KSE reshuffles 30-share index

Consumer giants Nestle and Unilever join the index.

KARACHI: After the bi-annual re-composition review of the KSE-30 index, Dawood Hercules Chemicals, Unilever Pakistan and Nestle Pakistan will be joining the index, while Jahangir Siddiqui and Company, Bank Alfalah and Mari Gas Company will be excluded, said Karachi Stock Exchange (KSE) in a statement on Friday. The companies are expected to be instated on August 15.

The KSE-30 index is designed to provide investors with a sense of how large companies’ scrips in Pakistan’s equity market are performing.

The index uses ‘Free-Float Market Capitalisation’ to determine the companies in the index. In accordance with the methodology, the level of index at any point in time reflects the free-float market value of 30 companies in relation to the base period, the KSE website explains. The free-float methodology refers to an index construction methodology that takes into account only the market capitalisation of free-float shares of a company for the purpose of index calculation.

Published in The Express Tribune, August 13^th, 2011.