KSE

The biggest Stock exchange of Pakistan located in Karachi is the Karachi Stock Exchange .
Due to the liquidity offered by the Karachi Stock Exchange , it is known as stated as the
“Best Performing Stock Market of the World for the year 2002”.
Evolution of the Karachi Stock Exchange By 2007, the number of listed companies reached 754 by the year 2007. The market
capitalization at the same time was US $52 billion whereas the listed capital was US $8.27
billion. Following the estimates of the State bank Of Pakistan , we see that the foreign
investments in the capital market is as large as US $ 523 million.
The performance of the Karachi Stock Exchange has been wavering since the beginning of 2007.
This could be because 2007 is an election year.
Karachi Stock Exchange Indices The Karachi Stock Exchange uses the following index:
• 50 Shares Index- T his index was used initially but as the market grew there was a need
for a new index.
• KSE-100: The KSE-100 is a benchmark used to compare prices over a period of time. For the
construction of the KSE-100 companies with the highest market capitalization. To make the
selection more representative, the companies from all the sectors are chosen. The index was
introduced in 1991 with 1000 as base points. By 2001 it has grown to 1770 points, in 2005 to
9989 points and reached a peak of 12285 by 2007. The KSE-100 is a capital weighted index
comprised of 100 companies.
KSE-30 : This index was introduced at the end of 2006. it is comprised of 30 most floating
stocks. By 1997 the KSE-30 traded at 14199 points.
Arbitration The disputes that arise between members and the investors in the Karachi Stock Exchange are
resolved through the advices of the Arbitration Committee of the Exchange.