KSE-100 Index

KSE-100 INDEX

“Free-Float Market Capitalization”

shall now be used instead of
“Market Capitalization”.

2
 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 KSE-
100 Index is similar to other indicators that track various sectors of
country’s 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

Launched on full market capitalization and is

Method(s) of calculation now being shifted to free floated market
capitalization.

Base year 1991

No of scrips 100

Base index value 1000

Date of launch
1st November, 1991
 BRIEF ABOUT KSE-100 INDEX
List of Sectors
1. Open-End Mutual Funds 12. Automobile and Parts 23. Fixed Line Telecommunication
2. Oil and Gas 13. Beverages 24. Electricity
3. Chemicals 14. Food Producers 25. Gas Water and Multiutilities
4. Foresty and Paper 15. Household Goods 26. Commercial Banks
5. Industrial Metals and Mining 16. Leisure Goods 27. Non Life Insurance
6. Construction and Materials 17. Personal Goods 28. Life Insurance
7. General Industrials 18. Tobacco 29. Real Estate Investment &Services
8. Electronic and Electrical Equipment 19. Health Care Equipment and Services 30. Financial Services
9. Engineering 20. Pharma and Bio Tech 31. Equity Investment Instruments
10. Industrial Transportation 21. Media 32. Software & Computer Services
11. Support Services 22. Travel and Leisure 33. Technology Hardware & Equipment
 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.
 KSE-100 INDEX
Calculation Methodology
(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 XXX

Less: Shares held by Directors / Sponsors XXX
Government Holdings 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 27-
2012
Free Float
Serial Company Code Symbol Name Full Cap Weightage
Weightage
1 OGDC Oil & Gas Development Company Limited 21.45% 13.08%
2 FFC Fauji Fertilizer Company Limited 3.97% 9.06%
3 MCB MCB Bank Limited 4.77% 7.93%
4 PPL Pakistan Petroleum Limited 8.18% 7.05%
5 POL Pakistan Oilfields Limited 2.85% 5.41%
6 HUBC Hub Power Company Limited 1.52% 4.72%
7 ENGRO Engro Corporation Limited 1.53% 3.18%
8 ULEVER UniLever Pakistan Limited 3.51% 3.09%
9 UBL United Bank Limited 2.59% 2.69%
10 PSO Pakistan State Oil Company Limited 1.24% 2.31%
11 NBP National Bank of Pakistan Limited 2.29% 2.25%
12 LUCK Lucky Cement Limited 1.20% 2.00%
13 BAHL Bank AL Habib Limited 0.81% 1.86%
14 HBL Habib Bank Limited 3.63% 1.51%
15 FFBL Fauji Fertilizer Bin Qasim Limited 0.96% 1.39%
16 DGKC D. G. Khan Cement Co. Ltd. 0.60% 1.36%
17 PTC Pakistan Telecommunication Co. Ltd. 2.09% 1.34%
18 BAFL Bank Alfalah Limited 0.62% 1.28%
 Comparative of Existing KSE-100 &
FF KSE-100 as on September 27-
2012
Free Float
Serial Company Code Symbol Name Full Cap Weightage
Weightage
1 OGDC Oil & Gas Development Company Limited 21.45% 13.08%
2 FFC Fauji Fertilizer Company Limited 3.97% 9.06%
3 MCB MCB Bank Limited 4.77% 7.93%
4 PPL Pakistan Petroleum Limited 8.18% 7.05%
5 POL Pakistan Oilfields Limited 2.85% 5.41%
6 HUBC Hub Power Company Limited 1.52% 4.72%
7 ENGRO Engro Corporation Limited 1.53% 3.18%
8 ULEVER UniLever Pakistan Limited 3.51% 3.09%
9 UBL United Bank Limited 2.59% 2.69%
10 PSO Pakistan State Oil Company Limited 1.24% 2.31%
11 NBP National Bank of Pakistan Limited 2.29% 2.25%
12 LUCK Lucky Cement Limited 1.20% 2.00%
13 BAHL Bank AL Habib Limited 0.81% 1.86%
14 HBL Habib Bank Limited 3.63% 1.51%
15 FFBL Fauji Fertilizer Bin Qasim Limited 0.96% 1.39%
16 DGKC D. G. Khan Cement Co. Ltd. 0.60% 1.36%
17 PTC Pakistan Telecommunication Co. Ltd. 2.09% 1.34%
18 BAFL Bank Alfalah Limited 0.62% 1.28%
 Comparative of Existing
KSE-100 & FF KSE-100
Free Float
Serial Company Code Symbol Name Full Cap Weightage
Weightage
19 NML Nishat Mills Limited 0.56% 1.17%
20 NESTLE Nestle Pakistan Limited 5.36% 1.11%
21 KAPCO Kot Addu Power Company Limited 1.18% 0.98%
22 EFOODS Engro Foods Limited 1.50% 0.93%
23 KESC The Karachi Electric Supply Company Ltd. 0.41% 0.93%
24 HMB Habib Metropolitan Bank Limited 0.52% 0.87%
25 FATIMA Fatima Fertilizer Company Limited 1.39% 0.87%
26 MTL Millat Tractors Limited 0.50% 0.83%
27 APL Attock Petroleum Limited 0.96% 0.80%
28 ABL Allied Bank Limited 1.76% 0.73%
29 AKBL Askari Bank Limited 0.35% 0.72%
30 NRL National Refinery Limited 0.53% 0.70%
31 JSCL Jahangir Siddiqui & Company Limited 0.29% 0.67%
32 EFUG EFU General Insurance Company Ltd. 0.28% 0.65%
33 DAWH Dawood Hercules Corporation Limited 0.50% 0.62%
34 AICL Adamjee Insurance Company Limited 0.22% 0.59%
35 INDU Indus Motor Company Limited 0.57% 0.59%
36 SNBL Soneri Bank Limited 0.18% 0.58%
 Comparative of Existing
KSE-100 & FF KSE-100
Free Float
Serial Company Code Symbol Name Full Cap Weightage
Weightage
37 NIB NIB Bank Limited 0.77% 0.48%
38 PSEL Pakistan Services Limited 0.16% 0.46%
39 SSGC Sui Southern Gas Company Ltd. 0.54% 0.45%
40 ABOT Abbott Laboratories (Pakistan) Limited 0.53% 0.44%
41 ATRL Attock Refinery Limited 0.30% 0.44%
42 AHCL Arif Habib Corporation Limited 0.34% 0.43%
43 PKGS Packages Limited 0.29% 0.42%
44 ICI ICI Pakistan Limited 0.43% 0.40%
45 PICT Pakistan International Container Terminal 0.47% 0.39%
46 JDWS JDW Sugar Mills Limited 0.17% 0.36%
47 THALL Thal Limited 0.28% 0.35%
48 PGF PICIC Growth Fund 0.10% 0.34%
49 PAKRI Pakistan Reinsurance Compnay Limited 0.17% 0.34%
50 IGIIL IGI Insurance Limited 0.24% 0.34%
51 SNGP Sui Northern Gas Pipelines Limited 0.32% 0.34%
52 FCCL Fauji Cement Company Limited 0.23% 0.33%
53 GLAXO GlaxoSmithKline Pakistan Limited 0.51% 0.33%
 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
Full M. Cap Index

