KSE: 100-index rebased
methodology is a variant of the market capitalisation method currently in use for the KSE-100 index.
KARACHI:
In a letter to all members of the Karachi Stock Exchange (KSE), the Exchange’s Governing Board of Directors has notified a decision to approve the introduction of a new 100-index based on a free-float capitalisation method. The methodology is a variant of the market capitalisation method currently in use for the KSE-100 index. Instead of using 100 selected companies’ total outstanding shares to calculate the index, it will use shares that are readily available for trading. Details of the methodology and migration plan have been provided on the KSE website. It has been decided that the current and the new indices will be run parallel for the next 90 days to provide a comparison and for any adjustments or rebalancing that might be required by investors and funds in their portfolios due to the modification.
Published in The Express Tribune, June 16th, 2012.
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