Pakistan Stock Exchange: (1994-2019 OVERVIEW)

PAKISTAN STOCK
EXCHANGE
(1994-2019 OVERVIEW)
Group Members:-
Jazib Ahmed Ansari
Kulsoom Arif Hashmi
Maham Mushtaq
Mujtaba Razi
INTRODUCTION &
BACKGROUND
 Pakistan Stock Exchange Limited (PSX) (formerly: Karachi Stock Exchange
(Guarantee) Limited (KSE) was established on September 18, 1947.
 Only five companies were initially listed with a total paid-up capital of 37
million rupees.
 The first index introduced in KSE was based on fifty companies
 Trading used to be carried out on open out-cry system.
 Computerized trading system called Karachi Automated Trading System
(KATS)
LISTINGS IN PSX
 As on September 27th, 2019 there are 554 companies listed in Pakistan Stock
Exchange (PSX)
 Total market capitalization is Rs. 6,409.283bn
 Total 35 sectors listed
 Strict rules and regulations laid out by Securities Exchange Commission of
Pakistan (SECP) & the management of Pakistan Stock Exchange Limited.
 All the listed companies are categorized in various main business sectors
KSE 100 Index Performance from 1995 to 2019
Close
50,000.00
48,000.00
46,000.00
44,000.00
42,000.00
40,000.00
38,000.00
36,000.00
34,000.00
32,000.00
30,000.00
28,000.00
26,000.00 Close
24,000.00
22,000.00
20,000.00
18,000.00
16,000.00
14,000.00
12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Sept-
19
1995 Electric prices
raised by
WAPDA
 Bearish Trend
 Political crisis Close
2,000.00
 Discouraging economic outlook
1,800.00
 Increased in prices by WAPDA 1,600.00
1,400.00
 Outbreak of violence in Karachi 1,200.00
1,000.00
 Index decreased by 26.9% (local
800.00
currency) 600.00
 33.7% (dollar) 400.00
200.00
 41 new companies registered 0.00
Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95 Jul-95 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95
 Market capitalization dropped by 24.3%

i.e. Rs. 327.781 bn
1996 New COAS
Appointed
WC jointly
hosted by
IK Launch
PTI
Mir
Murtaza
Bhutto Dies
National
Assembly
Dissolves
Pak and Sri
 Hope for Better Performance Close
2,000.00
 Political unrest
1,800.00
 Weak macroeconomic indicator 1,600.00
1,400.00
 Mr. Bhutto’s Govt. was removed 1,200.00
 Lack of investor’s confidence 1,000.00
800.00
 KSE-100 index fell by 9.6% in domestic 600.00
currency 400.00
 19.3% in Dollar terms. 200.00
0.00
 Market capitalization increased by
Rs.6732.65m
1997
Elections--- Qarz Utaro
PMLN Win Muhim
 Bullish Trend
Close
 New Govt came into power 2,500.00
 Positive impact 2,000.00
 Extension of capital gain

1,500.00
 Removal of tax on dividends payout

1,000.00
 Exemption of tax on foreigners from
investing in securities 500.00
 New listing companies increased up to

782 0.00
 Market capitalization was Rs. 524.148 bn

Nuclear Test SBP opens new Foreign
1998
Currency Accounts
UN deny Nuclear power

status to Pak and Ind
 Bearish Trend, two major events

Close
First nuclear tests, effects the financial sector 1,800.00
 Imposition of economic sanctions by foreign 1,600.00
countries 1,400.00
 Freezing of foreign currency accounts 1,200.00
1,000.00
Second the controversy between IPP and
800.00
government of Pakistan about regulating the
Hubco project 600.00
400.00
 New listed companies decreased by 774
200.00
 One new company was listed in the market 0.00

Jan-98 Feb-98 Mar-98 Apr-98 May- Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 Nov-98 Dec-98
98
 Market capitalization also declined (Rs.
301.1032 bn)
Pak won Sharjah
Cup
1999
Kargil War ends
bw Pak vs Ind
 Extraordinary volatility in 1999

 External debt restructuring agreement with Close
1600
multinational and bilateral lenders
1400
 KSE-100 index touch 1400 points
1200
 Kargil crisis in Kashmir sent the market back to 1100
1000
 Political uncertainty
800
 Government’s focus completely removed from the
economy 600
 No new company listed in KSE 400
 Listed companies decreased up to 765 200
 Market capitalization slightly increased up to Rs. 0

