KSE-100 Index

KSE-100 INDEX
Free-Float Market Capitalization shall now be used instead of Market Capitalization.

OBJECTIVE
The primary objective of the eKSE-100 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 Index is designed to provide investors with a sense of how the Pakistan equity market is performing. Thus, the KSE100 Index is similar to other indicators that track various sectors of countrys economic activity such as GNP, CPI, etc.

What is KSE-100 Index

The KSE-100 Index was introduced in November 1991 with base value of 1,000 points. The Index comprises of 100 companies selected on the basis

of sector representation and highest market capitalization, which captures

over 90% of the total market capitalization of the companies listed on the Exchange. Out of 33 Sectors, 32 companies are selected i.e. one company from each sector (excluding Open-End Mutual Fund Sector) on the basis of the largest market capitalization and the remaining 68 companies are selected on the basis of largest market capitalization in descending order.
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KSE-100 Index
Method(s) of calculation
Launched on full market capitalization and is now being shifted to free floated market capitalization.

Base year No of scrips Base index value

1991 100 1000

Date of launch

1st November, 1991

BRIEF ABOUT KSE-100 INDEX

List of Sectors
1. Open-End Mutual Funds 2. Oil and Gas 3. Chemicals 12. Automobile and Parts 13. Beverages 14. Food Producers 23. Fixed Line Telecommunication 24. Electricity 25. Gas Water and Multiutilities

4. Foresty and Paper

5. Industrial Metals and Mining 6. Construction and Materials 7. General Industrials 9. Engineering 10. Industrial Transportation 11. Support Services

15. Household Goods

16. Leisure Goods 17. Personal Goods 18. Tobacco 20. Pharma and Bio Tech 21. Media 22. Travel and Leisure

26. Commercial Banks

27. Non Life Insurance 28. Life Insurance 29. Real Estate Investment &Services 30. Financial Services 31. Equity Investment Instruments 32. Software & Computer Services 33. Technology Hardware & Equipment

8. Electronic and Electrical Equipment 19. Health Care Equipment and Services

BRIEF ABOUT KSE-100 INDEX

Stock Selection Rules
The Selection Criteria for stock inclusion in the KSE-100 Index are: Rule # 1 Largest market capitalization in each of the 32 KSE Sectors excluding Open-end Mutual Fund Sector. Rule # 2 The remaining index places are taken up by the largest market capitalization companies in descending order. Rule # 3 Company which is on the Defaulters Segment and / or its trading is suspended, declared Non-Tradable (i.e. NT) in preceding 6 months from the date of re-

composition shall not be considered.

Calculation Methodology

KSE-100 INDEX

(Existing, based on Full Market Capitalization)

The KSE-100 Index is a basket of price and number of shares. The value of the basket is
regularly compared to a starting point or a base period. The base period of KSE-100 Index is November 1, 1991. To make the computation simple, the total market value of the base period has

been adjusted to 1,000 points.

The KSE-100 Index calculation at any time involves multiplication of share price and shares outstanding for each of the KSE-100 Index component stocks.

KSE-100 INDEX
Free-Float Methodology The KSE-100 Index shall now be calculated on the basis of free-float market

capitalization of companies instead of full market capitalization. The Rules for Composition and Re-composition of the Index shall remain unchanged. The only difference of the new Index is the selection and computation of the Index on the basis of free-float market capitalization instead of total market capitalization of the existing Index.

KSE-100 INDEX
Definition of Free-Float Free-float means proportion of total shares issued by a company that are readily available for trading at the stock exchanges. In generally excludes the shares held by Directors / Sponsors/ Promoters, Government Holding and other locked-in shares not

available for trading in the normal course.

KSE-100 INDEX
Calculation of Free-float Total Outstanding Shares Less: Shares held by Directors / Sponsors Government Holdings XXX XXX XXX

Shares held by Associated Companies

XXX
_____

Shares held with General Public in Physical Form XXX Free-Float XXX ---------

Selection Criteria for inclusion in KSE-100

The Selection Criteria for inclusion of companies in the Re-composed KSE-100 Index comprising

of the following two categories. Capitalization Rule:

The remaining 68 companies are taken up on the basis of market capitalization of companies in the descending order. Sector Rule: Largest market capitalization in each of the 32 Sectors of the Exchange, excluding Open-end Mutual Fund Sector.

