KARACHI: In a major step towards facilitating investors, stakeholders and market participants, Pakistan Stock Exchange (PSX) has launched its first fundamental index - PSX Dividend 20 Index.

The index is designed to track the performance of the top 20 dividend paying companies at PSX whereby the companies are ranked and weighted based on their trailing 12-month dividend yield.

Speaking at the launch of the Index, the MD and CEO, PSX, Farrukh H Khan said that Pakistan Stock Exchange is consistently innovating and launching new products and offerings to enhance the investor and market participant experience. The PSX Dividend 20 index is the 14thequity index in Pakistan’s stock market facilitating market participants in utilising these indices to evaluate their investment portfolios, he said. “By identifying high dividend yielding companies, we believe that this index will be particularly helpful for investors in the current economic conditions,” he added.

Speaking at the occasion, Chief Product Officer and Regional Head PSX, Hassan Raza said the addition of the PSX Dividend 20 index would serve as a valuable tool for market participants as it is designed to screen companies based on their cash dividend payouts.

This will enable market participants to select stocks of liquid companies in their portfolios which have the highest trailing 12 month dividend yield, he said. “I congratulate the PSX team for introducing this useful index in the stock market which will go a long way in aiding investors to assess and build their portfolios based on dividend paying companies”, he added.

On the launching ceremony of this new product, Raeda Latif, Head of Marketing and Business Development, PSX and Senior Manager Product Development, PSX Muhammad Hussain also briefed reporters about the PSX Dividend 20 Index.

Copyright Business Recorder, 2022