Karachi: The Pakistan Stock Exchange Limited has announced a re-composition of the JS Momentum Factor Index (JSMFI) as of June 30, 2025, following its established index rules. The update, which will take effect from July 7, 2025, includes significant changes to the lineup of companies constituting the index.
The changes involve the inclusion of ten new companies: Sui Southern Gas Company Limited, National Bank of Pakistan, Meezan Bank Limited, Habib Bank Limited, Faysal Bank Limited, National Foods Limited, PIA Holding Company Limited, Nishat Mills Limited, Treet Corporation Limited, and BankIslami Pakistan Limited. These companies replace Attock Refinery Limited, D.G. Khan Cement Company Limited, Engro Holdings Limited, Flying Cement Company Limited, Frieslandcampina Engro Pakistan Limited, K-Electric Limited, National Refinery Limited, Pakistan Refinery Limited, Pakistan Telecommunication Company Ltd, and Maple Leaf Cement Factory Limited in the index.
The changes are reflected in the new weights assigned to each constituent company within the index. Sui Southern Gas Company Limited leads with a weight of 20.00%, followed by National Bank of Pakistan at 17.80%, and Meezan Bank Limited at 12.96%. Other companies such as Habib Bank Limited and Faysal Bank Limited hold weights of 11.35% and 8.28% respectively. According to information available from the Pakistan Stock Exchange (PSX), these adjustments are part of a regular exercise to ensure the index reflects current market dynamics.
The JS Momentum Factor Index tracks companies based on certain performance metrics, and this re-composition is a routine activity conducted by the PSX to maintain the index's relevance and accuracy. The designated market category for this index remains unchanged.
Overall, the re-composition marks a big move for the index, characterized by the departure of companies primarily from the cement and energy sectors, and the introduction of entities with significant impact in the banking and finance sectors. These changes are expected to influence investor behavior as the market adjusts to the new composition.