The Karachi Stock Exchange 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. 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. 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.

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.

Karachi Stock Exchange 100 Index (KSE-100 Index) is a stock index acting as a benchmark to
compare prices on the Pakistan Stock Exchange (PSX) over a period. In determining
representative companies to compute the index on, companies with the highest market
capitalization are selected. However, to ensure full market representation, the company with the
highest market capitalization from each sector is also included.
KSE ImPACT ON ECONOMY

The economy of Pakistan is the 23rd largest in the world in terms of purchasing power parity
(PPP), and 42nd largest in terms of nominal gross domestic product. Pakistan has a population of
over 207 million [28] (the world's 5th-largest), giving it a nominal GDP per capita of $1,641 in
2018,[29] which ranks 147th in the world and giving it s PPP GDP per capita of 5,709 in 2018,
which ranks 130th in the world for 2018. However, Pakistan's undocumented economy is
estimated to be 36% of its overall economy, which is not taken into consideration when
calculating per capita income.[30] Pakistan is a developing country[31][32][33] and is one of the
Next Eleven countries identified by Jim O'Neill in a research paper as having a high potential of
becoming, along with the BRICS countries, among the world's largest economies in the 21st
century.[34] The economy is semi-industrialized, with centres of growth along the Indus River.
[35][36][37] Primary export commodities include textiles, leather goods, sports goods,
chemicals, carpets/rugs and medical instruments.[38][39] Growth poles of Pakistan's economy
are situated along the Indus River;[36][40] the diversified economies of Karachi and major urban
centers in the Punjab, coexisting with lesser developed areas in other parts of the country.[36]
The economy has suffered in the past from internal political disputes, a fast-growing population,
mixed levels of foreign investment.[41] Foreign exchange reserves are bolstered by steady
worker remittances, but a growing current account deficit – driven by a widening trade gap as
import growth outstrips export expansion – could draw down reserves and dampen GDP growth
in the medium term.[42] Pakistan is currently undergoing a process of economic liberalization,
including privatization of all government corporations, aimed to attract foreign investment and
decrease budget deficit.[43] In October 2016, foreign currency reserves crossed $24.0 billion[2]
which has led to stable outlook on the long-term rating by Standard & Poor's.[44][45] In 2016,
BMI Research report named Pakistan as one of the ten emerging economies with a particular
focus on its manufacturing hub.[46] In October 2016, the IMF chief Christine Lagarde confirmed
her economic assessment in Islamabad that Pakistan's economy was 'out of crisis'[47] The World
Bank predicts that by 2018, Pakistan's economic growth will increase to a "robust" 5.4% due to
greater inflow of foreign investment, namely from the China-Pakistan Economic Corridor.[48]
According to the World Bank, poverty in Pakistan fell from 64.3% in 2002 to 29.5% in 2014.
[49][50][51] The country's worsening macroeconomic position has led to Moody's downgrading
Pakistan's debt outlook to "negative".
Pakistan's e-trading mainly involves buying and selling goods and services using internet or
telephone, through the use of electronic means such as computer, fax machine, cellular phone,
automated teller machines (ATM) and other electronic appliances with or without using inter-
net. Online banking, e-ticketing for air travelling, share trading in stock exchange are few
examples of e-commerce of modern advancement.[1] With its potential, e-trading can reduce the
cost per transaction, increase efficiency, support contest, lower prices and boost international
demand. It can open new area for business in service sector like on-line education, medical
services, consultancy and data exchange. It can also provide expansion in trade through domestic
and international market research, advertising and marketing. In the financial services area it can
make easy and speedy transactions and transfer of money at a minimum risk. The interesting
feature of online trading is that an investor simply sitting in his office or home can buy or sell
through Internet via mobile/tablet or PC and before being an experienced trader he may learn a
lot by watching market screens or web portals at his convenience.

