The Pakistan Stock Exchange (PSX) has retained the existing composition of its Oil & Gas and Banking Sector Tradable Indices following the latest re-composition review, covering the period from July 1, 2025, to December 31, 2025, according to a notice issued by the bourse on Friday. The review concluded with no changes to the constituents of either index, leaving both sector benchmarks intact.
The re-composition exercise was carried out in accordance with the eligibility and selection criteria defined under PSX’s sector index methodology. These reviews are conducted periodically to ensure that the tradable indices continue to accurately reflect the underlying sectors while maintaining consistency, transparency, and investability for market participants. In this instance, all existing constituents met the required benchmarks, resulting in no additions or exclusions.
PSX clarified that its tradable sector indices are structured to capture at least 80% of the free-float market capitalization of each respective sector. Unlike some indices that impose a minimum number of listed companies, PSX’s methodology allows flexibility in constituent count, provided the market capitalization threshold is met. This design enables the indices to remain representative of sector performance while avoiding unnecessary turnover.
Market observers note that the absence of changes suggests relative stability within both the oil and gas and banking sectors during the review period. Companies included in these indices continued to meet liquidity, capitalization, and free-float requirements, reinforcing their position as core representatives of their respective industries on the exchange.
The Tradable Banking Sector Index continues to include eight major banking institutions listed on the Pakistan Stock Exchange. These include United Bank Limited, Habib Bank Limited, Meezan Bank Limited, MCB Bank Limited, Bank AL Habib Limited, National Bank of Pakistan, The Bank of Punjab, and Bank Alfalah Limited. Collectively, these banks represent a substantial share of the sector’s free-float market capitalization and play a central role in Pakistan’s financial system.
Similarly, the Tradable Oil & Gas Sector Index remains composed of three leading exploration and production companies: Oil & Gas Development Company Limited, Pakistan Petroleum Limited, and Mari Petroleum Company Limited. These entities dominate the oil and gas sector in terms of market capitalization and production footprint, making them key indicators of energy sector performance on the PSX.
PSX highlighted that the tradable sector indices serve as important benchmarks for sector-focused investment products and passive investment strategies. Asset managers, exchange-traded funds, and institutional investors frequently rely on these indices to track sector trends, allocate capital, and design investment portfolios aligned with specific industries.
The unchanged composition may also offer predictability for investors tracking these indices, as stability in constituents reduces portfolio rebalancing costs for passive funds. Analysts suggest that this continuity can be particularly relevant in periods of macroeconomic adjustment, where sector-level performance tracking becomes a key input for investment decisions.
By maintaining the existing structure of the Oil & Gas and Banking Sector Tradable Indices, the Pakistan Stock Exchange has reaffirmed the robustness of its index methodology and the continued relevance of current constituents. The decision reflects steady sector representation and reinforces the role of these indices as reliable indicators of market performance within Pakistan’s capital markets.
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