Islamic Index - KSI
From HodHood
Contents
Top 20 FREQUENT WORDS
index 79 shares 64 float 60 islamic 38 price 32 revised 26 divisor 25 capitalization 21 bonus 20 equity 17 companies 16 adjusted 12 compliance 11 compliant 11 premium 11 adjustments 10 calculate 10 dividend 10 issue 10 kmi 10 kse 10 stock 10 trading 10
DOCUMENT KEY POINTS
- kse meezan index is also calculated using the free float market capitalization wherein the level of index at any point in time reflects the free float market value of the selected shariah compliant shares in relation to the base period
- currently the three indices being maintained at the karachi stock exchange are kse index kse all share index and kse index
- free float calculation total outstanding shares xxx less shares held by directors sponsors xxx government holdings as promoter acquirer controller xxx shares held by associated companies cross holdings xxx shares held with public in physical form xxx xxx free float xxx notwithstanding to the above calculations under no circumstances whatsoever free float of a scrip shall exceed its book entry shares available in the central depository system
- free float methodology reflect the true image of liquidity present in the market hence the index movement is unbiased towards the closely held companies high net worth individuals speculators and hedgers may use the free float number for framing trading strategies while regulatory bodies may use these numbers for effective risk management and market surveillance to minimize market manipulation incidences
- included in the horizon for islamic index its free float is rounded off to the higher multiple of five and each company is categorized into one of the bands given below
- islamic index
- screening filters the companies whose primary business is related to any of the following areas or business segments shall not be eligible for inclusion in the islamic index
- the industries that are considered non compliant as defined in the eligibility criteria are not considered for inclusion in the islamic as these would not be appropriate for investment from shariah perspective
- illiquid assets compliance compliance is measured as illiquid assets total assets
- capitalization and the remaining is allocated to impact cost such that the companies with the highest free float and the lowest impact cost get the highest rank in the selection process
- given the circumstances the revised market capitalization is divided by closing index value prior to adjustment to get the new divisor which takes care of the impact arising out of cash dividend bonus right issues or other such corporate actions affecting the market price or number of outstanding shares the calculation will be carried out one day prior to the commencement of closure of share transfer register on t settlement basis and the prices shall be opened on ex entitlement basis one day prior to the commencement of book closure of share transfer register
- adjustment for cash dividend dividend adjustment if company a has declared cash dividend kmi index kmi index market capitalization divisor step determine the ex dividend price of the stock a to calculate the revised market capitalization and a new divisor for the next day stock a par value rs
- bonus and right adjustments in simultaenous let us assume that the same equity announces a bonus of and right of at a premium of rs per share value of islamic index market capitalization on divisor following procedure illustrates the procedure and computations to calculate the ex bonus and exright price of the equity on a single board lot
- revised number of shares shall be calculated after accommodating both the right and bonus shares by using following equations shares x right shares x bonus shares revised cost of board lot may be calculated in the following manner shares x market price of a right shares x par value premium x
Please note, This is an auto generated summary based on sentances position in the document and other factors
DOCUMENT WORD ANALYSIS
Main Category
- AlHuda Material\sukuk islamic
KeyWords
fund islam invest shariah equities asset manage stock index companies global marketability production return risk investor countries sharecropping busi financi
RELATED DOCUMENTS
- Development of Islamic FundsIndustry by Mir Muhammad Ali
- Islamic Asset Management by John A. Sandwick
- Islamic Bank Performance and Capital Structure by MPRA
- Islamic Capital Market Products by Salman Syed Ali
- Islamic Equity Funds By Osman Babikir Ahmed
- Islamic Finance to Aid Water Utilities by Elie Elhadj
- Islamic Fund Report - Ernst & Young_IFIR09_v1
- Islamic Index - KSI
- Islmic RIETs - Legal Issues by Saiful Azhar
- Mutal Funds Market in Pakistan
- Pakistani Islamic Interbank Market by Syed Tariq Hussain
- RIETs International Allocation Views
- SP-Shariah-Indices-Web
- sukuk worldwide by Zubair Mughal
- The State of Islamic Capital Markets and Future Prospects by
DOCUMENT REFERENCES
Number of Pages
17
Published Date
2008-11-11 09:07:33
