Karachi Stock Exchange Of

Pakistan

History :
The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh,Pakistan. Founded in
1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings.
Arachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared the “Best
Performing Stock Market of the World for the year 2002”. As of Dec 8, 2009, 654 companies were listed
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 100TM Index closed at 9645.71 on June 19, 2010.By 30 July total
market capitalization of the KSE reached Rs2.95 trillion, approximately 350 billion dollars.

Business:
The exchange has pre-market sessions from 09:15am to 09:30am and normal trading sessions from
09:30am to 03:30pm. he Karachi stock exchange has undergone a considerable deal of downturn partly
due to global financial crisis and partly on account of domestic troubles. It remained suspended in excess
of 4 months and resumed normal trading only on December 15, 2008. The KSE 100 Index and KSE 30
Index after hitting the low around mid January has now rebounded and recovered 20-25% till March 12,
2009. By 30 July 2010 total market capitalization of the KSE reached Rs2.95 trillion, approximately 35
billion dollars. It was newly appointed in 18th September 1948

Growth:

e KSE is the biggest and most liquid exchange in Pakistan and in 2002 it was declared as the “Best
Performing Stock Market of the World” by Business Week. As of December 8, 2009, 652 companies were
listed with the market capitalization of Rs. 2.561 trillion (US$ 30.5 Billion) having listed capital of Rs. 717.3
billion (US$ 12 billion). On December 26, 2007, the KSE 100 Index reached its highest value ever and
closed at 14,814.85 points.

Foreign buying interest had been very active on the KSE in 2006 and continued in 2007. According to
estimates from the State Bank of Pakistan, foreign investment in capital markets total about US$523
Million. According to a research analyst in Pakistan, around 20pc of the total free float in KSE-30 Index is
held by foreign participants.

KSE has seen some fluctuations since the start of 2008.

Karachi stock exchange Board of Directors has recently (2007) announced plans to construct a 40 story
high rise KSE building, as a new direction for future investment.

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

KSE began with a 50 shares index. As the market grew a representative index was needed. On
November 1, 91 the KSE-100 was introduced and remains to this day the most generally accepted
measure of the Exchange. Karachi Stock Exchange 100 Index (KSE-100 Index) is a benchmark used to
compare prices overtime, companies with the highest market capitalization are selected. To ensure full
market representation, the company with the highest market capitalization from each sector is also
included.

In 1995 the need was felt for an all share index to reconfirm the KSE-100 and also to provide the basis of
index trading in future. On August the 29th, 1995 the KSE all share index was constructed and introduced
on September 18, 1995.

2008 and 2009 Karachi 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 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

KSE 100 Index:

Karachi Stock Exchange 100 Index (KSE-100 Index) is a stock index acting as a benchmark to
compare prices on the Karachi Stock Exchange (KSE) over a period of time. 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.

Top 30 KSE 100 Index Companies:

Before going to the list of top 30 companies, it is important that there are more than 1000 companies in
Pakistan. The following is a list of 30 companies with the highest market capitalization volume and their
respective weight ages in the index and account for over 80% of the KSE index as of February 20, 2008:

Number Company Name Weightage (%) Market Capitalization (PKR)

1 OGDCL 14.14 550,948,930,000

2 MCB 7.17 279,583,150,000

3 National Bank of Pakistan 5.43 211,726,900,000

4 Pakistan Petroleum 5.06 197,201,080,000

5 Standard Chartered Bank 4.41 171,704,800,000

6 PTCL 4.28 166,810,800,000

7 United Bank Limited 4.13 161,025,160,000

8 Jahangir Siddiqui & Company 2.66 103,600,000,000

9 Pakistan State Oil 2.08 81,034,440,000

10 Allied Bank Limited 2.01 78,371,670,000

11 Nestlé Pakistan 1.93 75,280,250,000

12 Pakistan Oilfields 1.71 66,824,220,000

13 Fauji Fertilizer Company 1.68 65,607,390,000

14 ABN AMRO 1.63 63,666,370,000.

15 Engro Chemical 1.45 56,492,990,000

16 Arif Habib Securities 1.40 54,660,000,000

17 NIB Bank 1.27 49,320,250,000

18 Kot Addu Power Company 1.19 46,565,400,000

19 EFU General Insurance 1.16 45,300,000,000

20 Bank of Punjab 1.13 43,869,030,000

21 Fauji Fertilizer Bin Qasim 1.06 41,474,480,000

22 Bank Alfalah 1.03 39,975,000,000

23 Adamjee Insurance 1.01 39,258,300,000

24 Pakistan Tobacco Company 0.99 38,707,280,000

25 Sui Northern Gas Pipelines 0.98 38,300,100,000

26 Hub Power Company 0.98 38,128,240,000

27 Dawood Hercules Chemicals 0.91 35,549,620,000

28 Habib Metropolitan Bank 0.91 35,354,280,000

29 EFU Life Assurance 0.89 34,750,000,000

30 Lucky Cement 0.86 33,593,480,000

KSE 30 Index:

 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 13 July, 2007, KSE-30 Index reached its highest ever level of 17,162.45.