The Board of Directors of the Karachi Stock Exchange (KSE) in its meeting held on February 2, 2009, decided to maintain the current composition of KSE-30 Index till its next due date. In a notice sent to all members on Tuesday the KSE said that under the Re-Composition Rules, the KSE-30 Index is required to be re-composed biannually, and this Re-Composition is due with effect from February 15, 2009 on the basis of the review period from July 1, 2008 to December 31, 2008.
However, it has been noted by the board that the market did not operate in usual manner, and trading in a number of securities could not take place due to various measures, including changes in circuit breakers and placement of floor on prices of securities.
As a result thereof, the selection of scrips on the basis of the prerequisites ie, free-float and liquidity measured through impact cost would not be true reflective of the market trend and the methodology as well as the criteria for the selection of the scrips in the Index. The re-composition of the Index would, therefore, not achieve the desired objective.
In view of above, it has been decided that the existing KSE-30 Index will be maintained until next Re-Composition, due on August 15, 2009, to be based on the review period from January 1, 2009 to June 30, 2009, the notice said.
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