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KMI 30 Index

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KMI 30 Index
Foundation2008 (2008)
OperatorKarachi Stock Exchange Limited
ExchangesKarachi Stock Exchange
Constituents30
Weighting methodCapitalization-weighted index

KMI 30 Index is a stock market index on the Pakistan Stock Exchange in Pakistan of thirty companies that have been screened for Islamic Shariah criteria. The index was introduced in 2009[1] and the base period for this Islamic index is 30 June 2008. It was created as a joint effort by the Karachi Stock Exchange (now known as Pakistan Stock Exchange) and Al-Meezan Investment Bank (now known as Meezan Bank Limited).[2]

The index is calculated using free float market capitalization. At any point in time, the level of the index reflects the free float market value of selected Shariah-compliant shares in comparison with the base period. KMI-30 is recomposed semi-annually.

Selection criteria

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For any stock to be "Shariah compliant" it must meet all of the following six criteria:

  1. Business of the company
  2. Debt to total assets
  3. Illiquid assets to total assets
  4. Net liquid assets to share price
  5. Non-compliant investments to total assets
  6. Non-compliant income to total revenue

Constituents

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See also

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References

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  1. ^ "Index Tracker Funds".
  2. ^ "No, the stock market is not an accurate indicator of the economy". Profit by Pakistan Today. 22 August 2021.
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