What is the KSE-100 index?
The KSE-100 is the number people mean when they say the market went up or down. It follows 100 companies on the Pakistan Stock Exchange, weighted by the shares that are actually available to trade.
Short answer
The KSE-100 is the main index of the Pakistan Stock Exchange. It started on 1 November 1991 at 1,000 points and follows 100 companies: the largest company in each sector, plus the largest companies overall, all measured by free-float market capitalisation. PSX reviews the list twice a year.
How the 100 companies are chosen
PSX picks the companies with three rules, in this order:
- One seat per sector. In every sector except open-end mutual funds, the company with the largest free-float capitalisation gets a place.
- The rest by size. The remaining places go to the largest companies by free-float capitalisation, biggest first.
- No troubled names. A company on the defaulters' counter, or one whose trading was suspended or declared non-tradable in the six months before a review, is left out.
In PSX's index brochure that meant 35 sector seats and 65 seats by size. The sector rule is what makes the index broader than a plain top 100: even a small sector keeps one seat.
What free float means
Free float is the part of a company's shares that is actually available for trading. It leaves out shares held by controlling directors, sponsors and promoters, the government, and other holdings that are locked in and would not normally come to market.
That changes a company's weight. Take a made-up company worth Rs 100 billion whose sponsors hold three quarters of the shares. Its full market value is Rs 100 billion, but its free-float value is about Rs 25 billion, and the index counts it at the smaller figure. PSX rounds each company's free float into bands: a company with more than 75% and up to 80% free float, for example, is counted at a factor of 0.80.
The KSE-100 has worked this way since 15 October 2012. Before that, it used each company's full market capitalisation.
How the number moves
The index measures the free-float value of its 100 companies against a base value, on a scale where 1 November 1991 equals 1,000 points. Because it counts value, a company with a large free float moves the index more than a small one does, for the same percentage move in its price.
A move in points only means something next to the level of the index. A gain of 1,000 points is 1% when the index stands at 100,000, and 2% when it stands at 50,000.
PSX describes the KSE-100 as a total return index: it is adjusted for dividends, bonus shares and rights issues. A company paying a dividend does not, by itself, pull the index down.
How often the list changes
PSX recomposes the KSE-100 twice a year. It uses buffers at each review, so a company does not drop out and come back on a small change in its size. Changes are announced by PSX notice before they take effect.
The KSE-100 and PSX's other indices
- KSE-100 PR (price return): the same 100 companies and the same free-float method, but without cash dividends, so it shows price moves alone. PSX launched it on 30 June 2025, calculated back to a base of 6,931 points on 1 April 2009. The KSE-100 itself stays the benchmark.
- KSE-30: a narrower index of 30 large, actively traded companies. It is the index PSX watches for a market halt.
- KMI-30: 30 Shariah-compliant companies.
- KSE All Share: every listed company, not just 100.
When the news says "the market gained 1,000 points", it almost always means the KSE-100.
Quick answers
When did the KSE-100 start?
In November 1991, with a base value of 1,000 points.
What is the KSE-100 PR index?
A price-only version of the KSE-100: the same companies, with cash dividends left out. The KSE-100 itself counts them, which makes it a total return index.
What is the difference between the KSE-100 and the KSE-30?
The KSE-100 holds 100 companies, including the largest in each sector. The KSE-30 holds 30 large, actively traded companies, and it is the index that triggers a market halt.
Does the KSE-100 include every PSX company?
No. It holds 100 companies. The KSE All Share index covers every listed company.
Why did a big company get a small weight?
Because the index counts free float. A company whose shares are mostly held by sponsors or the government has a small free float, and so a small weight, whatever its full market value.