100-Index computation: KSE holds presentation today

RECORDER REPORT

KARACHI: Karachi Stock Exchange (KSE) on Wednesday announced that it will arrange a presentation on upcoming change in the computation methodology of KSE-100 Index.

The presentation would be given to KSE members, investors, fund managers and all other market participants at KSE auditorium on Thursday (today).

According to a KSE notice sent to all members on Wednesday, the KSE-100 Index is currently being computed using full market capitalization weighted methodology, With an objective to make the KSE indices more qualitative and in-line with the global standards, the KSE is planning to shift the KSE-100 index to the ‘free-float methodology’ shortly.

The KSE-100 index is a market capitalization-based index maintained by the KSE. The KSE-100 Index was introduced in 1991 its comprises 100 companies selected on the basis of sector representation and highest market capitalization, which captures over 85 percent of the total market capitalization of the company listed on the Exchange. Due to its wide acceptance amongst the investors, the KSE-100 Index is regarded to be the pulse of the Pakistan’s stock market.

The presentation will outline the modalities of the Free-Float Migration, benefits for members, investors and fund managers and its implications for investors and fund managers, the notice added.