The term e-trading (or electronic trading) covers a series of systems ranging from simple order
transmission service to full-fledged trade execution. e-trade is location neutral and is scale able
that mainly provides electronic order executed from users to the system owned by the seller or
manufacturer. Electronically distribution of offer with provision of transaction details i.e.
description of offer, quality, cost, guarantee, validity, discounts, quantity etc. is carried out
through automated trade execution.[2] Most commonly, three categories are well recognized
under e-commerce, namely:[3] (i) Business-to-consumer (B2C) e-commerce: customers deal
directly with the organization, avoiding any intermediaries (ii) Business-to-business (B2B)
participants are organizations (iii) Consumer-to-consumer (C2C) participants are individuals,
with one serving as the buyer and the other as the seller E-commerce is the name given to
commerce activities, e.g. sale, purchase, transfer, or exchange of products, services and/or
information, that are conducted using the electronic means and technologies. However, in the
general sense e-commerce is simply referred to online transactions. Sometimes the terms e-
commerce and e-business are used interchangeably but they are distinct concepts involving three
and four integrations respectively. E-business is more difficult as compared to e-commerce. E-
marketplace is one of the forms of e-commerce organizations with online trading and online
shopping, where buyers and sellers meet to exchange goods, services, money or information or
any consideration thereof.[4] E-commerce in Pakistan' was first started in 2001. With the ban of
PayPal services in Pakistan, eCommerce business companies and merchants had to rely on cash
on delivery, and bank payment methods. There was no dedicated online payment service
operating in Pakistan, which was also not favorable for online buyers in Pakistan. However, the
need was fulfilled to an extent with the launch of mobile payment systems in Pakistan. In
October 2009, Telenor launched "Easypaisa" Mobile Account Service through which users could
pay bills, transfer money domestically, internationally and even can save money in their Easy
Paisa Mobile Account

Investment and Finance Shares trading in stock exchange can provide reward and investment in
stocks may increase in value besides paying dividends to its investor. Shareholder receives
rewards when the company performs well and the value of shares goes up. But if the company
does poorly, the share price falls down and the value of investment will be reduced. Among other
issues, the performance of shares market, economic environment, and political stability are all
responsible for increase or decrease in the value of investments. Therefore, trading in shares
market is regarded as investment in “risk capital”. Strength to sustain this risk with careful
planning results in reward and shareholders can receive the prospective return on their
investment as much higher than that on other investments.[12] Shares-trading All companies
engaged in stock trading with or without on line trading platform are required to observe the
Securities and Exchange Commission of Pakistan as the financial regulatory agency in Pakistan
for their business.[13] Online share trading in Pakistan is available in 3 stock markets Karachi
Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE). An
investor with a minimum amount of Pakistani Rupees 25,000/ to 1,00,000/ (or equivalent) can
open an account with broker and do stock trade online. Online trading can be availed by resident
and non-resident investors, subject to meeting criteria prescribed by the regulatory authority.[14]
Government's support to capital market for e-trading promotion To encourage the general public
towards investment in stocks by availing online facilities, Government of Pakistan has taken
some initiatives to have maximum domestic as well as foreign investment in Pakistan’s shares
market. Listed below are some steps taken in this behalf: (i) IPO: (Initial public offering) SECP
has introduced the concept of e–IPO, i.e. electronic submission of subscription form, which
enables the investors to make application for subscription of shares via internet.[15] (ii) Financial
Literacy: The Lahore Stock Exchange is proactive in encouraging financial literacy in the South
Asian nation. In 2014, the LSE commenced an online training competition for participants to be
trained and familiarized with the stock market.[16] (iii) e-Dividend' service: Central Depository
Company (CDC) of Pakistan Limited has introduced e-Dividend service for stock market. This
service provides transfer of dividend warrant and bonus issue of certificates electronically which
saves time and expenses, by crediting cash or certificate in the bank account or investors’
account with his stock broker respectively.[17] (iv) Payment by Credit Cards: SECP has
introduced in capital market payment of fee through credit cards with a view to promote the
paperless environment towards its e-commerce regime. This facilitates stakeholders submit
returns/forms online without visiting banks or affiliated offices of SECP[18] e-banking in
Pakistan The rise of e-payment products like e-wallets, m-wallets, multi-purpose cards and smart
applications evolved by new technologies like Near Field Communications (NFC) cards and
non-bank players like Payment System Operators (PSOs) and Payment System Providers (PSPs)
are incoming to the marketplace for joint manufactured goods or service modernization. The
State Bank in its annual payment system review for the Financial year 2013-14 has disclosed that
Pakistan shows its advancement towards quickly emergent international payments practices, with
reasonable increase in usage of e-banking as recorded in Financial Year 2013-14.[19] Per
quarterly reports, 61.7 million transactions through ATMs with an increase of 10.2% in ATMS
uses have been witnessed during 2013.[20] The quarterly report of October–December 2014 also
recorded 112.3 million of e-banking transactions with reported amount of Rs.8.8 trillion. Also
users of internet and mobile banking hit 18.62 million in the period under reference [21]

