KARACHI: The Pakistan Stock Exchange (PSX) has replaced six companies in the Karachi Stock-30 Index (KSE-30) with an equal number of constituents as part of the re-composition exercise.
The re-composition has been carried out on the basis of the pre-requisites/ criteria of selection of companies, said a statement. The PSX has carried out the exercise of recomposition of KSE-30 Index for the review period from July 1, 2020 to December 31, 2020. The re-composed index, based on the prices of December 31, 2020 will be implemented w.e.f. March 15, 2021.
The six new constituents of KSE-30 are Attock Refinery Limited, Systems Limited, Ghandhara Industries Limited, Pioneer Cement Limited, Kot Addu Power Company Limited, and Dawood Hercules Corporation Limited.
The outgoing companies are Fauji Cement Company Limited, Hascol Petroleum Limited, Sui Northern Gas Pipelines Limited, National Bank of Pakistan, Bank Alfalah Limited, and Bank of Punjab.
KSE-30 Index includes the top 30 most liquid companies listed on PSX based on free float methodology. The constituents of KSE-30 include Engro Corporation Ltd, Lucky Cement Ltd, Oil & Gas Development Company Ltd, Fauji Fertilizer Company Ltd, Habib Bank Ltd, Hub Power Company Ltd, Pakistan Petroleum Ltd, Pak Oilfields Ltd, Engro Fertilizers Ltd, MCB Bank Ltd, United Bank Ltd, DG Cement Company Ltd, Pakistan State Oil Company Ltd, Searle Company Ltd, Maple Leaf Cement Ltd, Bank AL-Habib Ltd, Mari Petroleum Company Ltd, TRG Pakistan Ltd, Attock Refinery Ltd, Unity Foods Ltd, Systems Ltd, Meezan Bank Ltd, Ghandhara Industries Ltd, Nishat Mills Ltd, Pioneer Cement Ltd, Cherat Cement Company Ltd, Pak Elektron Ltd, International Steel Ltd, Kot Addu Power Company Ltd, and Dawood Hercules Corporation Ltd.
The primary objective of the KSE-30 Index is to have a benchmark by which the stock price performance can be compared to over a period of time. In particular, the KSE-30 Index is designed to provide investors with a sense of how large company’s scrips of the Pakistan’s equity market are performing.
KSE-30 Index is calculated using the “Free-Float Market Capitalisation” methodology. In accordance with methodology, the level of index at any point of time, reflects the free-float market value of 30 companies in relation to the base period.
The free-float methodology refers to an index construction methodology that takes into account only the market capitalization of free-float shares of a company for the purpose of index calculation.