Jan-99 Feb-99 Mar- Apr-99 May- Jun-99 Jul-99 Aug- Sep-99 Oct-99 Nov- Dec-99
366.670 bn 99 99 99 99
Nawaz Sharif
along with
2000
family, sent
PM introduce into exile in
Local Govt Saudi Arabia
Ordinance
 2000 started with the credibility of

government of Pakistan
Close
 Crackdown on bank loan defaulters had 2,500.00
resulted in Rs. 10bn being recovered

 Worth-noting that while there was an increase 2,000.00
in price and daily trading volume, no

significant improvement in the fundamentals 1,500.00
of most of the companies
 Only three new companies were listed 1,000.00
 Listed companies reached up to 741

500.00
 Market capitalization was Rs.382.736 bn
0.00
US President Bush
meets President
2001
Musharraf in New
York and assures
additional aid of one
billion dollar.
 2001, quite dull year
 Reduction of KSE-100 index

Close
 The reasons were uncertainty regarding T+3
1,600.00
settlement system and Crack down operation
by National Accountability Bureau on certain 1,400.00
elements in the market 1,200.00
 The virtual removal of a leading investment 1,000.00
bank from the stock market

800.00
 Attacks in New York and Washington, and on

600.00
Indian parliament, the Indian Government
with drew its high commission from Pakistan 400.00
200.00
 Clash between SECP, and KSE
0.00
 Listed companies were 737 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01
 Market capitalization was Rs 296.144 bn

General
election
Musharraf President General held in the
wins in a Musharraf issues country
referendum the Legal
2002
Framework Order Mir
2002 Zafarullah
Khan
Jamali
sworn in
as Prime
 Market was declared as the best performing Minister
stock market Close

3,000.00
 KSE100 index finishes at 2701.41
 gain of 1428.35 points 2,500.00
 Market capitalization rose to Rs. 599.93 bn 2,000.00
 Low interest rates 1,500.00
 Strong local currency 1,000.00
 Karachi Automated Trading System (KATS) 500.00

was introduced
0.00
Jan-02 Feb-02 Mar-02 Apr-02 May- Jun-02 Jul-02 Aug- Sep-02 Oct-02 Nov- Dec-02
02 02 02
General
US announces $3- Musharraf
billion five-year Lahore-Delhi bus survived an
economic service resumed assassination
assistance package after suspension attempt in
2003
for Pakistan of 18 months. Rawalpindi.
 Bullish Trend
 KSE-100 index touched the highest point Close

i.e.4604.02 5,000.00
4,500.00
 Market capitalization of Rs 1,021 bn
4,000.00
 Significant increase in corporate profit 3,500.00
 Improvement in Pak-India relations 3,000.00
2,500.00
 lower interest rates 2,000.00
 inflow of loans and aid 1,500.00
1,000.00
 At KSE, energy, cement and fertilizer sectors
500.00
remained in the limelight 0.00
 Automobile sales during FY03 soared by 46%
 DG Khan Cement announced a cash dividend
General Musharraf
won a vote of Shaukat Aziz
becomes Prime
2004
confidence in the
Senate, National Minister.
Assembly, and
provincial assemblies.
 Bullish Trend
Close
 Market capitalization and KSE 100 index have
7,000.00
increased by 70% and 44%
6,000.00
 Fast growth momentum in vital sectors, like fuel
and energy, transport and communication, banking 5,000.00
and finance and cement 4,000.00
 Main contributors are good corporate earnings, 3,000.00
restoration of investors’ confidence, improvement 2,000.00

in macroeconomic environments
1,000.00
 Settlement of
political disputes with neighboring countries 0.00
 Market capitalization reached up to Rs. 1723.454

bn
Government of
Pakistan launches
2005
country-wide
A devastating
crackdown against
earthquake in Kashmir
extremist elements.
and NWFP kills over
80 thousands people.
 Bullish trend in KSE
 KSE-100 index first time cross Close

10000 points. 12,000.00
 One major development, was the

introduction of CFS(Continuous Funding 10,000.00
System)
8,000.00
 Limit was later on raised from Rs12 billion
to Rs 25 billion.
6,000.00
 Stable macroeconomic environment,
adequate liquidity in the market
4,000.00
 Good operating financial results from the
majority of the blue chips companies. 2,000.00
 Index shoots by10303.15 points