Comparative of Existing KSE-100 & FF KSE-100 as on September 272012

Serial 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Company Code OGDC FFC MCB PPL POL HUBC ENGRO ULEVER UBL PSO NBP LUCK BAHL HBL FFBL DGKC PTC BAFL Symbol Name Oil & Gas Development Company Limited Fauji Fertilizer Company Limited MCB Bank Limited Pakistan Petroleum Limited Pakistan Oilfields Limited Hub Power Company Limited Engro Corporation Limited UniLever Pakistan Limited United Bank Limited Pakistan State Oil Company Limited National Bank of Pakistan Limited Lucky Cement Limited Bank AL Habib Limited Habib Bank Limited Fauji Fertilizer Bin Qasim Limited D. G. Khan Cement Co. Ltd. Pakistan Telecommunication Co. Ltd. Bank Alfalah Limited Full Cap Weightage 21.45% 3.97% 4.77% 8.18% 2.85% 1.52% 1.53% 3.51% 2.59% 1.24% 2.29% 1.20% 0.81% 3.63% 0.96% 0.60% 2.09% 0.62% Free Float Weightage 13.08% 9.06% 7.93% 7.05% 5.41% 4.72% 3.18% 3.09% 2.69% 2.31% 2.25% 2.00% 1.86% 1.51% 1.39% 1.36% 1.34% 1.28%

Comparative of Existing KSE-100 & FF KSE-100 as on September 272012

Serial 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Company Code OGDC FFC MCB PPL POL HUBC ENGRO ULEVER UBL PSO NBP LUCK BAHL HBL FFBL DGKC PTC BAFL Symbol Name Oil & Gas Development Company Limited Fauji Fertilizer Company Limited MCB Bank Limited Pakistan Petroleum Limited Pakistan Oilfields Limited Hub Power Company Limited Engro Corporation Limited UniLever Pakistan Limited United Bank Limited Pakistan State Oil Company Limited National Bank of Pakistan Limited Lucky Cement Limited Bank AL Habib Limited Habib Bank Limited Fauji Fertilizer Bin Qasim Limited D. G. Khan Cement Co. Ltd. Pakistan Telecommunication Co. Ltd. Bank Alfalah Limited Full Cap Weightage 21.45% 3.97% 4.77% 8.18% 2.85% 1.52% 1.53% 3.51% 2.59% 1.24% 2.29% 1.20% 0.81% 3.63% 0.96% 0.60% 2.09% 0.62% Free Float Weightage 13.08% 9.06% 7.93% 7.05% 5.41% 4.72% 3.18% 3.09% 2.69% 2.31% 2.25% 2.00% 1.86% 1.51% 1.39% 1.36% 1.34% 1.28%

Comparative of Existing KSE-100 & FF KSE-100

Serial 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Company Code NML NESTLE KAPCO EFOODS KESC HMB FATIMA MTL APL ABL AKBL NRL JSCL EFUG DAWH AICL INDU SNBL Symbol Name Nishat Mills Limited Nestle Pakistan Limited Kot Addu Power Company Limited Engro Foods Limited The Karachi Electric Supply Company Ltd. Habib Metropolitan Bank Limited Fatima Fertilizer Company Limited Millat Tractors Limited Attock Petroleum Limited Allied Bank Limited Askari Bank Limited National Refinery Limited Jahangir Siddiqui & Company Limited EFU General Insurance Company Ltd. Dawood Hercules Corporation Limited Adamjee Insurance Company Limited Indus Motor Company Limited Soneri Bank Limited Full Cap Weightage 0.56% 5.36% 1.18% 1.50% 0.41% 0.52% 1.39% 0.50% 0.96% 1.76% 0.35% 0.53% 0.29% 0.28% 0.50% 0.22% 0.57% 0.18% Free Float Weightage 1.17% 1.11% 0.98% 0.93% 0.93% 0.87% 0.87% 0.83% 0.80% 0.73% 0.72% 0.70% 0.67% 0.65% 0.62% 0.59% 0.59% 0.58%

