Calculation Method Index

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KSE-100 INDEX
Table of Contents
1.

Objective

....................................................................................................................2

2.

Brief about KSE-100 Index ..................................................................................................2

3.

Stock Selection Rules ...........................................................................................................3

4.

Calculation Methodology ......................................................................................................4

5.

Recomposition of the KSE-100 Index ...................................................................................6 5.1

Sector Rules ................................................................................................6

5.1.1

Time-Based Rule ..........................................................................................6

5.1.2

Value-Based Rule .........................................................................................6

5.2

Capitalisation Rules ....................................................................................7

5.2.1

Time-Based Rule ..........................................................................................7

5.3

Rules for New Issues ...................................................................................7

6.

Replacement of Stock in the Index ......................................................................................9

7.

Adjustment of Stock in the Index ........................................................................................ 11 7.1

Dividend .................................................................................................... 11

7.2

Bonus ........................................................................................................ 13

7.3

Dividend & Bonus ..................................................................................... 15

7.4

Right Issue ................................................................................................. 17

7.5

Dividend, Bonus & Right .......................................................................... 22

1

KSE-100 INDEX
1.

OBJECTIVE

The primary objective of the KSE100 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 100 is designed to provide investors with a sense of how the Pakistan equity market is performing. Thus, the KSE100 is similar to other indicators that track various sectors of the Pakistan economic activity such as the gross national product, consumer price index, etc.

2.

BRIEF ABOUT KSE-100 INDEX

The KSE-100 Index was intorduced in November 1999 with base value of 1,000 points. The Index comprises of 100 companies selected on the basis of sector representation and highest market capitalisation, which captures over 80% of the total market capitalisation of the companies listed on the Exchange. Out of the following 35 Sectors, 34 companies are selected i.e. one company from each sector (excluding Open-End Mutual Fund Sector) on the basis of the largest market capitalisation and the remaining 66 companies are selected on the basis of largest market capitalisation in descending order. This is a total return index i.e. dividend, bonus and rights are adjusted.

LIST OF SECTORS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Open-end Mutual Funds
Close-end Mutual Funds
Modarabas
Leasing Companies
Investment Banks/Inv. Cos./Securities Cos.
Commercial Banks
Insurance
Textile Spinning
Textile Weaving
Textile Composite
Woollen
Synthetic & Rayon
Jute
Sugar & Allied Industries
Cement
Tobacco
Refinery
Power Generation & Distribution

19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

2

Oil & Gas Marketing Companies
Oil &...
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