Karachi Stock Exchange

Free-Float Based KSE-100 Index

KSE-100 Index, Background

What is KSE-100 Index?
The KSE100 index is a benchmark by which the stock price performance can
be compared to over a period of time. In particular, the KSE 100 is designed to
provide investors with a sense of how the Pakistan equity market is performing.
Thus, the KSE100 is similar to other indicators that track various sectors of the
Pakistan economic activity such as the gross national product, consumer price
index, etc.
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 tracks over 85% of
the total market capitalization of the companies listed on the Exchange.

Pros
KSE 100 was designed to provide investors with a sense of how the
Pakistan equity market has been performing.
When KSE-100 was made, it was intended to be used for tracking various
sectors of the Pakistan economic activity, similar to those such as
gross national product,
consumer price index, etc.

Cons
This Methodology is not as popular now as it used to be

KSE-100 Composition Basis (Existing)

The selection criteria for stock inclusion in the existing KSE-100 Index is based on
three main filters, namely Sector rule, Capitalization rule and Default rule. The top
sector companies may also qualify for inclusion on the basis of their market
capitalization.

Sector Rule
Largest market capitalization in each Karachi Stock Exchange sectors
excluding Open-end Mutual Fund Sector

The Largest Capitalization Rule

The remaining index places are taken up by the largest market
capitalization companies in descending order.

The Default Counter and Non Tradable Rule

Company which is on the Defaulters Counter and/or its trading is
suspended; declare Non-Tradable (i.e. NT) in preceding 6 months from the
date of re-composition shall not be considered in the re-composition of
KSE-100 Index
.

KSE Indices Family

KSE-100 Index introduced in November, 1991
Most recognized index of the KSE
Representation from all sectors of the KSE and includes the largest
companies on the basis of their market capitalization
Represents over 85% of the market capitalization of the Exchange.
Proposed to be migrated to Free-Float methodology shortly

KSE-30 Index introduced in September, 2006

Based on the Free Float Methodology
Includes only the top 30 most liquid companies listed on the KSE.

KMI-30 Index introduced in September, 2008

Tracks the 30 most liquid Shariah-compliant companies listed at KSE
weighted by free-float adjusted market capitalization.
12% cap on weights of individual securities.
Shariah Screening performed by Shariah Supervisory Board of Meezan
Bank (chaired by Justice (Retd.) Mufti Muhammad Taqi Usmani).

Why Free Float Methodology?

Places more weight on larger cap stocks
Large-cap and illiquid stocks can swing the index with relative
ease

Market representative indices around the world are

Selection linked to liquidity

Based on free float
Not capped
Are easily reproducible by portfolio managers

This is why KSE-100 Index is proposed to be shifted to FF methodology

FF based KSE-100
Pros

Places weight on stocks relative to their tradability

Impact of large-cap and illiquid stocks on index minimized
Encourage more listings
Motivation for companies to increase their free float
More market representative Index
Lesser volatility

Cons
Portfolio adjustment due to shift
Stakeholder awareness required about impact

Free Float Methodology

Select the
universe
from KSEAll Share

Rank all
companies
in selected
universe

Apply Free
Float
Adjustment

Test for
Liquidity

Calculate
Free Float
Weightage

Page 7

Methodology - Free Float Shares

Total Outstanding Shares

LESS

XXX

Shares held by Directors/sponsors

XXX

Government Holdings as promoters/acquirers/controllers

XXX

Shares held by Associated Companies (Cross holdings)

XXX

Shares held with general public in Physical Form

XXX

Shares held by directors, Govt. holding, associates and in physical form

XXX

FREE FLOAT SHARES

XXX

Free Float methodology considers only those shares which are available for
trading
Page 8

KSE-100 & FF KSE-100 Parallel Run

1. In the Index Experts Committee meeting no. 02 of 2011 it was almost concluded
that KSE-100 Index should be migrated to the Free Float Methodology
2. On the recommendation of the Committee, the KSE Governing Board in its
Meeting held in April 2012, approved the KSE-100 Free-Float Migration

3. The KSE Governing Board suggested parallel run of the two indices from 30th
May 2012 for the market to adjust to the revised methodology.

