Karachi: A significant update has been announced for the KSE100 Index, affecting numerous corporations in the upcoming fiscal quarter. Starting from October 1, 2024, several companies will either join or exit the index, based on recent market evaluations and rule-based criteria.
Pakistan Stock Exchange Limited has completed the bi-annual re-composition of the KSE100 Index, covering the period from March 2024 to August 2024. This re-composition adheres to the stringent guidelines set for index constituents, which ensure that the index reflects accurate market representations.
Among the newcomers to the index are Kohinoor Spinning Mills Limited, JDW Sugar Mills Limited, Sazgar Engineering Works Limited, Air Link Communication Limited, Mehmood Textile Mills Limited, Atlas Honda Limited, and Honda Atlas Cars (Pakistan) Limited. These entries have been facilitated by the departure of companies such as Gadoon Textile Mills Limited, Habib Sugar Mills Limited, BankIslami Pakistan Limited, Century Paper & Board Mills Limited, Kohinoor Textile Mills Limited, Shifa International Hospitals Limited, and Saif Power Limited.
According to information available from the Pakistan Stock Exchange (PSX), the criteria for these changes are primarily based on sector performance and market capitalization, ensuring that the index remains a relevant benchmark for market performance. Specifically, sector-based rules prompted the replacement of textile and sugar companies, while changes driven by market capitalization rules affected sectors including automotive, engineering, and communications.
These strategic adjustments in the KSE100 Index reflect ongoing market dynamics and aim to maintain the index's integrity as a benchmark for the Pakistani market. The re-composition not only affects the companies involved but also influences investor perceptions and strategies in the evolving economic landscape of Pakistan.