Karachi Stock Exchange – KSE

Karachi Stock Exchange (KSE) is the biggest exchange of Pakistan and is the second oldest stock exchange in the whole of South Asia. It has many national and international listings and is the most liquid exchange in Pakistan.

The Karachi Stock Exchange is located in the heart of Karachi’s renowned business area, the I. I. Chundrigar road. And, its present premises are situated on the stock exchange road, Karachi. KSE was established on September 18, 1947 and has since then been the premier stock exchange of Pakistan.  Moreover, in 2002 the Karachi Stock Exchange was acknowledged as ‘the best performing stock market of the world’ by Business Week. Another credential of KSE is that USA Today, the United States renowned newspaper, declared Karachi Stock Exchange as one of the best performing bourses in the world.

Ever since its advent, the KSE has had an unhindered and overt objective of serving its potential clients. It strives to provide a quality service to the capital market in the most transparent and organized manner. It has endeavored to become reliable and compatible with the international standards. KSE’s another goal has been to provide high-tech and contemporary machinery for its clients and giving them the amenity of being driven by a well qualified and skilled work force. Moreover, it does well to guard the interests and ventures of all of its stakeholders; be they the listed companies, the employees, the members or the investors. KSE reflects the economic standing of the country and plays a vital part in its prosperity and development.

Karachi Stock Exchange is one the most well equipped exchanges of the world. KSE’s got an Electronic trading system which is a rather convenient method of trading. Also, Karachi Stock Exchange is affiliated to and is a member of the world Federation of Exchanges (WFE). It has partnerships with Microsoft, Oracle and Unisys for I.T. infrastructure. The KSE is one of the leading tax payers of Pakistan and in the fiscal year 2006-07 gave over Rs. 4 billion towards the national exchequer.

Karachi Stock Exchange was initiated with an index of 50 shares. However, as the market grew its index was changed to a more representative base of 100.  This KSE-100 was introduced on 1 November, 1991 and has remained consistent since then.

Stocks of the public limited companies (PLC’s) are bought and sold in the stocks exchanges. The Karachi Stock Exchange is an example of such stock market where stocks of various listed companies can be traded.

The existence of an Exchange makes this buying and selling of stocks easy. You can simple go to a stock exchange or even call up a broker who works there and ask them to buy or sell on your behalf. One can base their dealings on the activity level of the company and become a smart or, to use a jargon become a, “rational” stakeholder. A stock’s price fluctuates depending on reports from the company, media reports, economic news and a variety of other aspects.
KSE Live Rates – How They Work
KSE live rates have a significant impact on Pakistan’s economy. The Karachi Stock Exchange being one of the most viable stock market of the world attracts a lot of domestic and foreign investment. KSE live rates are relied upon by most masses due to various reasons. A few reasons are listed below that contribute to the confidence of stakeholders in the KSE live rates.

• Pakistan has strong economic fundamentals
• Stable Rupee/Dollar parity increase the significance of KSE live rates
• Expansionary monetary policy of the country

Myriad factors contribute to the KSE live rates trend. Also, the fact that the Karachi Stock Exchange has been giving fairly high returns to its investors gives encouragement to the potential investors who are seeking maximum returns for their investments.

The present KSE live rates paint a favorable present market scenario and rather lucrative returns on investments can be expected. Also, the KSE live rates give evidence of economic viability in investing in the Karachi Stock Exchange.

Economic Conditions and KSE Live Rates

Live KSE rates will continue to have a positive impact on the market and contribute to its flourishing as the Divestment policy of the government of Pakistan (GOP) by public offer of state owned enterprises’ shares, also known as “Privatization for people”, have kept investors interests in the capital/equity market of Pakistan alive. Hence, the KSE live rates represent a true and fair picture of the economic condition of the country.

KSE sprang to life in 1947 with only five listed companies with an initial paid up capital of Rs. 37 million. However, today KSE comprises of no less than 655 listed companies with an initial paid up capital of Rs. 654,171.07 million! Despite the hindrance in its prosperity in the late 1990’s with all the sanctions imposed (after the nuclear testing programs), the political instability and the country’s frozen Forex accounts which resulted in investor’s impassiveness, the bourse managed to do a considerable business and was still on its feet. Moreover, the deprived conditions in which the stock exchange worked initially which included the poor administration of Corporate Law Authority, minimal automation of services, unfortunate reporting standards, tight monetary policy and high borrowing cost weighed down the market as a whole and hampered its progress back then. Even though, KSE still managed to pull itself out of these hurdles and thrived still.

KSE live rates- KSE 100 index live rates

When investing in stocks, there is no such concept as a ‘sure thing’ or a moment when can pompously cite; “Duh! That was to happen inevitably”. One can make forecasts and can speculate though and rely on the trends of KSE live rates. There are some investing tricks too, that can be followed and there are certain formulae that advanced studies have taught us to apply. Even the ‘big fishes’ of the stock market rely upon these ratios and formulae to make or break the market situations. There are several market indices used in the KSE.  As we saw earlier the KSE 100 index is used and other than that we have KSE ALL Index which is used to reconfirm the KSE-100 Index live rates, KSE 30 Index which is to be the benchmark by which the stock price performance can be compared over a period of time and the KMI 30 Index (KSE-Meezan Index).

Few top companies with KSE-100 Index are:

• OGDCL
• MCB Bank
• National Bank of Pakistan
• Pakistan Petroleum
• Standard Chartered Bank
• PTCL

The highest ever closing for KSE live rates were pulled off at 15,676.34 points on 18 April, 2008.