Karachi Stock Exchange

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Karachi Stock Exchange
KSE Location of Karachi Stock Exchange in Pakistan
Type	Stock Exchange
Location	Karachi, Pakistan
Founded	August 14, 1947; 65 years ago (1947-08-14)
Owner	Karachi Stock Exchange Limited
Key people	Haroon Askari, AMD
Currency	₨.
No. of listings	652
MarketCap	US$ 39.45 billion - (1 June, 2012)[1]
Volume	US$ 12 billion
Indexes	KSE 100 Index KSE-30 Index KSE-All Shares Index KMI 30 Index
Website	www.kse.com.pk

The Karachi Stock Exchange (KSE), is a stock exchange currently located at the Stock Exchange Building (SEB) on Stock Exchange Road, in the heart of Karachi's Business District, II Chundrigar Road, Karachi, Sindh Province of Pakistan. It is Pakistan's largest and one of the oldest stock exchange in South Asia by market capitalization, with many Pakistani consortium as well as overseas enterprises listings.

History

Founded in 1947, Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan. It was declared the “Best Performing Stock Market of the World for the year 2002”. A total of 654 companies were listed on December 8, 2009 with a market capitalization of Rs. 8.561 trillion (US$ 120.5 billion) having listed capital of Rs. 2805.873 billion (US$ 40.615 billion). The KSE-100 Index closed at 11,967 on May 16, 2011. Total market capitalisation of the KSE reached Rs 2.95 trillion (US$ 35 billion approximately) on July 30, 2011.

Business

Trading

The exchange has pre-market sessions from 09:15am to 09:30am and normal trading sessions from 09:30am to 03:30pm.^[2] The karachi stock exchange has undergone a considerable deal of downturn partly due to global financial crisis and partly on account of domestic troubles. It remained suspended in excess of 4 months and resumed normal trading only on December 15, 2008. The KSE 100 Index and KSE 30 Index after hitting the low around mid January has now rebounced and recovered 20-25% till March 12, 2009. By 30 July 2010 total market capitalisation of the KSE reached Rs2.95 trillion, approximately 35 billion dollars.

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 8, 2009, 652 companies were listed with the market capitalization of Rs. 2.561 trillion (US$ 30.5 Billion) having listed capital of Rs. 717.3 billion (US$ 12 billion). On December 26, 2007, the KSE-100 Index 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.

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

The exchange began with the KSE-50 index. As the market grew a representative index was needed. On November 1, 1991 the KSE-100 was introduced and remains to this day the most generally accepted measure of the Exchange. KSE-100 index is used as a benchmark to compare prices overtime and companies with the highest market capitalization from each sector are selected and included in it to ensure full market representation.

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. By August 29, 1995 the KSE-All Share Index was constructed which became operative on September 18, 1995.

At present, the KSE has four market indices (KMI-30, KSE-30, KSE-100 and KSE-All Share Index).

2008 and 2009 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 stock exchange history and peaked 15,737.32 on 20 April 2008. Moreover, the increase of 7.4 per cent in 2008 made it the best performer among major emerging markets.^[3][4]
• 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.^[5][6]
• July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices.^[7][8]
• July 16 : KSE-100 Index 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.^[9]
• 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.^[10][11]
• 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.^[12]
• December 15: Trading resumes after the removal of floor on stock prices that was set on August 28 to halt sharp falls.^[13][14]
• December 06 2012 :Karachi Stock Exchange KSE hits third straight record high In Its HistoryHistory^[15]

Disputes

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

See also

• KSE 100 Index.
• Lahore Stock Exchange.
• Islamabad Stock Exchange.
• 128 Securities
• Economy of Pakistan
• Economy of Karachi
• List of Pakistani companies
• List of stock exchanges

References

External links

• Karachi Stock Exchange Website

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