Foundation | 1991 |
---|---|
Operator | Pakistan Stock Exchange Limited |
Exchanges | Pakistan Stock Exchange |
Constituents | 100 |
Type | Large |
Weighting method | Capitalization-weighted index |
Related indices | KSE-30 Index KMI 30 Index |
Website | www |
The KSE-100 Index is a stock index acting as a benchmark to compare prices on the Pakistan Stock Exchange (PSX) over a period.[1]
In determining representative companies to compute the index on, companies with the highest market capitalization are selected. However, to ensure full market representation, the company with the highest market capitalization from each sector is also included.[2]
History
1991-2006 (Steady growth)
The index was launched in November 1991 with a base of 1,000 points.[3]
In 2001, the Karachi Stock Exchange (KSE) became the highest-performing stock market globally, supported by macroeconomic policies that increased foreign exchange reserves above five billion dollars and strengthened the rupee. Daily trading volumes reached approximately 200 million shares. The market's positive trajectory was temporarily affected by military tensions following an attack on the Indian parliament. Intervention by U.S. Secretary of State Colin Powell and actions against militant groups by President Pervez Musharraf helped stabilize the situation. As a result, the KSE index rose by nearly 400 points, and the market capitalization reached 400 billion rupees.[4]
By February 2007, it had skyrocketed to 12,285 points.[5]
2007 (Record breaking growth)
KSE-100 index touched the highest ever benchmark of 14,814 points on December 26, 2007, a day before the assassination of former Prime Minister Benazir Bhutto, when the index nosedived.[6]
2008 Global crisis
- April 20: Karachi Stock Exchange achieved a major milestone when KSE-100 Index crossed the psychological level of 15,000 for the first time in its history and peaked 15,737.32 on 20 April 2008. Moreover, the increase of 7.4 per cent in 2008 made it the best performer among major emerging markets.[7][8]
- May 23: Record high inflation in the month of May, 2008 resulted in the unexpected increase in the interest rates by State Bank of Pakistan which eventually resulted in sharp fall in Karachi Stock Exchange.[9][10]
- July 17: Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices.[11][9]
- July 16: KSE-100 Index dropped one-third from an all-time high hit in April, 2008 as rising pressure on shaky Pakistan's coalition government to tackle Taliban militants exacerbates concern about the country's economic woes.[12]
- August 18: KSE 100 Index rose more than 4% after the announcement of the resignation of President Pervez Musharraf but Credit Suisse Group said that Pakistan's Post-Musharraf rally in Stock Exchange will be short-lived because of a rising fiscal deficit and runaway inflation.[13][9]
- August 28 : Karachi Stock Exchange set a floor for stock prices to halt a plunge that has wiped out $36.9 billion of market value since April.[9]
- December 15: Trading resumes after the removal of floor on stock prices that was set on August 28 to halt sharp falls.[9]
2009-2010 (Recovery started)
The recovery was started.
2011-2012 (Best emerging market)
As of 7 November 2012 the index recorded highest level of 16,218 points and now KSE is being considered as a best emerging market in Asia with returns in financial 2011-2012 up to 40%-50%.
2013-2014 (Post-Elections)
As of April 30, KSE-100 Index recorded a new increase in its value standing at 28,913 points, that is more than 45.2% since the last fiscal year of 2012–2013.[14]
2016 (Reaching new heights)
By the month of June, KSE-100 was in positive conditions and it achieved 38,777 points on 17 June 2016.[15]
2017 (All-time high)
In January 2017, the stock market hit the all-time high of 49,969 points. On 13 February, it stands at 49,876 points.[16]
Pakistan qualified for the popular MSCI Emerging Markets Index in May 2017, an upgrade from Morgan Stanley Capital International's (MSCI) Frontier Market (FM) index.[17]
On 25 May 2017, the KSE-100 index reached the all-time high of 53,124 points, later it tanked to 37,919 points in a matter of seven months.[18]
Following Britain's decision to leave EU on 24 June, KSE dropped 1,100 points (3.1 percent) as stock markets went in turmoil as investors sought safe havens like gold and government bonds.[19]
2020 (COVID-19)
The first case of COVID-19 in Pakistan was reported on 26 February 2020. Its impact resulted in the fall of around 62% of KSE-100 index, lowest at 27,200 on March 25, 2020, from the high of 43,218 points on January 13, 2020. Despite the fall greater than 2005 and 2008 crisis, The market remained calm and confident, and no investors have made accusations of market manipulations and unfair trading.[20]
2024
On 4 October 2024, the KSE-100 index gained 810.19 points, or 0.98 percent, during the session and closing at a record high of 83,531.96 points.[21][22]
Constituents
Current
- Abbott
- Adamjee Insurance
- AGP Limited
- Allied Bank
- Askari Bank
- Attock Petroleum
- Attock Refinery
- Avanceon
- Bank AL Habib
- Bank Alfalah
- Bank of Punjab
- BankIslami
- