The Karachi Stock Exchange (KSE) replaced two ostensibly bad-performing listed firms in line with market capitalisation rules of the Exchange. As a result, the benchmark 100-share index will witness a 0.83 basis point impact. “In aggregate, two companies will be affected due to re-composition process,” said a KSE notice released on 28 March. The period under review by the KSE ranged from September 2011 to February 2012. This resulted in Javedan Corporation Limited and International Industries Limited being replaced by Engro Foods Limited and Fauji Cement Company Limited whose financial weight would increase total market capitalisation of the recomposed index to 93.14%. “The recomposed index, based on the prices of February 29 (2012) will capture the market capitalisation to the extent of 93.14%of the total market capitalisation as compared to 92.31% of the current index,” said the KSE notice. In March 2011 the KSE removed Fauji Cement Company, WorldCall Telecom and KASB Bank Limited from the benchmark index . These companies were replaced by Fatima Fertilizer Company Limited, Agritech Limited and Indus Dyeing and Manufacturing Company Limited
