Four companies replaced in KSE-30 Index

It is based on review period of July 1 to Dec 31, 2015

KARACHI: Four companies have replaced an equal number of constituents in the KSE-30 Index, as the Pakistan Stock Exchange (PSX) management announced the re-composition of the index covering the top 30 companies with effect from Monday.

The four new constituents of the KSE-30 Index are Adamjee Insurance Company, Byco Petroleum Pakistan, Dawood Hercules Corporation and Sui Southern Gas Company. The outgoing four companies are Honda Atlas Cars, Jahangir Siddiqui and Company, Pakistan Telecommunication Company and Pioneer Cement.



The PSX management has carried out the re-composition exercise based on the review period of July 1 to December 31, 2015. The index is revised on a semi-annual basis.

The PSX has many indices, such as the KSE-100 Index, KSE All-Share Index, KSE-30 Index, KMI 30, BK TI and OG TI, which track the performance of conventional as well as Shariah-compliant stocks based on the free-float market capitalisation methodology.

The KSE-30 Index was introduced in 2006 and includes the 30 most liquid companies listed on the PSX. Its calculation methodology ensures that the level of index at any given point in time reflects the free-float market value - as opposed to the full market capitalisation - of the top 30 companies in relation to the base period.



A company must have the minimum free-float of 5% of its total outstanding shares in order to qualify for the KSE-30 Index. This methodology identifies companies with actual liquidity in the market without taking into account the huge capitalisation of otherwise illiquid, tightly held stocks.

Published in The Express Tribune, February 16^th, 2016.

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