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
FF KSE-100 Parallel Run
 Top 10 Weightage Reduction
in FF KSE-100
Symbol Name Full Cap Weightage Free Float Weightage

OGDC Oil & Gas Development Company Limited 21.45% 13.08%

NESTLE Nestle Pakistan Limited 5.36% 1.11%

HBL Habib Bank Limited 3.63% 1.51%

PPL Pakistan Petroleum Limited 8.18% 7.05%

COLG Colgate Palmolive (Pak) Limited 1.35% 0.28%

ABL Allied Bank Limited 1.76% 0.73%

SCBPL Standard Chartered Bank (Pakistan) Limited 1.28% 0.27%

RMPL Rafhan Maize Products Ltd. 1.14% 0.21%

PTC Pakistan Telecommunication Co. Ltd. 2.09% 1.34%

EFOODS Engro Foods Limited 1.50% 0.93%

 Top 10 Weightage
Increase in FF KSE-100

Symbol Name Full Cap Weightage Free Float Weightage

FFC Fauji Fertilizer Company Limited 3.97% 9.06%

HUBC Hub Power Company Limited 1.52% 4.72%

MCB MCB Bank Limited 4.77% 7.93%

POL Pakistan Oilfields Limited 2.85% 5.41%

ENGRO Engro Corporation Limited 1.53% 3.18%

PSO Pakistan State Oil Company Limited 1.24% 2.31%

BAHL Bank AL Habib Limited 0.81% 1.86%

LUCK Lucky Cement Limited 1.20% 2.00%

DGKC D. G. Khan Cement Co. Ltd. 0.60% 1.36%

BAFL Bank Alfalah Limited 0.62% 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.