History 1991-2006 (Steady growth) The index was launched in November 1991 with a base of
2,000 points. By February 2007, it had skyrocketed to 12,285 points.[1] 2007 (Record breaking
growth) KSE-100 index touched the highest ever benchmark of 14,814 points on December 26,
2007, a day before the assassination of former Prime Minister Benazir Bhutto, when the index
nosedived.[2] 2008 Global 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 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

The Karachi Stock Exchange has launched the KSE-30 Index with base value of 10,000 points,
formally implemented from Friday, September 1, 2006. The main feature of this index that
makes it different from other indices are: KSE-30 index is based only on the free-float of shares,
rather than on the basis of paid-up capital. The other indices in Karachi Stock Exchange
represents total return of the market. That is, when a company announces a dividend, the other
indices at KSE are not reduced/adjusted for that amount of dividend (whether cash or
bonus).Whereas, KSE-30 Index is adjusted for dividends and right shares. At the end of 24
December, 2014, KSE-30 Index reached its highest ever level of 20,830.07.

Top 10 KSE 100 Index Companies Below is the list of top 10 companies with the largest market
capitalization volume and their respective weighting in the index. These companies account for
over 74% of the index as of July 2013.
Pakistan's Economic Outlook

Pakistan's economy is going through a boom & bust cycle that sees it back at the door of the
International Monetary Fund (IMF). When the debt is soaring, the current account deficit is
widening, reserves are falling and the currency has been devalued over 34% since the December
2017. High inflation is another challenge for Pakistan's economy, where the consumer price
index has risen to the highest levels since 2013, inflation is way above the central bank's average
forecast range of 6.5 percent to 7.5 percent for the year ending June. Due to which, some
analysts are expecting another rate increase of 50-100 basis points in the short run. The central
bank has already raised the rates by cumulative 475 basis points since December 2018 to
maintain the financial blowouts from Pakistan's current account deficit and balance of payment
crisis. And now, Pakistan's' New government lead by PM Imran Khan is looking for 13th bailout
package from IMF since the late 1980s looking to meet the current account & balance of
payments crisis. However, the negotiations are still underway and delay in the agreement is
causing the currency value, while local stocks are soaring to the lowest levels in three years.
Causing the KSE-100 index to soar more than 10,000 points since the second quarter of 2018.

KSE-100 Technical Outlook

So now, let's take a quick look at the technical view of the KSE-100 index using Elliott wave
theory. The index has ended the cycle from all time in Grand Super Cycle within wave ((I)) at
53127 high seen at 5/25/2017 peak. Since then, the index has made a strong pullback in the
Grand Super Cycle wave ((II)). The pullback from 2017 peak is unfolding as zigzag structure
looking to extend lower towards 31732-22247 100%-161.8% Fibonacci extension area. Then
from there, the buyers are expected to appear in that blue box area looking for more upside or for
bigger 3 wave reaction higher at least.