Karachi Stock Exchange

Infobox Exchange
name = Karachi Stock Exchange
nativename =



type = Stock Exchange
city = Karachi
country = Pakistan
founded = 1947
owner = Karachi Stock Exchange Limited
key_people = Adnan Afridi, CEO
currency = PKR
listings = 671
mc

volume = US$ 12 billion
indexes = KSE 100 Index
KSE-30 Index
homepage = [http://www.kse.com.pk/ www.kse.com.pk]
footnotes = The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh, Pakistan. Founded in 1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings. Its current premises are situated on Stock Exchange Road, in the heart of Karachi's Business District.

History

Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan and was been declared as the “Best Performing Stock Market of the World for the year 2002”. As on May 30, 2008, 654 companies were listed with a market capitalization of Rs. 3,746.203 billion (US$ 56.334 billion) having listed capital of Rs. 705.873 billion (US$ 10.615 billion). The KSE 100TM Index closed at 12130.51 on May 30, 2008.

KSE has been well into the 4th year of being one of the best performing markets of the world as declared by the international magazine “Business Week”. Similarly the US newspaper, USA Today, termed Karachi Stock Exchange as one of the best performing bourses in the world.

Business

Trading

The exchange has pre-market sessions from 09:15am to 09:45am and normal trading sessions from 09:45am to 02:15pm. It is the second oldest stock exchange in South Asia. []

Growth

The KSE is the biggest and most liquid exchange in Pakistan and in 2002 it was declared as the “Best Performing Stock Market of the World” by “Business Week”. As of December 20, 2007, 671 companies were listed with the market capitalization of Rs. 4364.312 billion (US$ 73 Billion) having listed capital of Rs. 717.3 billion (US$ 12 billion). On December 26, 2007, the KSE 100 Index reached its ever highest value and closed at 14,814.85 points.

Foreign buying interest had been very active on the KSE in 2006 and continued in 2007. According to estimates from the State Bank of Pakistan, foreign investment in capital markets total about US$523 Million. According to a research analyst in Pakistan, around 20pc of the total free float in KSE-30 Index is held by foreign participants.

KSE has seen some fluctuations since the start of 2008. One reason could be that it is the election year in Pakistan, and stocks are expected to remain dull. KSE has set an all time high of 15,000 points, before settling around the 14,000 mark.

Karachi stock exchange Board of Directors has recently (2007) announced plans to construct a 40 story high rise KSE building, as a new direction for future investment.

Disputes between investors and members of the Exchange are resolved through deliberations of the Arbitration Committee of the Exchange.

KSE began with a 50 shares index. As the market grew a representative index was needed. On November 1st, 91 the KSE-100 was introduced and remains to this day the most generally accepted measure of the Exchange. Karachi Stock Exchange 100 Index (KSE-100 Index) is a benchmark used to compare prices overtime, companies with the highest market capitalization are selected. To ensure full market representation, the company with the highest market capitalization from each sector is also included.

In 1995 the need was felt for an all share index to reconfirm the KSE-100 and also to provide the basis of index trading in future. On August the 29th, 1995 the KSE all share index was constructed and introduced on September 18, 1995.

2008 Karachi Stock Exchange Crisis

*April 20 : Karachi Stock Exchange achieved a major milestone when KSE-100 Index crossed the psychological level of 15,000 for the first time in its history and peaked 15,737.32 on 20 April, 2008. Moreover, the increase of 7.4 per cent in 2008 makes itthe best performer among major emerging markets. [ [http://www.gulfnews.com/business/money/10204873.html Karachi Stock Exchange reaches record high - Gulf News] ] [ [http://news.monstersandcritics.com/business/features/article_1398911.php/ANALYSIS_Pakistans_stock_market_roaring_on_several_factors Monster & Critics] ]
* May 23: Record high inflation in the month of May, 2008 resulted in the unexpected increase in the interest rates by State Bank of Pakistan which eventually resulted in sharp fall in Karachi Stock Exchange. [ [http://www.bloomberg.com/apps/news?pid=20602005&sid=aDFkw4sRLuk8&refer=world_indices Pakistan Stocks Slump, Led by Banks, After Unexpected Rate Rise - Bloomberg] ] [ [http://dawn.com/2008/05/24/top2.htm Billions wiped off on KSE’s ‘black Friday’ - Dawn.com] ]
* July 17 :Angry investors have attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices. [ [http://news.bbc.co.uk/2/hi/south_asia/7511104.stm Protest over Pakistan share slump - BBC News] ] [ [http://www.bloomberg.com/apps/news?pid=20602005&sid=aO4E38y0bgho&refer=world_indices Pakistani Investors Stone Exchange as Stocks Plunge - Bloomberg] ]
* July 16 : KSE-100 Index has dropped one-third from an all-time high hit in April, 2008 as rising pressure on shaky Pakistan's coalition government to tackle Taliban militants exacerbates concern about the country's economic woes. [ [http://www.forbes.com/feeds/ap/2008/07/16/ap5219516.html Forbes.com] ]
* August 18: KSE 100 Index rose more than 4% after the announcement of the resignation of President Pervez Musharraf but Credit Suisse Group said that Pakistan's Post-Musharraf rally in Stock Exchange will be short-lived because of a rising fiscal deficit and runaway inflation. [ [http://news.bbc.co.uk/2/hi/business/7567623.stm Pakistan shares up on resignation - BBC News] ] [ [http://www.bloomberg.com/apps/news?pid=20602005&sid=aZ18KTXXC_zw&refer=world_indices Pakistan's Post-Musharraf Rally Will Falter, Credit Suisse Says - Bloomberg] ]
* August 28 :Karachi Stock Exchange set a floor for stock prices to halt a plunge that has wiped out $36.9 billion of market value since April. [ [http://www.bloomberg.com/apps/news?pid=20602005&sid=awV0ia8PG9Z0&refer=world_indices Pakistan Stock Index Is Little Changed; Trading Limits Remain Bloomberg] ]

ee also

* KSE 100 Index
* Lahore Stock Exchange
* Islamabad Stock Exchange
* Economy of Pakistan
* Economy of Karachi
* List of Pakistani companies
* List of stock exchanges

References

External links

* [http://www.kse.com.pk Karachi Stock Exchange Website]
* [http://www.pakstockexchange.com Research and Stock Market Simulation/Game for Pakistani Markets]
* [http://www.tezimandee.com/forum/index.php Tezi Mandee - Comprehensive Community Of Pakistani Investors & Traders]
* [http://www.swmohsin.com Virtual Karachi Stock Exchange]
* [http://www.pakinvestor.com.pk Fund Managers Resource]
* [http://www.hafizinvestors.com Hafiz Investors Service - Equity Research & Analysis for the Pakistani Investor]
* [http://www.dawn.com/2002/12/30/ebr4.htm A Memorable Year for Pakistani bourses] , Dawn, Dec. 31, 2002
* [http://www.dawn.com/2003/01/20/ebr1.htm Who parented the stock market boom?] , Dawn, Jan. 20, 2003
* [http://www.stockpk.com Stockpk.com: Karachi Stock Exchange News and Trading Tips]
* [http://www.kseforum.com Karachi Stock Exchange Forum]
* [http://www.amztrade.com Financial News & Research Portal mainly for Karachi Stock Exchange]