0.00
 Market capitalization was Rs. 2467.9 bn Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05
Dr. Shamshad Akhtar
assumes office of State Bank
2006
Governor having the first Process to release over
woman Governor of SBP. Pervez Musharraf lays 1600 women prisoners
foundation-stone of from 55 jails across starts
Diamir-Bhasha dam. after Presidential
Ordinance.
 Bullish Trend
 KSE-100 crossed 12000 points and reached Close

12273.77 points. 12,000.00
 Main reasons are the consistent and 11,500.00

transparent
11,000.00
 Economic policies
10,500.00
 a successful privatization process, attracting
foreign investors 10,000.00
 Sound monetary policy of the SBP 9,500.00
 Four new companies were listed and listed

9,000.00
companies reached up to 658.
 The market capitalization increased up to Rs. 8,500.00
2801 bn
returned
Bhutto, Benazir Pakistan after 7
returned to years of forced
Pakistan, after exile exile.
President of about 8 years. Bhutto,
Musharraf Benazir
dismissed Chief
2007
assassinated
Justice of Pakistan, Pervez in a
Iftikhar. Musharraf blast/bullet
imposed attack in
emergency Rawalpindi.
 Strong year for Pakistan's equity markets.

Close
 Positive factors that contributed to this year were speedy 16,000.00
privatization process
14,000.00
 Attracting foreign investors
12,000.00
 Allowing foreign investors to repatriate their funds 10,000.00
without any restriction
8,000.00
 Reduction in interest rate

6,000.00
 Recovery of outstanding/over due loans 4,000.00
 Lower inflation 2,000.00
0.00
 Rising export earning; stable exchange rate; declining Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07
debt burden; and higher industrial growth also improved
 Outperform of Banking sectors. Market capitalization

increased up to Rs. 4,019 bn
Yusuf Raza
Gilani is Pervaiz Musharraf
elected as the steps down as
2008
new Prime President of
Elections 2008
Minister.
Pakistan. Asif Zardari
takes oath
as President
of Pakistan.
 2008 started with uncertain situation.
 The reasons were the assignation of Benazir

Bhutto, poor law and order situation Close
16,000.00
 Beginning of 2008 appears promising for the
14,000.00
capital market in Pakistan irrespective
12,000.00
 KSE-100 index gained 11.6% in the mid of
10,000.00
April 2008 and reached the highest level of
15,676 points on April 18, 2008 with a gain 8,000.00
of 1747 points on the index level at the 6,000.00
beginning of 2008
4,000.00
 The stock market has experienced of sudden 2,000.00
fall in the KSE-100 index more than 62%

0.00
 Increase in interest rate and inflation
 Decline in foreign exchange reserves

2009 Militants attack bus
with the touring Sri
Lankan cricket team.
Pakistan Army launched
Operation Rah-e-Rast
 KSE‐100 index has risen by74 %
 Even after the recent sell off in equities, the

Close
KSE‐100 index has gained 33%. 10,000.00
 Foreign portfolio investment (FPI) in the KSE 9,000.00
has risen sharply during 2009. 8,000.00
7,000.00
 According to National Clearing Company of
Pakistan Limited (NCCPL), net inflow of foreign 6,000.00
portfolio investment increased by US$ 431 5,000.00
million in Pakistan. 4,000.00
3,000.00
 Restoration of macroeconomic stability
2,000.00
 The IMF program (signed in November 2008)
1,000.00
 The upgrading of Pakistan’s sovereign rating 0.00

 KSE‐100 index crossed 10,000 points

Extensive flooding
after monsoon rains.
At least 1,600 people
2010
were killed
Pakistan adopts the
18th amendment to Crash of
the Constitution Airblue Flight
202
 Bullish Trend
 Currency Stability Close

14,000.00
 FPI investment increased

12,000.00
Important Measures Taken 10,000.00
 Introduction of corporate Bonds Automated 8,000.00
Trading System 6,000.00
 Restructuring of Net Capital Balance require 4,000.00
ment 2,000.00
 Entrance of new companies into the market. 0.00

Jan-10 Feb-10 Mar-10 Apr-10 May- Jun-10 Jul-10 Aug- Sep-10 Oct-10 Nov- Dec-10
10 10 10
Salmaan Taseer, the
governor of Punjab, is
2011
shot by one of his
bodyguard
The US Navy Seals
killed Osama bin
Laden in the city of
Abbotabad
The KSE-100 index recorded a

bullish trend during first half 13,000.00
Close
The mainreason was foreign 12,500.00
investment in the capital market