4. In light of the Index committee decision, the management started KSE-100

Index parallel run and started posting the result on the KSE website

KSE-100 Stock Selection Rule Change

3.

EXISTING KSE-100 STOCK SELECTION RULES: The current selection

criteria for stock inclusion in the recomposed KSE-100 Index are:

a) Rule # 1 Largest market capitalization in each Karachi Stock Exchange sectors

excluding Open-end Mutual Fund Sector;
a) Rule # 2 the remaining index places are taken up by the largest market
capitalization companies in descending order.
a) Rule # 3 Company which is on the Defaulters Counter and/or its trading is
suspended; declare Non-Tradable (i.e. NT) in preceding 6 months from the
date of re-composition shall not be considered in the re-composition of KSE100 Index.
NEW /REVISED STOCK SELECTION RULES: Rules 3(a) and 3(b) shall
now make use of free-float market capitalization instead of market

capitalization. Rule 3(c) will remain unchanged.

Free-Float KSE-100 (Actual & % of Full Cap)

Free float share July
31

Free Float
Weightage

Serial

Symbol Name

Number of Shares

Dreamworld Limited

32,000,000.00

14,600

0.05%

Unilever Pakistan Foods Limited

6,157,600.00

85,175

1.38%

Rafhan Maize Products Ltd.

9,236,400.00

401,380

4.35%

Pakistan Tobacco Company Limited

255,493,600.00

12,136,224

4.75%

Philip Morris (Pakistan) Limited

61,580,341.00

3,079,017

5.00%

Standard Chartered Bank (Pakistan) Limited

3,871,585,021.00

193,579,251

5.00%

Tandlianwala Sugar Mills Limited

117,706,300.00

5,885,315

5.00%

Ibrahim Fibres Limited

310,506,995.00

15,525,350

5.00%

Colgate Palmolive (Pak) Limited

36,329,496.00

1,816,475

5.00%

10

Nestle Pakistan Limited

45,349,551.00

2,267,500

5.00%

11

Al-Ghazi Tractors Limited

42,936,300.00

2,517,330

5.86%

12

Pakistan International Airline Corporation

2,877,217,467.00

184,687,649

6.42%

13

Bestway Cement Limited

578,201,974.00

41,112,301

7.11%

14

Atlas Honda Limited

82,725,229.00

7,193,504

8.70%

15

East West Insurance Company Limited

30,165,483.00

3,016,548

10.00%

16

Indus Dyeing & Manufacturing Co. Limited

18,073,731.00

1,807,373

10.00%

17

Habib Bank Limited

1,212,274,800.00

121,227,480

10.00%

18

Allied Bank Limited

946,342,009.00

94,634,201

10.00%

19

Meezan Bank Limited

903,367,448.00

90,336,747

10.00%

20

Grays of Cambridge Pakistan Limited

7,348,950.00

734,934

10.00%

Free-Float KSE-100 (Actual & % of Full Cap)

Number of Outstanding
Shares as on July 31st Free float share as
2012
on July 31st 2012

Free Float
Weightage

Serial

Symbol Name

21

Engro Foods Limited

756,200,935.00

78,876,812

10.43%

22

GlaxoSmithKline Pakistan Limited

263,196,097.00

37,010,662

14.06%

23

Fatima Fertilizer Company Limited

2,100,000,000.00

300,000,000

14.29%

24

Oil & Gas Development Company Limited

4,300,928,400.00

631,481,890

14.68%

25

NIB Bank Limited

10,302,851,164.00

1,545,427,675

15.00%

26

Byco Petroleum Pakistan Limited

977,858,737.00

146,678,811

15.00%

27

Pakistan Telecommunication Co. Ltd.

3,774,000,000.00

585,361,194

15.51%

28

Shell Pakistan Limited

85,609,864.00

13,414,224

15.67%

29

Engro Polymer & Chemicals Limited

663,468,788.00

112,460,449

16.95%

30

Abbott Laboratories (Pakistan) Limited

97,900,302.00

19,340,029

19.75%

31

Sui Southern Gas Company Ltd.

