KARACHI STOCK EXCHANGE

The 'Karachi Stock Exchange (Guarantee) Limited' ''(colloquially known as the Karachi Stock Exchange)'' is the largest stock exchange in Pakistan. It is located in Karachi, which is Pakistan's largest city and commercial hub.

Contents

History

Performance

KSE Indices

Arbitration

See also

References

External links

History

Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. Islamabad Stock Exchage came after it. Some serious steps were taken by Zulfiqar Ali Butto to developed It. In 2002, it was declared as the “Best Performing Stock Market of the World” by “Business Week”. As at March 15, 2007, 754 companies were listed with the market capitalization of Rs. 3,200.182 billion (US $ 56 Billion) having listed capital of Rs. 495.968 billion (US $ 8.96 billion). On July 9, 2007, the KSE 100 Index reached its ever highest value and closed at 14020.90 points.
KSE has been well into the 4th year of being one of the best performing markets of the world as declared by “Business Week”. Similarly USA Today termed Karachi Stock Exchange as one of the best performing bourses in the world. ^[1]
Foreign buying interest had been very active on the KSE in 2006 and has continued in 2007 so far. According to estimates from the State Bank of Pakistan, foreign investment in capital markets total about $523 Million US. 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 2007. 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 12,400 points, before settling around the 11,000 mark. Result season in June and better payout expectations can drive the market to record level high again.

Performance

As measured by the KSE 100 Index, the Karachi stock market has grown rapidly in the current century. The Karachi Stock Exchange was acclaimed as the best-performing stock market of the world in 2002. ^[2]

KSE Indices

KSE began with a 50 shares index. As the market grew, a representative index was needed. On November 1 1991 the KSE-100 was introduced with a base of 1,000 points. By 2001, it had grown to 1,770 points. By 2005, due to a period of robust growth the index had skyrocketed to 9,989 points. It reached a peak of 11,485 points in March 2006. At the moment the KSE 100 index is trading at an all time high of over 12,400 points (May. 02, 2007) The KSE-100 approach remains to this date the most generally accepted measure of the Exchange. The KSE-100 is a capital weighted index and consists of 100 companies representing about 86 percent of market capitalization of the Exchange. At the end of 2006, KSE-30 Index was introduced , which was Pakistan first free float index comprising of 30 most floated stocks in KSE. KSE-30 index was trading at 14,199 points (March. 15, 2007).

Arbitration

KSE has devised procedures for resolution of investor to member and inter member complaints. Disputes between investors and members of the Exchange are resolved through deliberations mediated by The Arbitration Committee of the Exchange.

See also

★ KSE 100 Index

★ KSE-30 Index

★ Economy of Pakistan

★ Economy of Karachi

★ Islamabad Stock Exchange

★ Karachi Cotton Exchange

★ Lahore Stock Exchange

★ List of South Asian stock exchanges

★ National Commodity Exchange Limited

References

1. Karachi Stock Exchange
2. Pakistan best 2002 market performer

External links

★ Karachi Stock Exchange Website

★ Fund Managers Resource

★ Hafiz Investors Service - Equity Research & Analysis for the Pakistani Investor

★ A Memorable Year for Pakistani bourses, Dawn, Dec. 31, 2002

★ Who parented the stock market boom?, Dawn, Jan. 20, 2003

★ Stockpk.com: Karachi Stock Exchange News and Trading Tips

★ Karachi Stock Exchange Forum

★ Financial News & Research Portal mainly for Karachi Stock Exchange

★ Tezi Mandee - Comprehensive Community Of Pakistani Investors & Traders