history of karachi stock exhchange

8/8/2019 History of Karachi Stock Exhchange

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HISTORY OF KARACHI STOCK EXHCHANGE:

Karachi Stock Exchange is the biggest and most liquid exchange and has been declared the BestPerforming Stock Market of the World for the year 2002. As on March 31, 2006, 663 companieswere listed with A market capitalization of Rs. 3,257.062 billion (US $ 54.28) having listed

capital of Rs. 486.489 billion (US $ 8.11 billion). The KSE 100 Index closed at 11485.90 onMarch 31, 2006.

KSE is well into the 4th year of being one of the Best Performing Markets of the world asdeclared by the international magazine Business Week. Similarly the USA newspaper, USAToday, termed Karachi Stock Exchange as one of the best performing bourses in the world.

Interesting to note that on google trends when you type in the term "stock exchange" the mostpopular place for typing the term stock exchnage is the city of Karachi.

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

Arbitration Committee of the Exchange.

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

In 95 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, 95 the KSE all share index was constructedand introduced on September 18, 1995.

http://www.kse.com.pk/ official website of stock exchange

Karachi is the capital of the province of Sindh, and the most populated city in Pakistan. It islocated on the coast of the Arabian Sea in southeastern Pakistan, northwest of the Indus Delta.The city is the financial and commercial centre as well as the largest port of Pakistan. Population- Census (1998) 9,339,023, Estimate (2006) 11,969,284. Karachi is located in south Pakistan,directly north of the Arabian Sea. The city covers 3527 Square KMs. Karachi mostly comprisesflat or rolling plains with hills on the western and northern boundaries of the urban sprawl. Two

rivers pass through the city: the Malir River and the Lyari River.

Karachi is the financial capital of Pakistan. It accounts for a lion's share of Pakistan's GDP andgenerates about 65 per cent of the national revenue. Most of Pakistan's public and private bankshave head offices in Karachi. Nearly all of these are located on I.I Chundrigar Road (the KarachiWall Street) which is fast becoming home to the high rise headquarters of major corporations.The most notable of these are the Habib Bank Plaza, the tallest building in Pakistan before it wassurpassed by Muslim Commercial Bank's MCB Tower. The Port of Karachi and nearby Port


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Qasim are the two main seaports of Pakistan, and Quaid-e-Azam International Airport is thelargest airport in Pakistan.

HISTORY OF KARACHI STOCK EXCHANGE BY WIKIPEDIA:

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.

Its current premises are situated on Stock Exchange Road, in the heart of Karachi's Business District.

History

Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared theBest Performing Stock Market of the World for the year 2002. As of Dec 8, 2009, 654companies were listed with a market capitalization of Rs. 2.561 trillion (US$ 30.5 billion) havinglisted capital of Rs. 705.873 billion (US$ 10.615 billion). The KSE 100TM Index closed at9645.71 on June 19, 2010.By 30 july total market capitalisation of the KSE reached Rs2.95trillion,approximately 35 billion dollars.

Business

Trading

The exchange has pre-market sessions from 09:15am to 09:30am and normal trading sessionsfrom 09:30am to 03:30pm. The karachi stock exchange has undergone a considerable deal ofdownturn partly due to global financial crisis and partly on account of domestic troubles. Itremained 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 nowrebounced and recovered 20-25% till March 12, 2009. By 30 july 2010 total market

capitalisation of the KSE reached Rs2.95 trillion,approximately 35 billion dollars.

Growth

The KSE is the biggest and most liquid exchange in Pakistan and in 2002 it was declared as theBest Performing Stock Market of the World by Business Week. As of December 8, 2009, 652companies were listed with the market capitalization of Rs. 2.561 trillion (US$ 30.5 Billion)


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having listed capital of Rs. 717.3 billion (US$ 12 billion). On December 26, 2007, the KSE 100Index 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 totalfree 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 a40 story high rise KSE building, as a new direction for future investment.

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

KSE began with a 50 shares index. As the market grew a representative index was needed. OnNovember 1, 91 the KSE-100 was introduced and remains to this day the most generallyaccepted measure of the Exchange. Karachi Stock Exchange 100 Index (KSE-100 Index) is abenchmark used to compare prices overtime, companies with the highest market capitalizationare selected. To ensure full market representation, the company with the highest marketcapitalization 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 thebasis of index trading in future. On August the 29th, 1995 the KSE all share index wasconstructed and introduced on September 18, 1995.