880,916,400.00

176,183,262

20.00%

32

Pakistan International Container Terminal

109,153,152.00

21,830,630

20.00%

33

Silkbank Limited

2,671,604,827.00

534,320,965

20.00%

34

Attock Petroleum Limited

69,120,000.00

13,824,000

20.00%

35

Mari Gas Company Ltd.

91,875,000.00

18,375,000

20.00%

36

Agritech Limited

392,430,000.00

78,486,000

20.00%

37

Pakistan Telephone Cables Limited

21,000,000.00

4,200,000

20.00%

38

Kot Addu Power Company Limited

880,253,228.00

176,050,646

20.00%

39

Attock Cement Pakistan Limited

86,595,439.00

17,319,088

20.00%

40

Pakistan Petroleum Limited

1,314,476,010.00

272,767,016

20.75%

Free-Float KSE-100 (Actual & % of Full Cap)

Number of Outstanding
Free float shares as
Shares as on July 31st
on July 31st 2012
2012

Free Float
Weightage

Serial

Symbol Name

41

Jubilee General Insurance Co. Limited

118,646,640.00

24,718,033

20.83%

42

UniLever Pakistan Limited

13,293,880.00

2,805,303

21.10%

43

Clariant Pakistan Limited

34,118,229.00

7,419,300

21.75%

44

National Bank of Pakistan Limited

1,850,011,184.00

438,215,913

23.69%

45

Sui Northern Gas Pipelines Limited

576,560,606.00

144,140,151

25.00%

46

United Bank Limited

1,224,179,688.00

306,044,922

25.00%

47

Indus Motor Company Limited

78,600,000.00

19,650,000

25.00%

48

Arif Habib Corporation Limited

412,500,000.00

103,125,000

25.00%

49

EFU Life Assurance Limited

85,000,000.00

21,250,000

25.00%

50

International Steels Limited

435,000,000.00

108,750,000

25.00%

51

Shifa International Hospitals Limited

50,513,800.00

12,628,450

25.00%

52

Pakistan Cables Limtied

28,462,376.00

7,115,594

25.00%

53

Lotte Pakistan PTA Limited

1,514,207,200.00

378,551,802

25.00%

54

Pak Suzuki Motor Company Limited

82,299,851.00

21,597,504

26.24%

55

Thal Limited

73,663,561.00

22,099,066

30.00%

56

Dawood Hercules Corporation Limited

481,287,124.00

144,386,135

30.00%

57

Fauji Cement Company Limited

1,331,115,839.00

399,334,751

30.00%

58

Tri-Pack Films Limited

30,000,000.00

9,000,000

30.00%

59

National Refinery Limited

79,966,560.00

25,389,649

31.75%

60

Siemens (Pak) Enginnering Co. Ltd.

8,247,037.00

2,677,781

32.47%

Free-Float KSE-100 (Actual & % of Full Cap)

