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Glossary · PSX term

Index weight.

Index weight is the share of an index's value that a single company represents.

Definition

On free-float indices like the KSE-100, a company's weight is its free-float market capitalisation divided by the index's total free-float market capitalisation. Higher-weight companies move the index more, so a big day for a heavyweight can lift or drag the whole benchmark.

Worked example

If HBL is 6% of the KSE-100 by free-float value, a 5% rise in HBL adds roughly 0.3% to the index from that stock alone.

Related on PSX Clarity

Free-float market capitalisation

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