PSX Clarity
Sign inStart free
S
Glossary · PSX term

Sector index.

A sector index tracks the combined performance of companies in one industry, such as banks or cement.

Definition

The PSX publishes sector indices so investors can see how a specific industry is doing versus the broad market. Comparing a stock against its sector index helps separate company-specific moves from industry-wide trends.

Worked example

If the cement sector index falls 3% on rising coal costs, LUCK and DGKC weakness may be an industry story, not a single-company one.

Related on PSX Clarity

Term
KSE-100 Index
Term
Index weight
Term
Sector rotation

More glossary terms

Browse all 199 terms →
Sector rotation
Sector rotation is the shift of money from one industry to another as conditions change.
Small-cap stock
A small-cap is a company with a relatively small market capitalisation and usually lower trading liquidity.
Special dividend
A special dividend is a one-off payout outside the company's normal dividend schedule.
Stock dividend
A stock dividend pays shareholders in extra shares instead of cash.
Share split
A share split divides each share into more shares with a lower face value, without changing total value.
Share buyback
A buyback is when a company repurchases its own shares from the market, reducing shares outstanding.
Shares outstanding
Shares outstanding is the total number of a company's shares currently held by all investors.
Strike price (IPO)
In an IPO, the strike price is the final price per share set from the book-building bids.
Secondary offering
A secondary offering is a sale of additional shares by a company or large holder after the IPO.