12,000.00
Bearish Trend recorded in the

11,500.00
second half
11,000.00
100 index decline by 5.6%
10,500.00
Reasons were
10,000.00
Strained Pak and US relation Jan-11 Feb- Mar- Apr- May- Jun- Jul-11 Aug- Sep-
11 11 11 11 11 11 11
Oct- Nov- Dec-
11 11 11
Weak economic indicators

Foreign investors withdraw $122m
Over 314 people die in
factory fires in Karachi
and Lahore.
2012
Raja Pervaiz
Ashraf is elected
as Prime Minister
of Pakistan
 Bullish Trend
Close
 A total of 591 companies were listed at the Karachi 18,000.00
Stock Exchange 16,000.00
14,000.00
 Market capitalization was Rs. 3,730.489 bn
12,000.00
 Increase in Foreign Exchange Reserves 10,000.00
8,000.00
 Average daily volume was 108.21m shares
6,000.00
 The investment by foreign investors in the capital 4,000.00
markets depicted a net outflow of USD 176.303 2,000.00
million. 0.00
Jan-12 Feb-12 Mar- Apr-12 May- Jun-12 Jul-12 Aug- Sep-12 Oct-12 Nov- Dec-12
12 12 12 12
 The closing value stood at 14,617.97 points

2013
 Bullish Trend
 10th Best Stock Market
 Net inflows of $403m
 Textile and Cement Sectors, outperformers
 Market capitalization stood at Rs. 4,446.90 bn
 The closing level of KSE 100-index stood at

21,823.05
 Growth of 58.1%
More than 60 people
were killed and more
than 110 people were
injured in a suicide attack
2014
on the Pakistan side of
the Wagah border
A bomb blast in a The process of Long

market kills 26 March and Sit-In started
people in the by PTI and PAT.
 Bullish Trend outskirts of APS Attack
Islamabad.
 Third Best Stock Market Close

35,000.00
 Indus Motor, Pak Suzuki Motors, Pioneer Cement,
Kohinoor Textile Mills Ltd were outperformers 30,000.00
 Dollar Depreciate 25,000.00
 The software and computer services sector posted 20,000.00
the highest cumulative stock

15,000.00
 Worst Performers were oil and gas (-26%), tobacco
(-20%), telecom (-19%) and banks (-7%) 10,000.00
 Improvement in Foreign exchange reserves 5,000.00
 Gained by 6,870 points 0.00

A massive
blackout strikes
Pakistan, leaving
2015
as much as 80
percent of the
country without A bombing of a
electricity church in Lahore
kills at least eleven
people with 48
more injured.
 Exceptional performance of the Pakistani stock
market Close
37,000.00
 Beginning Points 20701.58 and closing points
36,000.00
were 34826.51 35,000.00
34,000.00
 Due to stable political environment
33,000.00
 Investment projects backed by China 32,000.00
31,000.00
 stable exchange rate against the dollar
30,000.00
 Increased confidence shown by the multilateral 29,000.00
donor agencies 28,000.00
27,000.00
Jan-15 Feb-15 Mar-15 Apr-15 May- Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
 Market capitalization stood at Rs 7421.03 bn 15
PIA plane PK-
661 crashed
2016
during flight
First season Pakistan killing 47 people
Super League
 Asia’s best-performing market
 KSE 100-share Index, rise by 45.6% Close

60,000.00
 Average volumes increased by 14% to 281 million
shares 50,000.00
 Lower interest rate

40,000.00
 foreigners remained net sellers

30,000.00
 Three initial public offerings that raised Rs 4.2bn
 Automobile, cement, oil and gas stocks remained 20,000.00
the star performers

10,000.00
 Fertiliser sector underperformed
0.00
A unanimous verdict by
the Supreme Court of
Pakistan disqualifies
2017
Prime Minister Nawaz
Sharif from office
The second season of the
Pakistan Super League Pakistan wins 2017
began ICC Champions
Trophy defeating
India in the finals
 Bearish Trend
 Disqualification of Nawaz Sharif

Close
 Heavy Losses and ended at lowest level 60,000.00
 Decline in international crude prices

50,000.00
 Depreciate in rupee
40,000.00
 Fertilizer declined 6.3%,cement shed 5% while
banking sector’s market capitalization contracted by 30,000.00
3.2%
 OGDC, ENGRO were leading losers 20,000.00
 KSE-100 Index posted an absolute negative return of 10,000.00
15.34%
0.00
PTI leader Imran
Khan took oath as
Prime Minister of
2018
Islamic republic of
Pakistan.
The twenty-fifth amendment to

