Karachi Stock Exchange

Karachi Stock Exchange
کراچی بورس‬
Type Stock exchange
Location Karachi, Pakistan
Founded August 14, 1947 (1947-08-14)
Closed January 11, 2016 (2016-01-11)
Owner Pakistan Stock Exchange
Key people Nadeem Naqvi, Managing Director
Currency Pakistani rupee
Commodities Shares & rights, corporate participation certificates, futures
No. of listings 576 companies
Market cap ₨9.2 trillion (US$87 billion)[1]
Volume ₨1.3 trillion (US$12 billion)
Website kse.com.pk

The Karachi Stock Exchange (Urdu: کراچی بورس‬‎ or PSX-KSE) was a stock exchange located in Karachi, Sindh, Pakistan. Since 1947, it has been located at the Stock Exchange Building on I. I. Chundrigar Road. It has now been consolidated in the Pakistan Stock Exchange, along with the Lahore Stock Exchange and Islamabad Stock Exchange.[2] The KSE was Pakistan's largest and oldest stock exchange. According to Bloomberg, the Pakistani benchmark stock market index is the third-best performer in the world since 2009.[3] In June 2015, Khaleej Times reported that since 2009, Pakistani equities delivered 26% a year for US dollar investors, making Karachi the top-performing stock exchange in the world.[4][5]

History

The Karachi Stock Exchange was established on 18 September 1947 and was incorporated as Karachi Stock Exchange Limited on 10 March 1949. The KSE began with 5 companies as KSE 50 with a total market capitalisation of ₨37 million (US$350,000). For over 60 years, the KSE facilitated capital formation, serving a wide spectrum of participants, including individual and institutional investors. With a growing number of listed companies and trading activities by the late 1980s, another index was proposed. On 1 November 1991, the KSE 100 Index was introduced. By 1995, the need for a futures index was realized and on 18 September 1995, the KSE All Shares Index was introduced. To address the needs of the investors community, two other indexes were introduced in the late 1990s - the KSE-30 Index and KMI 30 Index. Work on a fully automated trading system began in the late 1990s and in 2002, the Karachi Automated Trading System or KATS was launched, which had the ability to handle over 1 million trades per day. In the same year, the KSE was declared the "Best Performing Stock Market of the World"[6]. In 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.

2008 crash

  • April 20: The KSE achieved a major milestone when the KSE-100 Index crossed 15,000 points for the first time in its history and peaked 15,737 points on 20 April. Moreover, the increase of 7.4% in 2008 made it the best performer among major emerging markets.[7][8]
  • May 23: Record high inflation in the month of May resulted in the unexpected increase in the interest rates by State Bank of Pakistan which eventually resulted in sharp fall at the KSE.[9][10]
  • July 17: Angry investors attacked the KSE Building in protest at plunging Pakistani share prices.[11][12]
  • July 16: The KSE-100 dropped one-third from its all-time high as raising pressure on Pakistan's coalition government to tackle Taliban militants exacerbates concern about the country's economic woes.[13]
  • August 18: KSE-100 rises more than 4% after the announcement of the resignation of President Pervez Musharraf but Credit Suisse Group states that Pakistan's post-Musharraf rally at the KSE will be short-lived because of a rising fiscal deficit and runaway inflation.[14][15]
  • August 28: The Karachi Stock Exchange set a floor for stock prices to halt a plunge that wipes out $36.9 billion of market value.[16]
  • December 15: Trading resumes after the removal of floor on stock prices that was set in August.[17][18]

Hours

The exchange has a trading session from 09:32am to 03:30pm PST and a post-market session from 03:31pm to 04:00pm PST from Monday to Thursday. On Friday, the trading session is split with the trading session beginning from 09:17am to 12:00pm and 02:32pm to 04:30pm. The exchange is closed on Saturdays and Sundays and holidays are declared by the exchange in advance.

Companies listed

SymbolCompany NameO.S. Shares
AGTLAl-Ghazi Tractors Limited57,964,201
ATLHAtlas Honda Limited103,406,613
DFMLDewan Farooque Motors Limited138,735,242

See also

References

  1. ↑
  2. ↑ "Pakistan Stock Exchange formally launched". Dawn.
  3. ↑ "Pakistan central bank cuts benchmark rate to 42-year low". AFRWEEKEND. May 24, 2015. Archived from the original on May 24, 2015. Retrieved May 24, 2015.
  4. ↑ "KSE world's best performing frontier stock market: report". The Express Tribune. June 3, 2015. Archived from the original on June 8, 2015. Retrieved Jun 8, 2015.
  5. ↑ "Pak equities to extend bull run on strong fundamentals". Khaleej Times. June 1, 2015. Archived from the original on 2015-06-08. Retrieved Jun 8, 2015.
  6. ↑ Shoaib-ur-Rehman Siddiqi (Jan 30, 2015). "KSE one of best performing stock exchanges in world: PM". Business Recorder. Retrieved March 1, 2015.
  7. ↑ Karachi Stock Exchange reaches record high – Gulf News
  8. ↑ Monster & Critics Archived 2012-03-07 at the Wayback Machine.
  9. ↑ Pakistan Stocks Slump, Led by Banks, After Unexpected Rate Rise – Bloomberg
  10. ↑ Billions wiped off on PSX’s ‘black Friday’ - Dawn.com
  11. ↑ Protest over Pakistan share slump – BBC News
  12. ↑ Pakistani Investors Stone Exchange as Stocks Plunge – Bloomberg
  13. ↑ Forbes.com
  14. ↑ Pakistan shares up on resignation – BBC News
  15. ↑ Pakistan's Post-Musharraf Rally Will Falter, Credit Suisse Says – Bloomberg
  16. ↑ Pakistan Stock Index Is Little Changed; Trading Limits Remain Bloomberg
  17. ↑ Pakistan’s Stock Index Falls to 2-Year Low After Lifting Curbs – Bloomberg
  18. ↑ The Avoidable collapse of Karachi Stock Exchange 2008 – KSE

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