Karachi Stock ExchangeEssay Preview: Karachi Stock ExchangeReport this essayThe Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh, Pakistan. Founded in 1947, it is Pakistans largest and oldest stock exchange, with many Pakistani as well as overseas listings. Its current premises are situated on Stock Exchange Road, in the heart of Karachis Business District.
The KSE is the biggest and most liquid exchange in Pakistan and in 2002 it was declared as the “Best Performing Stock Market of the World” by “Business Week”. As of December 20, 2007, 671 companies were listed with the market capitalization of Rs. 4364.312 billion (US $ 73 Billion) having listed capital of Rs. 717.3 billion (US $ 12 billion). On December 26, 2007, the KSE 100 Index reached its ever highest value and closed at 14,814.85 points. KSE has been well into the 4th year of being one of the best performing markets of the world as declared by “Business Week”. Similarly USA Today termed Karachi Stock Exchange as one of the best performing bourses in the world. [1]
KSE was ranked with the highest overall volume of shares in the last year of BSE, as of October 29, 2007. [Source: KSE website]Pakistan is regarded as a huge market for all stakeholders with a population of over 15 lakhs in every country in the world. The market is expected to reach a peak in 2004 which is expected to further increase by 2014. With most of Pakistan’s investment concentrated in commodities such as energy, IT and agriculture, the market can be expected to grow with demand increasing as a result of increasing technology penetration, increasing the growth of financial services businesses and increasing the market share for medical, medical research, IT and other industries. The market is also expected to become more connected to all sectors with a growing number of Internet access providers (ISPs), health services and other providers to be involved in the market of this country. These are three sectors which can play a huge role in the growing market for this segment. This market is in a good position to become the new top emerging investment industry in the country. This market in Pakistan was not created in such a way as it is only the beginning and it will continue to expand at a much faster rate. Pakistan is one of the first countries in the world which has a strong track record in facilitating a long-term connected sector such as infrastructure development. This market has been very successful in attracting many innovative companies to India. Furthermore, Pakistan and India have developed a large variety of high value emerging technologies including artificial intelligence and quantum information technologies. This segment of the market is expected to thrive and increase in value by being both faster than China due to this fast adoption of digital information. Pakistan has a rich cultural cultural industry and is one of the best performing countries in the world in terms of literature, literature, fiction, poetry, drama, music, films, documentaries, television, video games and literature. This is an industry that has attracted many diverse and rich people as potential investors since the 1970s. [2]
Pakistan and India have a strong track record in facilitating a long-term connected sector such as infrastructure development. Pakistan is one of the first countries in the world which has a strong track record in facilitating a long-term connected sector such as infrastructure development. Pakistan holds the world record as the first to report a gross domestic product (GDP) of over US USD 20 billion. This is the largest foreign currency exchange in the world. Pakistan also holds the world record as the first country in the world to report 1 in 100,000 births as the birth rate of babies surpassed the rate of births in Sweden in 2009 for the first
Foreign buying interest had been very active on the KSE in 2006 and has continued in 2007 so far. According to estimates from the State Bank of Pakistan, foreign investment in capital markets total about $523 Million US. According to a research analyst in Pakistan, around 20pc of the total free float in KSE-30 Index is held by foreign participants.
KSE has seen some fluctuations since the start of 2007. One reason could be that it is the election year in Pakistan, and stocks are expected to remain dull. KSE has set an all time high of 12,400 points, before settling around the 11,000 mark. Result season in June and better payout expectations can drive the market to record level high again.
Karachi stock exchange Board of Directors has recently (2007) announced plans to construct a 40 story highrise KSE building , as a new direction for future investment.
In My ObservationPakistan being among the developing economies of the world has the benefit of holding the status of emerging markets i.e. The stock markets in Pakistan are classified as emerging stock markets. It is because of these wide range of advantages that many mutual funds and brokeage firm are offering investors an opportunity