2018 elections to the Senate of the Constitution of Pakistan
Pakistan were held. was approved The 2018 Pakistani The 2018
general elections Pakistani
were held. presidential
election were
 Bearish Trend held.
 currency devaluation Close

50,000.00
 Higher interest rate and inflation
45,000.00
 high external and fiscal deficit and delay in International
40,000.00
Monetary Fund program.
35,000.00
 Political uncertainty
30,000.00
 Economic team has not been able to win the confidence of 25,000.00
the traders and investors 20,000.00
 Pakistan Debt Burden 15,000.00
 Decrease in investor’s confidence 10,000.00
5,000.00
0.00
2019 Fell down Indian
jets
 KSE 100-share Index recorded an increase of 127.15
points
 HBL (-1%) and NBP (-2.5%) Close
45,000.00
 while ABL (+2.5%) and MCB Bank (+0.3%)
40,000.00
 International crude oil prices held steady
35,000.00
 Pakistan Petroleum (-1%), Oil and Gas Development 30,000.00
Company (-0.7%) and Pakistan Oilfields (-0.9%) 25,000.00 Close
 A rally was witnessed in the cement sector where Cherat 20,000.00
Cement (+4.2%), Lucky Cement (+2%), DG Khan 15,000.00
Cement (+2.6%) and Fauji Cement (+3.9%). 10,000.00
5,000.00
 $6bn aid by IMF
0.00
 Foreign institutional investors were net sellers of Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sept-19
Rs146.7 million
CONCLUSION

Pakistan Stock Exchange: (1994-2019 OVERVIEW)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pakistan Stock Exchange: (1994-2019 OVERVIEW)

Uploaded by

Copyright:

Available Formats

PAKISTAN STOCK

 Increased in prices by WAPDA 1,600.00

 33.7% (dollar) 400.00

 Market capitalization dropped by 24.3%

 Weak macroeconomic indicator 1,600.00

 Lack of investor’s confidence 1,000.00

 19.3% in Dollar terms. 200.00

 Positive impact 2,000.00

 Extension of capital gain

 Removal of tax on dividends payout

 New listing companies increased up to

 Market capitalization was Rs. 524.148 bn

UN deny Nuclear power

 Bearish Trend, two major events

 Imposition of economic sanctions by foreign 1,600.00

 Freezing of foreign currency accounts 1,200.00

 One new company was listed in the market 0.00

 Extraordinary volatility in 1999

 No new company listed in KSE 400

 Listed companies decreased up to 765 200

 Market capitalization slightly increased up to Rs. 0

 2000 started with the credibility of

resulted in Rs. 10bn being recovered

in price and daily trading volume, no

 Listed companies reached up to 741

 2001, quite dull year

 Reduction of KSE-100 index

elements in the market 1,200.00

 The virtual removal of a leading investment 1,000.00

bank from the stock market

 Attacks in New York and Washington, and on

 Market capitalization was Rs 296.144 bn

stock market Close

 Market capitalization rose to Rs. 599.93 bn 2,000.00

 Low interest rates 1,500.00

 Strong local currency 1,000.00

 Karachi Automated Trading System (KATS) 500.00

 KSE-100 index touched the highest point Close

 Improvement in Pak-India relations 3,000.00

 inflow of loans and aid 1,500.00

and finance and cement 4,000.00

 Main contributors are good corporate earnings, 3,000.00

restoration of investors’ confidence, improvement 2,000.00

 Market capitalization reached up to Rs. 1723.454

 Bullish trend in KSE

 KSE-100 index first time cross Close

 One major development, was the

 Index shoots by10303.15 points

 KSE-100 crossed 12000 points and reached Close

 Main reasons are the consistent and 11,500.00

 Sound monetary policy of the SBP 9,500.00

 Four new companies were listed and listed

 Strong year for Pakistan's equity markets.

 Allowing foreign investors to repatriate their funds 10,000.00

 Reduction in interest rate

 Recovery of outstanding/over due loans 4,000.00

 Lower inflation 2,000.00

debt burden; and higher industrial growth also improved

 Outperform of Banking sectors. Market capitalization

 The reasons were the assignation of Benazir

of 1747 points on the index level at the 6,000.00

 The stock market has experienced of sudden 2,000.00

fall in the KSE-100 index more than 62%