Bourse announces re-composition of KSE-30

Exercise based on review period of January 1 to June 30.

KARACHI: Seven companies have replaced an equal number of constituents in the Karachi Stock Exchange (KSE)-30 Index, as the KSE management announced the re-composition of the index covering the top 30 companies with effect from August 17.

The seven new constituents of the KSE-30 Index are Fauji Fertilizer Bin Qasim, Hascol Petroleum, Jahangir Siddiqui and Company, K-Electric, Pioneer Cement, The Searle Company and TRG Pakistan. The outgoing seven companies are Adamjee Insurance, Attock Refinery, Bank Al Habib, Bank Alfalah, GlaxoSmithKline Pakistan, Lafarge Pakistan Cement and Shell Pakistan.

The KSE management has carried out the re-composition exercise based on a review period of January 1 to June 30. The index is revised on a semi-annual basis.

The KSE has many indices such as 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 bourse. Its calculation methodology ensures that the level of index at any given point in time reflects the free-float market value - as opposed to 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.

Published in The Express Tribune, August 12^th,  2015.

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