Serial

Symbol Name

Number of Outstanding
Shares as on July 31st
2012

61

ICI Pakistan Limited

92,359,050.00

30,993,540

33.56%

62

IGI Insurance Limited

111,535,937.00

37,959,186

34.03%

63

Packages Limited

84,379,504.00

29,532,826

35.00%

64

Faysal Bank Limited

824,311,825.00

288,509,138

35.00%

65

Fauji Fertilizer Bin Qasim Limited

934,110,000.00

326,938,500

35.00%

66

Attock Refinery Limited

85,293,000.00

29,852,550

35.00%

67

Bata Pakistan Limited

7,560,000.00

2,646,000

35.00%

68

Ghani Glass Limited

106,683,122.00

37,339,093

35.00%

69

Security Papers Limited

41,149,992.00

16,459,996

40.00%

70

NetSol Technologies Limited

77,910,203.00

31,164,081

40.00%

71

MCB Bank Limited

919,860,126.00

367,944,049

40.00%

72

Lucky Cement Limited

323,375,000.00

129,350,000

40.00%

73

Habib Metropolitan Bank Limited

1,047,831,480.00

419,132,592

40.00%

74

Millat Tractors Limited

36,605,406.00

14,642,163

40.00%

75

Nishat Power Limited

354,088,500.00

142,674,723

40.29%

76

Nishat Chunian Power Limited

367,346,939.00

149,341,919

40.65%

77

Askari Bank Limited

813,071,084.00

353,509,167

43.48%

78

Murree Brewery Company Limited

19,052,087.00

8,408,367

44.13%

79

Feroze1888 Mills Limited

117,587,676.00

52,914,434

45.00%

80

Media Times Limited

178,851,010.00

80,482,955

45.00%

Free float shares

July 31

Free Float
Weightage

Free-Float KSE-100 (Actual & % of Full Cap)

Serial

Symbol Name

Number of Outstanding
Shares as on July 31st
2012

81

Engro Corporation Limited

511,269,370.00

230,071,246

45.00%

82

Pakistan State Oil Company Limited

171,519,600.00

78,168,486

45.57%

83

Pakistan Oilfields Limited

236,545,920.00

108,009,298

45.66%

84

Pakistan Reinsurance Compnay Limited

300,000,000.00

140,932,080

46.98%

85

Bank Alfalah Limited

1,349,156,250.00

674,578,125

50.00%

86

Nishat Mills Limited

351,599,848.00

175,799,924

50.00%

87

JDW Sugar Mills Limited

59,776,661.00

29,888,331

50.00%

88

The Karachi Electric Supply Company Ltd.

2,266,215,300.00

1,141,695,184

50.38%

89

Bank AL Habib Limited

1,010,386,745.00

555,712,708

55.00%

90

EFU General Insurance Company Ltd.

125,000,000.00

68,750,000

55.00%

91

Jahangir Siddiqui & Company Limited

763,285,323.00

419,806,928

55.00%

92

D. G. Khan Cement Co. Ltd.

438,119,097.00

240,965,515

55.00%

93

Fauji Fertilizer Company Limited

1,272,238,147.00

699,731,036

55.00%

94

Pakistan Services Limited

32,524,250.00

21,140,711

65.00%

95

Adamjee Insurance Company Limited

123,704,543.00

80,407,953

65.00%

96

Pace (Pakistan) Limited

278,876,604.00

181,269,793

65.00%

97

Soneri Bank Limited

902,918,513.00

722,334,796

80.00%

98

Hub Power Company Limited

1,157,154,400.00

925,723,510

80.00%

99

PICIC Growth Fund

283,500,000.00

226,800,000

80.00%

100

TRG Pakistan Limited

385,390,665.00

327,582,065

85.00%

Free float shares

July 31

Free Float
Weightage

30-Jul-12

28-Jul-12

26-Jul-12

24-Jul-12

22-Jul-12

20-Jul-12

18-Jul-12

16-Jul-12

14-Jul-12

12-Jul-12

10-Jul-12

8-Jul-12

6-Jul-12

4-Jul-12

2-Jul-12

30-Jun-12

28-Jun-12

26-Jun-12

24-Jun-12

22-Jun-12

20-Jun-12

18-Jun-12

16-Jun-12

14-Jun-12

12-Jun-12

10-Jun-12

8-Jun-12

6-Jun-12

4-Jun-12

2-Jun-12

31-May-12

29-May-12

KSE-100 & FF KSE-100 Parallel Run

15,000.00

Free Float index

14,500.00

Full M. Cap Index

14,000.00

13,500.00

13,000.00

12,500.00

Comparative of Existing KSE-100 & FF KSE-100

Serial

Company Code

Symbol Name

Full Cap
Weightage

Free Float
Weightage

OGDC

Oil & Gas Development Company Limited

21.11%

12.86%

PPL

Pakistan Petroleum Limited

7.55%

6.50%

NESTLE

Nestle Pakistan Limited

5.45%

1.13%

MCB

MCB Bank Limited

5.07%

8.41%

FFC

Fauji Fertilizer Company Limited

4.40%

10.04%

HBL

Habib Bank Limited

4.05%

1.68%

UBL

United Bank Limited

3.18%

3.29%

ULEVER

UniLever Pakistan Limited

3.02%

2.64%

POL

Pakistan Oilfields Limited

2.72%

5.16%

10

NBP

National Bank of Pakistan Limited

2.53%

2.48%

11

ABL

Allied Bank Limited

1.96%

0.81%

12

EFOODS

Engro Foods Limited

1.57%

0.68%

13

PTC

Pakistan Telecommunication Co. Ltd.

