KLCI and Mid 70 vacancies are filled from a reserve list [1] | No replacement is found [1] |
How should an investor read this?
If you hold a Main Market share, the KLCI shows only how the 30 largest eligible companies behaved [1]. The Small Cap or EMAS gives a broader view of that board.
If you hold ACE Market shares, the Main Market indices are not your benchmark. The ACE Index is closer, although it includes every ACE company that qualifies, big or small, active or quiet.
Because ACE constituents are not liquidity-screened for the index [1], thin trading is a practical consideration. Check volume and the size of the board lot before deciding that a price is meaningful.
Who should care about the difference?
- New investors can avoid the mistake of treating the KLCI as a measure of the whole market.
- Investors in smaller companies should know which benchmark applies and whether it is even a fair comparison.
- Anyone comparing a fund or portfolio with an index should check that the index covers the same board.
Hypothetical illustration: suppose Investor A holds shares in Company A, listed on the ACE Market, and compares its price move with the KLCI. The comparison says little, because the KLCI is built only from large Main Market companies. A fairer comparison would use the index that covers Company A’s board, and even then, assume Company A trades only occasionally, so its price may reflect a handful of transactions rather than broad interest.
Neither board is inherently better or worse. They serve different company sizes and stages, and risk varies company by company.
What practical steps can you take?
- Identify the board of each holding.
- Pick the index that matches that board for comparison.
- Review trading activity, not just price.
- Revisit your view after each semi-annual index review in June and December [1].
Finworld’s stock screener lets you browse by sector or index and filter on volume at end-of-day.
Why do board labels and index labels get confused?
A board is where a company is listed, while an index is a calculated measure built from a set of eligible companies [1]. The two are easy to mix up, and three mistakes are common:
- Treating the KLCI as “the market”, when it covers only the largest eligible Main Market companies [1].
- Assuming an ACE Market company belongs in a small-cap index, when ACE companies fall under the separate ACE Index [1].
- Reading a rise in a headline index as proof that every share on that board rose.
An index also says nothing about a company’s quality. It is a size-and-eligibility measure, so use it as context for the market and use company research for decisions about a particular share.
Frequently asked questions
Is the FBM KLCI an ACE Market index?
No. The KLCI is drawn from the main market, and ACE companies are covered by a separate ACE Index [1].
Are ACE Index constituents screened for liquidity?
No. The ground rules state that the liquidity screen does not apply to the Fledgling and ACE indices [1].
How often is the ACE Index reviewed?
The FTSE Bursa Malaysia Index Series is reviewed semi-annually in June and December [1].
Does the EMAS include ACE companies?
No. The EMAS is built from eligible Main Market securities [1].
Sources
- FTSE Russell (LSEG) — FTSE Bursa Malaysia Index Series Ground Rules, v6.1, March 2025 (index definitions, eligibility, semi-annual review)
- LSEG / FTSE Russell — FTSE Bursa Malaysia index series page (segments and factsheets)
Disclaimer: Finworld provides market education and research tools only. This is not investment advice. Market data is end-of-day.