KMI 30 Index


KSE Meezan Index is a stock market index on the Pakistan Stock Exchange in Pakistan of thirty companies that have been screened for Islamic Shariah criteria. The index was introduced in 2009 and the base period for this Islamic index is 30 June 2008. It was created as a joint effort by the Karachi Stock Exchange and Al-Meezan Investment Bank.
The index is calculated using free float market capitalization. At any point in time, the level of the index reflects the free float market value of selected Shariah-compliant shares in comparison with the base period. KMI-30 is recomposed semi-annually.
Guidance is taken from qualified and well reputed Shariah experts when Shariah compliance of stocks is done.

Shariah compliance testhttp://www.kse.com.pk/

For any stock to be "Shariah Compliant" it must meet all of the following six criteria:
Screening Criteria # 1: Business of the Investee Company:
The core business of the company should not violate any principle of Shari’ah. Therefore, it is not permissible to acquire the shares of the companies providing financial services on interest like conventional banks, insurance companies, leasing companies or the companies involved in some other business not approved by the Shari’ah e.g. Companies making or selling liquor, pork, Haram meat, or involved in gambling, operating night clubs, disseminating pornographic content, prostitution etc.
Screening Criteria # 2: Interest Bearing Debt to Total Assets:
The Interest Bearing Debt to Total Assets ratio should be less than 37%. To understand the rationale behind this condition, it should be kept in mind that such companies are mostly based on interest. Here again, the aforementioned principle applies i.e. if the shareholder is not personally agreeable to such borrowings, but has been overruled by the majority, these borrowing transactions cannot be attributed to him / her. Debt, in this case, is classified as any interest bearing debt including Bonds, TFCs, Commercial Paper, Conventional Bank Loans, Finance Lease, Hire Purchase, issuing preference shares etc.
Screening Criteria # 3: Non-Compliant Investments to Total Assets:
The ratio of Non Compliant Investments to Total Assets should be less than 33%. Non-Shari’ah Compliant Investments include investments in conventional mutual funds, conventional money market instruments, Commercial Paper, interest bearing bank deposits, Bonds, PIBs, FIB, T-Bills, CoIs, CoDs, TFCs, DSCs, NSS, derivatives etc.
Screening Criteria # 4: Non-compliant Income to Total Revenue:
The ratio of Non Compliant Income to Total Revenue should be less than 5%. Total Revenue includes Gross Revenue plus any other income earned by the company. Non Compliant Income includes income from gambling, income from interest based transactions, income from Gharar-based transactions i.e. derivatives, insurance claim reimbursement from a conventional insurance company, any penalty charged on late payment in credit sale, income from casinos, addictive drugs, alcohol, dividend income from above mentioned businesses or companies which have been declared Shari’ah Non-Compliant due to non-compliance to any of the mentioned criteria for Shari’ah Compliance etc.
Screening Criteria # 5: Illiquid Assets to Total Assets:
The ratio of Illiquid Assets to Total Assets should be at least 25%. In terms of Shari’ah, illiquid assets are all those assets that are not cash or cash equivalents. Therefore, inventory of raw material, work in process, among all other fixed assets are considered as illiquid whereas long term investments in interest based institutions are considered to be liquid in terms of Shari’ah.
Screening Criteria # 6: Net Liquid Assets / Share vs. Market Price / Share:
Market Price per share should be at least equal to or greater than net liquid assets per share. Net liquid assets per share is calculated by using the following formula:
Net Liquid Assets per Share = / Number of Shares Outstanding
Showing of Discomfort:
If the main business of the investee companies is Halal, like automobiles, textiles, manufacturing concerns etc. but they deposit their surplus amounts in an interest bearing account or borrow money on interest, the share holder must express his / her disapproval against such dealings, preferably by raising his / her voice against such activities in the annual general meeting of the company and / or by sending a letter to the management in this regard.

List of companies

The following list of companies are included in the KMI-30 index as per the notice from Pakistan Stock Exchange dated 22 December 2017. The recomposed index is implemented w.e.f 2 January 2018.
NumberName of CompanySymbol
1Sui Northern Gas PakistanSNGP
2Pakistan PetroleumPPL
3Hub Power CompanyHUBC
4Engro CorporationENGRO
5Lucky CementLUCK
6National RefineryNRL
7Sui Southern Gas PakistanSSGC
8Pakistan Oil FieldsPOL
9Dawood Hercules CorporationDAWH
10Fauji Cement Ltd.FCCL
11K-Electric LimitedKEL
12Millat TractorsMTL
13Engro FertilizersEFERT
14D.G Khan CementDGKC
15Treet Corporation LtdTREET
16Packages Ltd.PKGS
17Nishat MillsNML
18Maple Leaf CementMLCF
19Mari Gas CompanyMARI
20Engro Polymer and Chemicals LtdEPCL
21GlaxoSmithKline PakistanGLAXO
22The Searle Company LtdSEARL
23Pak Elektron LtdPAEL
24Kot Addu Power Company LtdKAPCO
25Attock Petroleum LtdAPL
26International Steels LtdISL
27Attock Refinery LtdATRL
28International Industries LtdINIL
29Oil and Gas DevelopmentOGDC
30Hascol Petroleum LtdHASCOL