--- title: "KSE-30 Index: Methodology" description: "KSE-30 Index is maintained by Pakistan Stock Exchange and covers Pakistani blue-chip equity benchmark. How the index selects and weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/kse-30/ source: "Swoopr Investment: https://www.getswoopr.com" --- # KSE-30 Index: What It Measures and How It Is Built ## Direct Answer > The KSE-30 Index is a rule-based measurement of Pakistani 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 KSE-30 Index covers Pakistani 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 capitalisation weighted, with a base value of 10,000 points at June 2005. Cash dividends are not adjusted for, contrary to the KSE-100 practice; bonus and rights issues are adjusted through the divisor. 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 Not on the defaulters segment, suspended or non tradable in the prior six months; securities held in the central depository; free float of at least 5%; traded on 75% of trading days; and average impact cost of 1.5% or less. Open end and closed end mutual funds are excluded. 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 the PSX and an operating track record of at least one financial year. 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: June 30 data is revised on September 15 and December 31 data on March 15. Free float is updated using quarterly company submissions. 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 Half the final ranking comes from liquidity measured by impact cost, the cost of executing an order of a fixed rupee size (Rs 500,000), averaged over six months. A large company with high impact cost can lose out to a smaller, more liquid one. ## References - [Pakistan Stock Exchange: Pakistan Stock Exchange, KSE-30 Index Based on Free-Float brochure](https://www.psx.com.pk/psx/themes/psx/uploads/KSE-30_Index_updated_version.pdf), as published 2020. Every rule described on this page is taken from this document. ## Current KSE-30 Index constituents Pakistan Stock Exchange publishes and licenses the KSE-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 KSE-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 KSE-30 Index? Pakistan Stock Exchange maintains the KSE-30 Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the KSE-30 Index measure? It measures Pakistani 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 KSE-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.