Inclusion of Pakistan Petroleum Limited (PPL) will reduce the weightage of Oil and Gas Development Company (OGDC) to 24 percent from 33 percent with the market capitalisation to increase by almost Rs 232 billion. The KSE-100 index has been recomposed once again and, as per the schedule, the new index will be applicable from April 1. As was widely expected the much-awaited entry of PPL into the KSE-100 index has taken place. Other companies included in the recomposed index are Bank Al Falah, Jahangir Siddiqui Investment Bank and Dawood Lawrencepur.
The inclusion of PPL will help the representation of oil and gas companies in the KSE-100 index to rise to over 50 percent from the current level of 45 percent.
Based on the newly recomposed index, the market capitalisation of the KSE-100 index would rise by approximately Rs 232 billion.
This is due to an increase of Rs 239 billion in market capitalisation (based on the closing prices of March 15) following inclusion of four new companies in the index. Of these, PPL will add Rs 216 billion, Bank Al Falah Rs 16 billion, while the rest belongs to JSIB and Dawood Lawrencepur.
The exclusion of Southern Electric, Rafhan Bestfoods, Tri Pack Films and Dewan Farooque Motors would cause a decline of Rs 7 billion in the KSE-100 market capitalisation. Therefore, the total impact in the KSE-100 capitalisation would be of Rs 232 billion.
30-COMPANY INDEX: The KSE is expected to constitute a new 30-company sensitive index comprising free float scrips from May.
After the press conference of Managing Director Moin Fudda here on Wednesday, KSE Deputy General Manager Zafar Abdullah said that the management has almost completed the exercise of constituting a new index for the local bourse.
He said that the new index is likely to start working from May and would be comprised of 30 companies and would reflect the movement of the listed companies. The main criteria of this sensitive 30-company index would be free float of scrips.
Zafar Abdullah said that the Oil and Gas Development Company's free float of shares available in the market is 200 million shares or 5 percent offloaded by the Privatisation Commission.
This free float would be part of the new index and similarly the available shares of other 29 companies would be listed on the sensitive index.
At present, NIFTY and Mumbai stock have 30 companies index, showing daily price fluctuation of the traded shares.
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