Type Stock exchange Owner Government of Pakistan | Location Karachi, Pakistan Currency Pakistani Rupee | |
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Founded January 11, 2016; 13 months ago (2016-01-11) No. of listings 558 - as on (December 22, 2016) | ||
The Pakistan Stock Exchange (PSX) is the stock exchange of Pakistan with trading floors in Karachi, Islamabad and Lahore. PSX is due to be become part of the MSCI Emerging Markets Index in May 2017.
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PSX was established on the 11th of January 2016 after the merger of individual stock exchange's of Karachi, Lahore and Islamabad. PSX's origin's where laid with the establishment of the Karachi Stock Exchange in 1947, the Lahore Stock Exchange in 1970 and the Islamabad Stock Exchange in 1992. As of January 26, 2016, there are 558 companies listed in PSX and the total market capitalisation is Rs.10,003,908.00 million ($95billion).
The investors on the exchanges include 1,886 foreign institutional investors and 883 domestic institutional investors along with about 0.22 million retail investors. There are also about 400 brokerage houses which are members of the PSX as well as 21 asset management companies. PSX is the among the world's best performing stock market's, between 2009 and 2015 it delivered a 26% a year. In December 2016, PSX sold 40% strategic shares to a Chinese consortium for $85 million.
History
The Pakistan Stock Exchange (PSX) Limited came into inception in January 2016 when the Government of Pakistan decided to merge the three large exchange markets of the country into one combined market.
Karachi Stock Exchange
Founded on September 18, 1947, Karachi Stock Exchange Limited (KSE) was registered in Pakistan. 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 was Pakistan's largest and one of the oldest stock exchange in South Asia. Karachi Stock Exchange was also listed among 10 best stock markets in the world in 2015. 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. As on July 10, 2015, total market capitalization reached Rs. 7.33 trillion (US$72 billion approximately).
Lahore Stock Exchange
Lahore Stock Exchange (Guarantee) Limited (LSE) was Pakistan's second largest stock exchange after the Karachi Stock Exchange. It is located in Lahore, Pakistan. It was formally inducted into the national Pakistan Stock Exchange on the 11th of January 2016. The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore. The number of listed companies has increased to 519 since its inception. The LSE has 152 members of which 81 are corporate, and 54 are individual members. The LSE was the first stock exchange in Pakistan to use the internet and currently 50% of its transactions are via the internet.
Islamabad Stock Exchange
Islamabad Stock Exchange or ISE was the youngest of the three stock exchanges of Pakistan and is located in the capital of Islamabad. Islamabad stock exchange (ISE) was incorporated as a guarantee-limited company on 25 October 1989 in Islamabad. ISE tower is a 22 storey building, which makes it the second highest building of Islamabad after the Telecom Tower. Area covered by the building is 562,629 sq ft (52,269.9 m2), it consists of three levels of basements and ground plus 18 floors above.
Merger
Launched on January 11, 2016, aimed to help reduce market fragmentation and create a strong case for attracting strategic partnerships necessary for providing technological expertise and assistance, PSX was launched.