--- title: "KMI-30 Index: Methodology" description: "KMI-30 Index is maintained by Pakistan Stock Exchange and covers Pakistani Shariah-compliant blue-chip equity benchmark. How it weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/kmi-30/ source: "Swoopr Investment: https://www.getswoopr.com" --- # KMI-30 Index: What It Measures and How It Is Built ## Direct Answer > The KMI-30 Index is a rule-based measurement of Pakistani Shariah-compliant blue-chip equity benchmark, maintained by Pakistan Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The KMI-30 Index covers Pakistani Shariah-compliant blue-chip equity benchmark, within the Pakistan market. Pakistan Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The name states a target of 30 companies. A target is not a guarantee of the exact count on any given day: corporate actions, dual share classes and pending additions all move the real number around it. ## How constituents are weighted Free float market capitalization weighted, with each constituent capped at 12% of total index capitalization on the first day of composition and at every later recomposition. Surplus is redistributed to the remaining companies in proportion to their index capitalization. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion All six Shariah screens must pass: permissible core business, interest bearing debt under 37% of assets, non compliant investments under 33% of assets, non compliant income under 5% of revenue, illiquid assets of at least 25% of assets, and market price at least net liquid assets per share. Technical screens add 5% minimum free float and trading on 75% of days. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## How long a listing must exist first A formal listing history of at least two months on PSX and an operational track record of at least one financial year are required. A seasoning rule is why a large new listing does not appear in an index the week it starts trading. It is a deliberate lag, and it means an index can under-represent a fast-growing part of the market for months at a time. ## When the membership is revised Recomposed semi-annually after the Shariah compliant list arrives from Al Meezan, with revisions on 15 May and 15 November. Prices and free float from 31 March and 30 September are used. Free float is updated only at recomposition even though companies report it quarterly. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people The index is calculated on a total return basis: cash dividends are adjusted through the divisor. Ranking for the top 30 gives 50% to free float capitalization and 50% to impact cost. ## References - [Pakistan Stock Exchange: Pakistan Stock Exchange, KMI 30 Index Methodology (KSE Meezan Index)](https://www.psx.com.pk/psx/themes/psx/uploads/KMI_30-Index-(New-Broucher).pdf), as published 2023. Every rule described on this page is taken from this document. ## Current KMI-30 Index constituents Pakistan Stock Exchange publishes and licenses the KMI-30 Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Pakistan Stock Exchange: official KMI-30 Index page](https://www.psx.com.pk/psx/product-and-services/indices) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the KMI-30 Index? Pakistan Stock Exchange maintains the KMI-30 Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the KMI-30 Index measure? It measures Pakistani Shariah-compliant blue-chip equity benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current KMI-30 Index constituents? Pakistan Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.