KSE-100 Index
The KSE-100 is the Pakistan Stock Exchange's benchmark index, tracking 100 of the largest companies by free-float market capitalisation and serving as the headline gauge of how the Pakistani stock market is performing.
The KSE-100 Index is the main benchmark of the Pakistan Stock Exchange (PSX). Introduced in November 1991 with a base value of 1,000 points, it tracks 100 companies and is the number most people mean when they say "the market was up today" in Pakistan. When a news headline reports that the PSX gained or lost a certain number of points, it is almost always quoting the KSE-100.
How the 100 companies are chosen
The index uses a two-step selection rule designed to keep it representative of the whole market rather than just the biggest names:
- Sector leaders first. The largest company by market capitalisation in each PSX sector is automatically included. This guarantees every sector of the economy is represented.
- Largest of the rest. The remaining slots are filled by the biggest companies by free-float market capitalisation, regardless of sector, until the list reaches 100.
The constituents are reviewed and rebalanced twice a year, so a company that shrinks can drop out and a fast-growing one can be added.
How the index is weighted: free float, not total size
The KSE-100 is a free-float market-capitalisation-weighted index. "Free float" means only the shares actually available for public trading are counted — shares locked up by founders, governments, or strategic holders are excluded. A company therefore moves the index in proportion to its tradeable size, not its paper size. The simplified example below shows how three companies of different free-float values contribute different weights:
| Company | Free-float market cap (PKR bn) | Index weight |
|---|---|---|
| Company A | 400 | 40% |
| Company B | 350 | 35% |
| Company C | 250 | 25% |
| Total | 1,000 | 100% |
Because the weighting is free-float-based, a 1% move in a heavily weighted company nudges the KSE-100 far more than a 1% move in a small one. This is why a handful of large banks, energy, and fertiliser companies can drive most of the index's daily change.
Why it matters to investors
- A single performance gauge. Instead of tracking hundreds of stocks, you can watch one number to judge overall market direction.
- A benchmark to beat. Investors and funds compare their own returns against the KSE-100 to see whether they are outperforming the market.
- The basis for index funds. Several mutual funds in Pakistan simply track the KSE-100, letting investors buy the whole market in one product.
Working with the KSE-100 on PSX Algos
On PSX Algos you can build a trading strategy without writing any code — set conditions like "RSI below 30 and volume surging," then backtest the idea against the KSE-100 universe across a decade of PSX history to see how it would have performed. From there you can deploy it as a live signal feed or run it as a paper-trading bot.
Build a KSE-100 strategy →Frequently asked
What is the KSE-100 Index in simple terms?
It is the Pakistan Stock Exchange's benchmark index. It tracks 100 of the largest listed companies by free-float market capitalisation and is the headline number used to describe how the Pakistani stock market is doing on a given day.
How are companies selected for the KSE-100?
The largest company by market capitalisation in each sector is automatically included, and the remaining slots are filled by the biggest companies by free-float market capitalisation until the list reaches 100. Constituents are rebalanced twice a year.
When was the KSE-100 Index launched?
The KSE-100 was introduced in November 1991 with a base value of 1,000 points.
What is the difference between the KSE-100 and the KSE-30?
The KSE-100 tracks 100 companies and is the broad benchmark, while the KSE-30 tracks only the 30 most liquid companies using a pure free-float methodology. The KSE-100 is the more widely quoted gauge of overall market performance.