Presented to: Sir Tahir Mehmood Presented By: Ali Aoun(1648) Hamza Anwar(1639) Waleed Ajmal(1656) Mubashar Mukhtar(1599)

Hajvery university euro campus

STOCK EXCHANGE
A stock exchange or securities exchange is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities.

History Of STOCK EXCHANGE

In 11th century French were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers In the middle of the 13th century, Venetian bankers began to trade in government securities The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits or losses In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds. In 1688, the trading of stocks began on a stock exchange in London

The role of stock exchanges

Raising capital for businesses Mobilizing savings for investment Facilitating company growth Redistribution of wealth Corporate governance Creating investment opportunities for small investors Government capital-raising for development projects Barometer of the economy

Stock Exchanges in Pakistan

Karachi Stock Exchange (KSE) Lahore Stock Exchange (LSE) Islamabad Stock Exchange (ISE)

Karachi Stock Exchange (KSE)

Founded in 1947 November 1, 1991 the KSE-100 was introduced The KSE-100 is a capital weighted index and consists of 100 companies Represents about 86 percent of market capitalization of the Exchange

Lahore Stock Exchange (LSE)

Established in October 1970. Lahore Stock Exchange is the second largest and first automated stock exchange of Pakistan Second largest stock exchange in the country with a market share of around 12-16% in terms of daily traded volumes.

ISLAMABAD Stock Exchange (ISE)

Incorporated as a guarantee limited Company on 25th October, 1989 in Islamabad

The purpose for establishment of the stock exchange in Islamabad was to cater to the needs of less developed areas of the northern part of Pakistan

Stock Market Effects on the Economy

An increase in stock prices causes an increase in wealth, and consequently an increase in consumer spending. Investment is also affected by higher stock prices. With a higher stock price, a firm can raise more money per share to finance investment projects.

Pakistan Stock Exchange Ups and Downs 2008

April 20: KSE-100 Index crossed the psychological level of 15,000 for the first time in its history Moreover, the increase of 7.4 per cent in 2008 made it the best performer among major emerging markets

Pakistan Stock Exchange Ups and Downs 2008

May 23: Record high inflation in the month of May, 2008. Resulted in sharp fall in Karachi Stock Exchange 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

Pakistan Stock Exchange Ups and Downs 2008

July 17 : Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices August 18: KSE 100 Index rose more than 4% after the announcement of the resignation of President Pervez Musharraf

Pakistan Stock Exchange Ups and Downs 2008

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 October 23:
The government has also given Rs 30 billion guarantee to foreign investors, who would avail put options.

October 27:
The government has established a Rs 20 billion open-end fund to be injected into the stock market for providing a soft landing to the market on its opening on October 27, 2008.

Pakistan Stock Exchange Ups and Downs 2008

12th November KSE-100 index remained unchanged at 9183.14 points 26TH November The KSE-100 index remained at a stand still at 9,187.10. The low trading activities could have resulted that 3 participating banks have shown reluctance to forward their promised share.

1st Dec: KSE-100 index remained unchanged at 9187.10 points

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