Karachi Stock Exchange: Difference between revisions

|logo = [[File:Pakistan Stock Exchange Logo.png|200px|centre]]

|country = Pakistan

|mcap = {{PKRConvert|9.2|t}}</small><ref>[http://ksestocks.com/AboutKSE]</ref>

|indexes = [[KSE 100 Index]]<br />[[KSE-30 Index]]<br />[[KSE-All Shares Index]]<br />[[KMI 30 Index]]

|homepage = [http://www.psx.com.pk/ www.psx.com.pk]

}}

The '''Karachi Stock Exchange''' ({{lang-ur|{{nq|'''کراچی بورس'''}}}} or '''PSX-KSE''') 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 is now owned by the [[Pakistan Stock Exchange]], along with the [[Lahore Stock Exchange]] and [[Islamabad Stock Exchange]].<ref name="PSX launches">{{cite news|work=[[Dawn (newspaper)|Dawn]]|title=Pakistan Stock Exchange formally launched|url=http://www.dawn.com/news/1232253}}</ref> The KSE is 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.<ref>{{cite news|title=Pakistan central bank cuts benchmark rate to 42-year low |url=http://www.afr.com/news/world/asia/pakistan-central-bank-cuts-benchmark-rate-to-42year-low-20150524-gh8aqw |date=May 24, 2015 |work=AFRWEEKEND |accessdate=May 24, 2015 |archiveurl=https://www.webcitation.org/6Yl3uo3wi?url=http://www.afr.com/news/world/asia/pakistan-central-bank-cuts-benchmark-rate-to-42year-low-20150524-gh8aqw |archivedate=May 24, 2015 |deadurl=yes |df= }}</ref> In June 2015, [[Khaleej Times]] reported that since 2009, Pakistani equities delivered 26% a year for US dollar investors, making Karachi the best-performing stock exchange in the world.<ref>{{cite news|title=KSE world's best performing frontier stock market: report |url=http://tribune.com.pk/story/896886/kse-worlds-best-performing-frontier-stock-market-report/ |date=June 3, 2015 |work=The Express Tribune |accessdate=Jun 8, 2015 |archiveurl=https://www.webcitation.org/6Z8VNxPmj?url=http://tribune.com.pk/story/896886/kse-worlds-best-performing-frontier-stock-market-report/ |archivedate=June 8, 2015 |deadurl=yes |df= }}</ref><ref>{{cite news |title=Pak equities to extend bull run on strong fundamentals |url=http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/opinionanalysis/2015/June/opinionanalysis_June3.xml&section=opinionanalysis |date=June 1, 2015 |work=Khaleej Times |accessdate=Jun 8, 2015 |archiveurl=https://www.webcitation.org/6Z8VOhmcv?url=http://www.khaleejtimes.com/biz/inside.asp?xfile=%2Fdata%2Fopinionanalysis%2F2015%2FJune%2Fopinionanalysis_June3.xml |archivedate=2015-06-08 |deadurl=yes |df= }}</ref>

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 {{PKRConvert|37|m}}. 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"''<ref>{{cite web|author=Shoaib-ur-Rehman Siddiqi |url= http://www.brecorder.com/top-news/1-front-top-news/221085-kse-one-of-best-performing-stock-exchanges-in-world-pm.html|title=KSE one of best performing stock exchanges in world: PM |publisher=Business Recorder |date= Jan 30, 2015|accessdate=March 1, 2015}}</ref>. 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.

=== 2008 crash ===

* April 20: The KSE achieved a major milestone when the KSE-100 Index crossed 15,000 points for the first time in its history and peaked 15,737 points on 20 April. Moreover, the increase of 7.4% in 2008 made it the best performer among major [[emerging markets]].<ref>[http://www.gulfnews.com/business/money/10204873.html Karachi Stock Exchange reaches record high – Gulf News]</ref><ref>[http://news.monstersandcritics.com/business/features/article_1398911.php/ANALYSIS_Pakistans_stock_market_roaring_on_several_factors Monster & Critics] {{webarchive|url=https://web.archive.org/web/20120307091356/http://news.monstersandcritics.com/business/features/article_1398911.php/ANALYSIS_Pakistans_stock_market_roaring_on_several_factors |date=2012-03-07 }}</ref>

* May 23: Record high inflation in the month of May resulted in the unexpected increase in the [[interest rates]] by [[State Bank of Pakistan]] which eventually resulted in sharp fall at the KSE.<ref>[https://www.bloomberg.com/apps/news?pid=20602005&sid=aDFkw4sRLuk8&refer=world_indices Pakistan Stocks Slump, Led by Banks, After Unexpected Rate Rise – Bloomberg]</ref><ref>[http://dawn.com/2008/05/24/top2.htm Billions wiped off on PSX’s ‘black Friday’ - Dawn.com]</ref>

* July 17: Angry investors attacked the KSE Building in protest at plunging Pakistani share prices.<ref>[http://news.bbc.co.uk/2/hi/south_asia/7511104.stm Protest over Pakistan share slump – BBC News]</ref><ref>[https://www.bloomberg.com/apps/news?pid=20602005&sid=aO4E38y0bgho&refer=world_indices Pakistani Investors Stone Exchange as Stocks Plunge – Bloomberg]</ref>

* July 16: The KSE-100 dropped one-third from its all-time high as raising pressure on Pakistan's coalition government to tackle [[Taliban]] militants exacerbates concern about the country's economic woes.<ref>[https://www.forbes.com/feeds/ap/2008/07/16/ap5219516.html Forbes.com]</ref>

* August 18: KSE-100 rises more than 4% after the announcement of the resignation of President [[Pervez Musharraf]] but [[Credit Suisse Group]] states that Pakistan's post-Musharraf rally at the KSE will be short-lived because of a rising fiscal deficit and runaway inflation.<ref>[http://news.bbc.co.uk/2/hi/business/7567623.stm Pakistan shares up on resignation – BBC News]</ref><ref>[https://www.bloomberg.com/apps/news?pid=20602005&sid=aZ18KTXXC_zw&refer=world_indices Pakistan's Post-Musharraf Rally Will Falter, Credit Suisse Says – Bloomberg]</ref>

* August 28: The Karachi Stock Exchange set a floor for stock prices to halt a plunge that wipes out $36.9 billion of [[market value]].<ref>[https://www.bloomberg.com/apps/news?pid=20602005&sid=awV0ia8PG9Z0&refer=world_indices Pakistan Stock Index Is Little Changed; Trading Limits Remain Bloomberg]</ref>

* December 15: Trading resumes after the removal of floor on stock prices that was set in August.<ref>[https://www.bloomberg.com/apps/news?pid=20602005&sid=aeEYKAYBa.8w&refer=world_indices Pakistan’s Stock Index Falls to 2-Year Low After Lifting Curbs – Bloomberg]</ref><ref>[http://ezine.pk/?The-Avoidable-collapse-of-Karachi-Stock-Exchange-2008---KSE&id=384 The Avoidable collapse of Karachi Stock Exchange 2008 – KSE]</ref>

* [http://www.psx.com.pk/ Pakistan Stock Exchange Website]

{{coord missing|Pakistan}}

{{World Federation of Exchanges}}