The Karachi Stock Exchange (Guarantee) Limited, informally called the Karachi Stock Exchange(KSE) which is the most important Exchange of three stock exchanges in Pakistan and it is situated in Karachi, the largest city and commercial center of Pakistan.
Karachi Stock Exchange is acknowledged as the �Best Performing Stock Market of the World for the year 2002�. �Business Week�an international magazine declared KSE as one of the Best Performing Markets of theWorld for the last 4 years, likewise the US newspaper, USA Today, called The Karachi Stock Exchange as one of the best performing stock exchanges in the world.
There is a limited membership in the Karachi Stock Exchange. In the KSE, 200 individual and corporate organizations can list as members. In 2005, 162 members traded energetically on the Exchange.
Foreign corporate organizations may also apply for the membership of the KSE with the stipulation that the company�s nominee member is a citizen of Pakistan. The securities which are traded on KSE are Shares, bonds, Modaraba Certificates of listed companies, Unit trust schemes, mutual funds certificates, futures, indices.
History and Origin of the Karachi Stock Exchange
In 1947, the Karachi Stock Exchange was formed, which was the oldest exchange in Pakistan, and a few years later, it became a registered company limited. Since then it has practiced a remarkable development with listing of only 5 companies and 90 members in the 1950s and in 2006, the Exchange comprise 663 listed companies and 200 members.
From1990, corporate organizations turned into members on the Karachi Stock Exchange. In the start of 2006, 120 corporate members were registered in the Exchange.
From1997, the Karachi Stock Exchange had begun trading through the computerized trading system KATS (Karachi Automated Trading System).At present over 1000 KATS workstations are already set up which signifies that there was a demand for trading.
In 2002, the Karachi Stock Exchange was known internationally as one of the best performing stock markets in the world, by the magazine ‘Business Week’. In 2005, trading through the Internet was also started.
The Karachi Stock Exchange introduced KSE 100 Index in 1991 and KSE All Share Index in 1995 and at the end of the 20th century, it launched KSE 50 Index.
KSE started with a 50 shares index. On November 1, 1991 the KSE-100 was launched with a base of 1,000 points. In 2001, it raised to 1,770 and in 2005, it had attained 9,989, which attained a acme of 11,485 in March 2006. A capital weighted index is the KSE-100 which comprises of 100 companies representing 86 percent of market capitalization of the Exchange. The Karachi Stock Exchange introduced KSE All Share Index in 1995.
In 2002, the Karachi Stock Exchange was known internationally as one of the best performing stock markets in the world, by the magazine ‘Business Week’, likewise the US newspaper, USA Today, called The Karachi Stock Exchange as one of the best performing stock exchanges in the world. Since on 31 March, 2006, 663 companies were enrolled with the market capitalization of Rs. 3,257.062 billion (USD $ 54.28 billion) having listed capital of Rs. 486.489 billion (USD $ 8.11 billion). On 31 March, 2006,the KSE 100 Index closed at 11485.90.
Major Companies listed in Karachi Stock Exchange
Cap. Assets Leasing
Allied Bank Limited
Bank AI- Habib
Faysal Bank XD
National Bank of Pakistan
Pakistan Telecommunication Company
Oil and Gas Development Company
Hub Power Company
Pakistan Industrial Credit and Investment Corporation
Karachi Electric Supply Company
Engro Chemical Pakistan
Muslim Commercial Bank
Pakistan Naval Shipping Corporation
Karachi Stock Exchange (Guarantee) Limited
Stock Exchange Building,
Stock Exchange Road,
Karachi – 74000,
Telephone UAN: 111-00-11-22, 2425502-3