The Pakistan Stock Exchange (PSX) is a stock exchange in Pakistan with trading floors in Karachi, Islamabad, and Lahore. It was classified as a frontier market by MSCI on 8 September 2021. Listed on the NASDAQ and NYSE, PSX offers stocks of a wide range of companies and industries.
KSE-30 Index
KSE-30 is a composite index of 30 companies, which are all listed on the Pakistan Stock Exchange. The index comprises companies from different sectors. The companies listed on KSE-30 range from banks to cement firms. It also contains companies from the fixed income sector, such as government debt instruments and corporate debt instruments.
KSE-30 Index consists of 30 of the largest companies in Pakistan by market capitalization. It represents 85% of the total market capitalization on the PSX. The KSE-100 is broken down into three different indexes: the KSE-100 index contains the top 100 companies, the KSE-30 index comprises the top 30 companies, and the Balanced Portfolio includes both capital and income.
The KSE-30 Index is unique among indexes in that it only includes the 30 largest companies on the PSX. This makes it different from other indexes, which track the entire market’s total return. Moreover, the KSE-30 index is revised twice a year.
You can also invest in PSX shares through exchange-traded funds (ETFs). Some of the leading ETFs for emerging markets have exposure to PSX securities. While the PSX is dominated by Pakistani firms, there is an international presence for local companies. With over five hundred listed companies, the index has a market cap of $50 billion.
Karachi Stock Exchange
The Karachi Stock Exchange Limited is a stock exchange in Pakistan. It operates trading floors in Karachi, Islamabad, and Lahore. It was classified as a frontier market by MSCI on 8 September 2021. Its main objective is to help Pakistani investors buy and sell stocks at an affordable price.
The index is designed to reflect the performance of the Pakistani equity market. The KSE-100 Index is a composite index that consists of 100 companies. It captures over 80% of the country’s free-float capitalization. The companies are ranked by free-float capitalization, with the top 37 companies having the highest free-float capitalization. This index is re-evaluated every six months.
The Pakistan Stock Exchange was established on September 18, 1947. A year later, it was renamed as the Karachi Stock Exchange (Guarantee) Limited and launched its first index, the KSE-50. Initially, trading was conducted on an open out-cry system, with prices quoted in rupees. In 2002, the Karachi Automated Trading System was introduced. It has the capacity to process up to 1.0 million trades per day and can connect an unlimited number of users.
The Pakistan Stock Exchange Limited operates a digitized market, where investors can buy and sell common stocks of listed companies. Additionally, it offers exchange-traded funds, equity options, and financial futures. Investors may also purchase shariah-compliant shares. In addition to trading stocks, investors can also buy and sell government papers, bonds, and loans.
Karachi Stock Exchange Limited is located in Karachi, Pakistan. The trading session runs from 09:32am to 03:30pm PST on weekdays, and from 03:30pm to 04:31pm on Fridays. On weekends and holidays, the exchange is closed. However, holidays are declared in advance by the exchange.
Lahore Stock Exchange
The Pakistan Stock Exchange, or PSE, is a stock exchange in Pakistan, with trading floors in Karachi, Islamabad, and Lahore. It was designated as a frontier market by MSCI on 8 September 2021. Today, it is one of the largest stock exchanges in Asia, with over $1 trillion in market capitalization.
In 1970, a second stock exchange was established in Lahore, Pakistan, under the Securities and Exchange Ordinance. This was established to serve the needs of investors in the province and northern areas. It initially had 83 members and operated from rented office space in Bank Square. It was the first stock exchange in the country to use the Internet for its operations.
The Lahore Stock Exchange, Pakistan Stock exchange Limited, is home to one of the largest equities broking firms in Pakistan. Foundation Securities (Pvt) Limited was founded in January 2005, and is a corporate member of the Pakistan Stock Exchange. In 2005, it was the first partnership between industry professionals and the Fauji Foundation, a nonprofit organization that currently has assets of over 3.9 billion US dollars.
The PSX has come a long way from its beginnings, when the market consisted of only five companies with a combined paid-up capital of Rs 37 million. In 1960, the number of listed companies had grown to 81 with a total market capitalization of Rs 1.8 billion. Today, the PSX hosts over 531 companies, which are distributed across 36 industry groups and sectors.
PSX has recently simplified the process of opening a share trading account. With the help of internet technology, potential investors can now open a Sahulat Account without having to provide a source of income. In addition, Abbasi and Company Private Limited has introduced a digital account opening option.
Islamabad Stock Exchange
Islamabad Stock Exchange Limited (ISE) is the national stock exchange of Pakistan. It facilitates and regulates trading of shares. The general public can invest in shares of the companies that are listed on the exchange by opening a trading account with a registered broker. Compared to traditional avenues of investment, shares investments offer better returns.
The ISX started operating on October 25, 1989 in the capital city of Islamabad. Its objective was to create a trading, settlement, and information system. It also aimed to develop a skilled resource pool and make the stock market accessible. Today, the ISX ranks among the top stock exchanges in the world.
Initially, ISE had planned to build a high-rise building to house its stock exchange business. The design of the building also had to meet the requirements for natural disasters like earthquakes and floods. The ISE tower is a 22-storey building with a floor space of 52,269.9 square meters.
In addition to its trading and settlement facilities, NCCPL also offers a web-based UIN Information System. This system allows UIN Holders to monitor their accounts and their trading history. Furthermore, they can view relevant information such as market information, trading activity, and settlement details. The NCCPL also issues a UIN Identification Number (UIN) for each account holder.
The National Clearing Company of Pakistan Limited (NCCP) is the centralized clearing and settlement facility of the PSX. In addition to providing a centralized trading platform, NCCP is responsible for settling trades, executing transactions, and reducing risk.
KSE-100 Index
The KSE-100 Index is a benchmark used by the Pakistan Stock Exchange to measure stock prices. The index is based on a hundred stocks in the country and is a great way to compare prices of different stocks. It has been around for over a century and has remained remarkably stable.
The KSE-100 index includes the largest companies on the PSX, based on market capitalization. These companies represent 85% of the total market capitalization. The index is calculated using the Free Float Market Capitalization methodolog. Its objective is to reflect the performance of the top 50 percent of free float KSE-100 stocks and the top 12 companies with the highest average traded value.
Companies included in this index have to pass a six-stage filter to be included in the index. These include: financial compliance with Islamic Shariah; ethical practices; and a company’s core business. The index will be reviewed every two years. In addition, the Pakistan Stock Exchange will keep an updated list of companies that are included in the index.
The KSE-100 Index of Pakistan Stock Exchange is a free float index that tracks the largest companies in the country. The index reaches its highest point on 7 November 2012, when it hit a record 16,218 points. In recent years, the KSE has become one of the most successful emerging markets in Asia. Its returns in 2011 and 2012 were as high as 40-50%.
The Pakistan Stock Exchange uses the Asia/Karachi time zone. It does not observe Daylight Saving Time. The currency traded on the KSE is Pakistani Rupees. Its headquarters is in Karachi, Pakistan.
