Kalpana Kalpana (Editor)

Karachi Stock Exchange

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Type
  
Stock Exchange

Currency
  
Pakistani Rupee

Location
  
Karachi, Pakistan

Karachi Stock Exchange

Founded
  
August 14, 1947; 69 years ago (1947-08-14)

Owner
  
Pakistan Stock Exchange Limited

Key people
  
Nadeem Naqvi, managing director

The Karachi Stock Exchange Limited (KSE), was a stock exchange located at the Stock Exchange Building (SEB) on Stock Exchange Road, in the heart of Karachi's Business District, I. I. Chundrigar Road, Karachi, Sindh Province of Pakistan. It is now incorporated in the Pakistan Stock Exchange along with the other two bourses of Pakistan, the Lahore Stock Exchange and the Islamabad Stock Exchange 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.

Contents

According to Bloomberg, the Pakistani benchmark stock market index is the third-best performer in the world since 2009. In June 2015, Khaleej Times reported that since 2009, the Pakistani equities delivered 26 percent a year for US dollar investors, making Karachi the best-performing stock exchange in the world.

With effect from January 11, 2016 the Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange were integrated under the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012 to form the Pakistan Stock Exchange Limited as the only stock exchange in Pakistan.

History

Founded on September 18, 1947, Karachi Stock Exchange Limited (KSE) is the exchange in Pakistan. It was declared the "Best Performing Stock Market of the World for the year 2002", the position again re-affirmed by the Prime Minister of Pakistan in January 2015. However, according to analysis by Bloomberg, Pakistan ranked third in 2014 amongst the Top Ten Best Performing Markets in the world. 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 capitalization of the PSX reached Rs 2.95 trillion (US$35 billion approximately) on July 30, 2011. As on July 10, 2015, total market capitalization reached Rs. 7.33 trillion (US$72 billion approximately).

Friday

The hours of operation for the PSX quoted above are stated in terms the local time (GMT + 5:00). PSX's normal trading sessions are on all days of the week except Saturday, Sundays and holidays declared by the Exchange in advance. On Friday, there are two trading sessions and PSX observe Friday prayer break in between.

  • During Regular Order Matching & Confirmation Period, the System shall be static for minimum 2 minutes and maximum for about 10 minutes and no Order shall be input into the System, amended or cancelled.

    • 2008 and 2009 Pakistan 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.
  • 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.
  • July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices.
  • 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.
  • 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.
  • 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.
  • December 15: Trading resumes after the removal of floor on stock prices that was set on August 28 to halt sharp falls.
  • December 6, 2012 :Pakistan Stock Exchange (PSX) hits third straight record high its history.

    • Disputes

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

    References

    Karachi Stock Exchange Wikipedia
    (Text) CC BY-SA