1.55%

1.00%

14

FATIMA

Fatima Fertilizer Company Limited

1.52%

0.90%

15

HUBC

Hub Power Company Limited

1.47%

4.88%

16

ENGRO

Engro Corporation Limited

1.41%

2.62%

17

SCBPL

Standard Chartered Bank (Pakistan) Limited

1.35%

0.28%

18

COLG

Colgate Palmolive (Pak) Limited

1.27%

0.26%

Comparative of Existing KSE-100 & FF KSE-100

Serial

Company Code

Symbol Name

Full Cap
Weightage

Free Float
Weightage

19

PSO

Pakistan State Oil Company Limited

1.24%

2.34%

20

LUCK

Lucky Cement Limited

1.18%

1.96%

21

KAPCO

Kot Addu Power Company Limited

1.16%

0.96%

22

FFBL

Fauji Fertilizer Bin Qasim Limited

1.04%

1.51%

23

APL

Attock Petroleum Limited

0.98%

0.81%

24

RMPL

Rafhan Maize Products Ltd.

0.95%

0.17%

25

BAHL

Bank AL Habib Limited

0.89%

2.03%

26

MEBL

Meezan Bank Limited

0.82%

0.34%

27

BAFL

Bank Alfalah Limited

0.74%

1.54%

28

NIB

NIB Bank Limited

0.70%

0.43%

29

GLAXO

GlaxoSmithKline Pakistan Limited

0.60%

0.35%

30

DGKC

D. G. Khan Cement Co. Ltd.

0.59%

1.35%

31

INDU

Indus Motor Company Limited

0.59%

0.61%

32

MTL

Millat Tractors Limited

0.55%

0.92%

33

HMB

Habib Metropolitan Bank Limited

0.55%

0.91%

34

NRL

National Refinery Limited

0.55%

0.72%

35

NML

Nishat Mills Limited

0.55%

1.13%

36

UPFL

Unilever Pakistan Foods Limited

0.54%

0.03%

Comparative of Existing KSE-100 & FF KSE-100

Serial

Company Code

Symbol Name

Full Cap
Weightage

Free Float
Weightage

37

SSGC

Sui Southern Gas Company Ltd.

0.52%

0.43%

38

PICT

Pakistan International Container Terminal

0.49%

0.41%

39

ABOT

Abbott Laboratories (Pakistan) Limited

0.48%

0.39%

40

ICI

ICI Pakistan Limited

0.47%

0.66%

41

IBFL

Ibrahim Fibres Limited

0.47%

0.10%

42

BWCL

Bestway Cement Limited

0.44%

0.13%

43

DREL

Dreamworld Limited

0.41%

0.00%

44

DAWH

Dawood Hercules Corporation Limited

0.41%

0.51%

45

AHCL

Arif Habib Corporation Limited

0.40%

0.41%

46

PAKT

Pakistan Tobacco Company Limited

0.39%

0.08%

47

AKBL

Askari Bank Limited

0.37%

0.67%

48

JSCL

Jahangir Siddiqui & Company Limited

0.34%

0.78%

49

LOTPTA

Lotte Pakistan PTA Limited

0.33%

0.34%

50

SNGP

Sui Northern Gas Pipelines Limited

0.32%

0.33%

51

ATRL

Attock Refinery Limited

0.31%

0.45%

52

SHEL

Shell Pakistan Limited

0.31%

0.20%

53

ATLH

Atlas Honda Limited

0.29%

0.11%

Comparative of Existing KSE-100 & FF KSE-100

Serial

Company Code

Symbol Name

Full Cap
Weightage

Free Float
Weightage

54

EFUG

EFU General Insurance Company Ltd.