Comparative of Existing KSE-100 & FF KSE-100

Serial 37 38 39 40 41 42 43 44 45 46 NIB PSEL SSGC ABOT ATRL AHCL PKGS ICI PICT JDWS THALL PGF PAKRI IGIIL SNGP FCCL GLAXO Company Code NIB Bank Limited Pakistan Services Limited Sui Southern Gas Company Ltd. Abbott Laboratories (Pakistan) Limited Attock Refinery Limited Arif Habib Corporation Limited Packages Limited ICI Pakistan Limited Pakistan International Container Terminal JDW Sugar Mills Limited Thal Limited PICIC Growth Fund Pakistan Reinsurance Compnay Limited IGI Insurance Limited Sui Northern Gas Pipelines Limited Fauji Cement Company Limited GlaxoSmithKline Pakistan Limited Symbol Name Full Cap Weightage 0.77% 0.16% 0.54% 0.53% 0.30% 0.34% 0.29% 0.43% 0.47% 0.17% 0.28% 0.10% 0.17% 0.24% 0.32% 0.23% 0.51% Free Float Weightage 0.48% 0.46% 0.45% 0.44% 0.44% 0.43% 0.42% 0.40% 0.39% 0.36% 0.35% 0.34% 0.34% 0.34% 0.34% 0.33% 0.33%

47
48 49 50 51 52 53

FF KSE-100 Parallel Run

Index Experts Committee (IEC) approved KSE-100 Index Free-Float shift in first half of 2012

KSE Governing Board ratified the IEC decision of KSE-100 Free-Float Migration in April 2012

KSE Management started parallel run of the two indices from 30th May 2012 on KSE website

KSE notified the market about the Board Decision vide Notice (N-2968) dated June 15th, 2012.

Stakeholders informed of awareness presentation vide Notice (N-3650) Dated August 8th 2012.

12,500.00

13,000.00

13,500.00

14,000.00

15,000.00

14,500.00

29-May-12 31-May-12 2-Jun-12 4-Jun-12 6-Jun-12 8-Jun-12 10-Jun-12 12-Jun-12 14-Jun-12 16-Jun-12 18-Jun-12 20-Jun-12 22-Jun-12 24-Jun-12 Free Float index

26-Jun-12
28-Jun-12 30-Jun-12 2-Jul-12 4-Jul-12 6-Jul-12 8-Jul-12 10-Jul-12 12-Jul-12 14-Jul-12 16-Jul-12 18-Jul-12 20-Jul-12 22-Jul-12 24-Jul-12 26-Jul-12 28-Jul-12 30-Jul-12 Full M. Cap Index

FF KSE-100 Parallel Run

Top 10 Weightage Reduction in FF KSE-100

Symbol
OGDC NESTLE HBL PPL COLG ABL SCBPL

Name
Oil & Gas Development Company Limited Nestle Pakistan Limited Habib Bank Limited Pakistan Petroleum Limited Colgate Palmolive (Pak) Limited Allied Bank Limited Standard Chartered Bank (Pakistan) Limited

Full Cap Weightage

21.45% 5.36% 3.63% 8.18% 1.35% 1.76% 1.28%

Free Float Weightage

13.08% 1.11% 1.51% 7.05% 0.28% 0.73% 0.27%

RMPL
PTC EFOODS

Rafhan Maize Products Ltd.

Pakistan Telecommunication Co. Ltd. Engro Foods Limited

1.14%
2.09% 1.50%

0.21%
1.34% 0.93%

Top 10 Weightage Increase in FF KSE-100

Symbol
FFC HUBC MCB POL ENGRO PSO BAHL LUCK DGKC BAFL

Name
Fauji Fertilizer Company Limited Hub Power Company Limited MCB Bank Limited Pakistan Oilfields Limited Engro Corporation Limited Pakistan State Oil Company Limited Bank AL Habib Limited Lucky Cement Limited D. G. Khan Cement Co. Ltd. Bank Alfalah Limited

Full Cap Weightage

3.97% 1.52% 4.77% 2.85% 1.53% 1.24% 0.81% 1.20% 0.60% 0.62%

Free Float Weightage

9.06% 4.72% 7.93% 5.41% 3.18% 2.31% 1.86% 2.00% 1.36% 1.28%

THANKS!

Who are Bulls & Bears

Those who buy shares in anticipation of increase in prices are commonly referred to as bulls And those who sell shares anticipating a fall in prices are referred to as bears.

BRIEF ABOUT KSE-100 INDEX

Adjustment of Dividend, Bonus and Right KSE-100 Index is a total return Index. Corporate actions by the companies such as declaration of Dividend, Bonus and Right are adjusted in the Index.