← Glossary
Sector Weight
The share of a stock index's total market capitalization contributed by a given sector (e.g. banks, cement, oil & gas) — a gauge of how much that sector moves the index.
A sector with a large combined free-float market cap (banks and E&P, historically, on the PSX) can move the KSE-100 significantly even if most individual stocks within it are flat, simply because of its collective weight.
Comparing a sector's weight against its recent performance shows whether an index move is broad-based or being driven by one or two heavyweight sectors.