Hong Kong, Singapore, London, New York, (Sept. 9, 2009) — The Industry Classification Benchmark (ICB), a jointly developed classification system launched by FTSE Group and Dow Jones Indexes, has been adopted by the Karachi Stock Exchange (KSE) to classify and analyse specific sectors of the Pakistan stock market using internationally accepted standards. The Industry Classification Benchmark provides a comprehensive system with four levels of granularity — industry (10), supersectors (19), sectors (41) and subsectors (114) and facilitates cross-border company comparison.
ICB will replace KSE’s own classification system after a transition period in which KSE will run both classification systems parallel to allow a smooth adoption process.
ICB is the standard used by major stock exchanges, data distributors, index providers, buy side and sell side institutions, custodians and media organizations globally. KSE joins other exchanges and global financial institutions which have integrated ICB into their research, trading and investment workflows. These include NASDAQ, NYSE/Euronext, the London Stock Exchange, the Swiss Exchange, Aegon, the International Monetary Fund and the World Economic Forum, as well as media outlets including The Wall Street Journal, the Financial Times, CNBC and Dow Jones Newswires.
James Cemprola, Managing Director of ICB commented, “By adopting well-established global standards like ICB, upcoming financial markets can strengthen their transparency, comparability and hence draw the attention of international market participants. The Industry Classification Benchmark is a relevant, clear, strictly rules-based and accurate system which is designed to meet the needs of sophisticated investors. We are pleased that financial institutions in emerging Asia such as the Karachi Stock Exchange are choosing ICB to assist them in bringing their services in line with practices of the global investment community.”
More information about ICB is available at http://www.icbenchmark.com.
FTSE Group
New York
Jill Mathers, Tel: + 1 212 641 6166
London
Sabrina Bhangoo or Mittal Dave, Tel: + 44 207 866 1821
Hong Kong
Meredith Blakemore or Emily Mok, Tel: + 852 2230 5800
Tokyo
Stewart Ueno, Tel: +81 3 3581 3444
Sydney
Natalie Brooke, Tel: +61 422 139 132
Or Email media@ftse.com
About ICB
ICB is the new global solution for industry classification. A joint effort of FTSE Group (FTSE) and Dow Jones Indexes, ICB is a comprehensive system for sector and industry analysis, facilitating the comparison of companies across four levels of classification. The system is supported by the ICB global database which contains over 60,000 companies and 65,000 securities worldwide. ICB has been adopted by stock exchanges, data distributors, index providers, buy side and sell side institutions, custodians and media organizations globally. For more information about ICB, visit http://www.icbenchmark.com.
About FTSE Group
FTSE Group (“FTSE”) is a world-leader in the creation and management of indexes. With offices in Boston, Beijing, London, Frankfurt, Hong Kong, Madrid, New York, Paris, San Francisco, Sydney, Shanghai and Tokyo, FTSE works with investors in 77 countries globally. It calculates and manages a comprehensive range of equity, fixed income, real estate and investment strategy indices, on both a standard and custom basis. The company has collaborative arrangements with a number of stock exchanges, trade bodies and asset class specialists around the world.
FTSE indexes are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds.