Karachi Stock Exchange

Karachi Stock Exchange is the biggest and most liquid exchange and has been declared as the “Best Performing Stock Market of the World for the year 2002”. As on December 31, 2008, 653 companies were listed with the market capitalization of Rs. 1,858,698.90 billion (US $ 23,527.83 billion) having listed capital of Rs. 750.48 billion (US $ 9.50 billion). The KSE 100 Index closed at 5865.01 on December 31, 2008.

KSE has been well into the 4th year of being one of the Best Performing Markets of the world as declared by the international magazine “Business Week”. Similarly the US newspaper, USA Today, termed Karachi Stock Exchange as one of the best performing bourses in the world.

The market performing during the period June 1998 to December 2008 is given under.

 GROWTH & PROGRESS * As on December 31, 2008  
Today KSE has emerged as the key institution of the capital formation in Pakistan with:-
Listed companies 653, securities listed on the exchange 692: ordinary share 653, Preference shares 14 and debt securities (TFC's) 25.
Listed capital Rs.750,477.55 million (US$ 9,499.72 million).
Market capitalization Rs.1,858,698.90 million (US$ 23,527.83 million).
Average daily turnover 146.55 million shares with average daily trade value Rs.14,228.35 million (US$ 180.11 million).
Membership strength at 200.
Corporate Members are 187 out of which 9 are public listed companies.
Active Members are 163.
Fully automated trading system with T+2 settlement cycle.
Deliveries through central depository company.
National Clearing and Settlement System in place.

  MARKET INDICES 
KSE began with a 50 shares index. As the market grew a representative index was needed. On November 1, 1991 the KSE-100 was introduced and remains to this date the most generally accepted measure of the Exchange. The KSE-100 is a capital weighted index and consists of 100 companies representing about 86 percent of market capitalization of the Exchange. 

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 29, 1995 the KSE all share index was constructed and introduced on September 18, 1995.

KSE has also introduced KSE-30 Index which is calculated using "Free Float Market Capitalization Methodology". The primary objective of the KSE 30 Index is to have a bench mark by which the stock price performance can be compared to over a period of time. In particular, the KSE-30 Index is designed to provide investors with a sense of how large company's scrip's of the Pakistan's equity market are performing.