2008 and 2009 Karachi Stock Exchange Crisis

y April 20 : Karachi Stock Exchange achieved a major milestone when KSE-100 Index crossed thepsychological 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.

y May 23: Record high inflation in the month of May, 2008 resulted in the unexpected increase inthe interest rates by State Bank of Pakistan which eventually resulted in sharp fall in Karachi

Stock Exchange.

y July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistanishare prices.

y July 16 : KSE-100 Index dropped one-third from an all-time high hit in April, 2008 as risingpressure on shaky Pakistan's coalition government to tackle Taliban militants exacerbatesconcern about the country's economic woes.

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y August 18: KSE 100 Index rose more than 4% after the announcement of the resignation ofPresident Pervez Musharrafbut 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.[10][11]

y August 28 :Karachi Stock Exchange set a floor for stock prices to halt a plunge that has wipedout $36.9 billion ofmarket value since April.

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y December 15: Trading resumes after the removal of floor on stock prices that was set on August28 to halt sharp falls.

LAHORE STOCK EXCHANGE :

Lahore Stock Exchange (Guarantee) Limited is Pakistan's second largest stock exchange after the

Karachi Stock Exchange. It is located in Lahore, Pakistan.

History

The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under theSecurities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the

needs of the provincial metropolis of the province ofPunjab. It initially had 83 members and washoused in a rented building in the crowded Bank Square area ofLahore. The number of listedcompanies has increased to 519 since its inception. With 37 sectors of the economy and 519listed companies with total capital of Rs. 555.67 billion having market capitalization of aroundRs. 2.51 trillion . The LSE has 152 members of which 81 are corporate, and 54 are individualmembers. The LSE was the first stock exchange in Pakistan to use the internet and currently 50%of its transactions are via the internet.

The Lahore Stock Exchange has opened branches in the industrial cities ofFaisalabad andSialkot for trading. The Sialkot branch is referred to as the "Sialkot Trading Floor"

LSE Index

LSE-25: The Lahore Stock Exchange Twenty Five company index also calculates theperformance ofstocks assuming that all rights issues andbonus share issues only increase thelisted capital. In the case of bonuses or rights the prices of the shares are not adjusted as they arein the case of the LSETRI. However, the LSE25 assumes that dividends paid out by a componentcompany are not reinvested. In summary, in the LSE25, no price adjustments are made when anycomponent company issues cash dividends.

The Lahore Stock Exchange Total Return Index calculates the performance of stocks assumingthat all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if acomponent company issues bonus shares or announces a rights issue it will increase the listedcapital. Additionally, the LSETRI also assumes that all pay-outs by a component company are100% reinvested in the index. Therefore, the LSETRI is adjusted against such payoutsannounced by any of index constituents on its ex-date allowing the index value to remaincomparable over time. Some of the most notable Stock Brokers in Lahore Stock Exchange


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include: Mubashar Latif (President), Azan Mubashar (Executive Vice-President), AbubakarMubashar (C.E.O),

BIDDING:

Bid price

From Wikipedia, the free encyclopedia

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This article is about financial bidding. For other uses, see Bid (disambiguation).

A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It is usuallyreferred to simply as the "bid."

Inbid and ask, the bid price stands in contrast to the ask price or "offer", and the differencebetween the two is called thebid/ask spread.

An unsolicited bid or offer is when a person or company receives a bid even though they are notlooking to sell. A bidding war is said to occur when a large number of bids are placed in rapidsuccession by two or more entities, especially when the price paid is much greater than the askprice, or greater than the first bid in the case of unsolicited bidding.

In the context ofstocktrading on a stock exchange, the bid price is the highest price a buyer of astock is willing to pay for a share of that given stock. The bid price displayed in most quoteservices is the highest bid price in the market. The ask or offer price on the other hand is thelowest price a seller of a particular stock is willing to sell a share of that given stock. The ask oroffer price displayed is the lowest ask/offer price in the market (Stock market).

history of karachi stock exhchange

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