EQUITY MARKET

Stock Market in Pakistan

There are three stock exchanges in the country namely, the Karachi Stock Exchange, the Lahore Stock Exchange and the Islamabad Stock Exchange with the Karachi Stock Exchange being the largest.

 
Karachi Stock Exchange (KSE)

The Karachi Stock Exchange was incorporated on March 10, 1949 as a company limited by guarantee. Starting with 5 companies, today the Karachi Stock Exchange has 200 members and 652 listed companies and four indexes, the KSE-100 Index, the KSE – All share index the KSE-30 Index and the KMI-30 Index. The listed companies are divided amongst 35 sectors representing different segments of the economy.

KSE - 100 Index

The KSE-100 was launched in November 1991 and is the most widely accepted measure of the exchange. It’s a capital weighted index and consists of 100 companies selected on the basis of sector representation and highest market capitalization. The first 34 (excluding open end mutual funds) positions are filled by companies with the highest market capitalization in each sector and the remaining 66 positions is filled by companies with the highest market capitalization in descending order. The index is recomposed on a semi-annual basis.

KSE - All Share Index

The KSE All Share Index was introduced in the market on September 18, 1995. Like the KSE-100 Index, it’s a market capitalization index covering all scrips traded on the index.

KSE - 30 Index

The KSE-30 Index was introduced in September 2006. The index comprises of top 30 companies selected on the basis of free float market capitalization. The index is recomposed on a semi-annual basis.

KMI - 30 Index

The KSE and Al Meezan Investment Management Limited launched the KMI-30 (Karachi Meezan Index) Index in September 2008. Comprising of 30 Shariah complaint companies selected on the basis of free float, the KMI-30 is the first Islamic Index of the country.