KARACHI, Aug 30: The Board of Directors of the Karachi Stock Exchange in its meeting on August 28, reviewed and approved recomposition of the KSE-100 index, based on the Recomposition Rules and Procedure laid down for the purpose, a press release issued by the bourse on Friday, said.

The revised index would be implemented from September 16. According to the recomposed index two companies out of the 100, would be affected. In terms of market capitalization Rule (time base) three companies have entered the index, replaced by an equal number who have been removed, having met the criteria of 2 consecutive re-composition periods. Companies to enter include: Adamjee Insurance Company; Pakistan PTA and Clariant Pakistan, while those to leave include New Jubilee Insurance; Gadoon Textile and Hinopak Motors.

In terms of sector rule, Gadoon Textile Mills entered while Dewan Textile Mills left. This was based on the criteria of being the largest stock in the respective sectors and minimum of 10per cent greater in capitalization value than the present largest in the sector.

In terms of Sector Time Base Rule, New Jubilee Insurance Company entered and Adamjee Insurance Company left. The criteria was maintaining its position as largest in the sector for two consecutive re-composition periods.

The KSE stated that the recomposed index based on the prices of June 28, would capture the market capitalization to the extent of around 82.73 per cent of the total market capitalization as compared to 82.12 per cent of the current index.

The KSE press statement also listed the revised list of 100 companies in the Recomposed index. These include one from mutual fund; two modaraba; one leasing; 15 banks & financial institutions; six insurance companies; one textile spinning mills; one textile weaving; eight textile composite; one woollen; six synthetics & rayon; one jute; one sugar & allied; five cement; two tobacco; 13 from fuel & energy; one engineering; six from auto & allied; one cable; three transport & communication; 14 from chemical and pharmaceuticals; three paper & board; one vanaspati; one construction; one leather; four from food; one glass and four companies from the miscellaneous sector.