What is the KSE-100 index, really?
The KSE-100 is the headline number for the Pakistan Stock Exchange. Here's what it actually measures, how it's calculated, and why retail investors should care.
When the news says “the PSX closed up 1.2% today,” they’re talking about the KSE-100. Here’s what’s actually behind that number.
The short version
The KSE-100 is a market-cap-weighted index of the 100 largest companies listed on the Pakistan Stock Exchange. It’s the closest thing PSX has to a “stock market thermometer.” If the KSE-100 is up, most of the big stocks went up; if it’s down, most went down.
How it’s calculated
Each of the 100 stocks contributes to the index in proportion to its free-float market capitalization — the market value of shares that are actually available to trade (excluding shares locked up by insiders, government, or major holders).
This means a few names dominate the index. As of 2026, the top 10 alone account for roughly 50% of the index’s movement. Companies like OGDC, HBL, MCB, LUCK, ENGRO move the needle far more than the smaller names on the list.
That’s why we built the KSE-100 Heavyweights basket — track those top 10 names and you’re tracking the index in miniature.
Why the weighting matters
If you own a 4-stock portfolio of LUCK, OGDC, HBL, MCB, your portfolio will mostly track the KSE-100 even though you only own 4 of 100 stocks. That’s because those 4 names are huge index contributors.
Conversely, if you own 10 small-cap stocks, the KSE-100 going up doesn’t tell you much about your portfolio.
Common misconceptions
- “KSE-100 going up = my stocks are up” — only if you own the heavyweights. Small caps move independently.
- “It’s a Pakistan economy index” — partially. It’s biased toward sectors that float on PSX, which over-represents banks, cement, energy. Tech is small. Retail is tiny.
- “Historical performance predicts future returns” — no. The index has had years up 50% and years down 35%. Use it as a benchmark, not a forecast.
How to use it as a benchmark
Compare your portfolio’s return to KSE-100 over the same period:
- Beating KSE-100 — you’re doing better than the market average
- Matching KSE-100 — you could have just bought the heavyweights and gone fishing
- Below KSE-100 — your picks underperformed; time to re-examine
Equivest’s portfolio detail screen shows your return next to KSE-100 by default, so this comparison is one tap away.
The index isn’t the market
PSX has ~530 listed companies. The KSE-100 covers 100. The other 430 are small/mid caps that move on their own logic. Don’t assume the index represents your portfolio if you own smaller names.
The headline is a useful summary. Your portfolio is the real story.