0.28%

0.64%

55

AGTL

Al-Ghazi Tractors Limited

0.27%

0.07%

56

THALL

Thal Limited

0.26%

0.33%

57

TSML

Tandlianwala Sugar Mills Limited

0.26%

0.05%

58

FABL

Faysal Bank Limited

0.26%

0.38%

59

PMPK

Philip Morris (Pakistan) Limited

0.26%

0.05%

60

KESC

The Karachi Electric Supply Company Ltd.

0.26%

0.54%

61

MARI

Mari Gas Company Ltd.

0.25%

0.21%

62

PKGS

Packages Limited

0.25%

0.37%

63

BYCO

Byco Petroleum Pakistan Limited

0.24%

0.15%

64

FCCL

Fauji Cement Company Limited

0.24%

0.30%

65

PSMC

Pak Suzuki Motor Company Limited

0.24%

0.26%

66

ACPL

Attock Cement Pakistan Limited

0.24%

0.20%

67

AICL

Adamjee Insurance Company Limited

0.23%

0.62%

68

SNBL

Soneri Bank Limited

0.22%

0.74%

69

IDYM

Indus Dyeing & Manufacturing Co. Limited

0.21%

0.09%

70

IGIIL

IGI Insurance Limited

0.21%

0.30%

71

CPL

Clariant Pakistan Limited

0.20%

0.18%

Comparative of Existing KSE-100 & FF KSE-100

Serial

Company Code

Symbol Name

Full Cap
Weightage

Free Float
Weightage

72

JGICL

Jubilee General Insurance Co. Limited

0.20%

0.17%

73

EWIC

East West Insurance Company Limited

0.20%

0.08%

74

PIAA

Pakistan International Airline Corporation

0.19%

0.05%

75

EFUL

EFU Life Assurance Limited

0.18%

0.19%

76

EPCL

Engro Polymer & Chemicals Limited

0.18%

0.13%

77

JDWS

JDW Sugar Mills Limited

0.18%

0.37%

78

TRIPF

Tri-Pack Films Limited

0.18%

0.22%

79

SIEM

Siemens (Pak) Enginnering Co. Ltd.

0.17%

0.24%

80

NCPL

Nishat Chunian Power Limited

0.17%

0.28%

81

SILK

Silkbank Limited

0.17%

0.14%

82

PAKRI

Pakistan Reinsurance Compnay Limited

0.17%

0.32%

83

GHGL

Ghani Glass Limited

0.16%

0.23%

84

NPL

Nishat Power Limited

0.16%

0.26%

85

BATA

Bata Pakistan Limited

0.15%

0.22%

86

AGL

Agritech Limited

0.15%

0.12%

87

ISL

International Steels Limited

0.15%

0.15%

88

PSEL

Pakistan Services Limited

0.14%

0.39%

89

FML

Feroze1888 Mills Limited

0.12%

0.23%

Comparative of Existing KSE-100 & FF KSE-100

Serial

Company Code

Symbol Name

Full Cap
Weightage

Free Float
Weightage

90

PGF

PICIC Growth Fund

0.11%

0.37%

91

MUREB

Murree Brewery Company Limited

0.07%

0.13%

92

SEPL

Security Papers Limited

0.06%

0.10%

93

SHFA

Shifa International Hospitals Limited

0.05%

0.05%

94

TRG

TRG Pakistan Limited

0.04%

0.14%

95

PCAL

Pakistan Cables Limtied

0.04%

0.04%

96

NETSOL

NetSol Technologies Limited

0.04%

0.06%

97

MDTL

Media Times Limited

0.02%

0.04%

98

PACE

Pace (Pakistan) Limited

0.02%

0.04%

99

GRAYS

Grays of Cambridge Pakistan Limited

0.01%

0.00%

100

PTEC

Pakistan Telephone Cables Limited

0.00%

0.00%

Thank you!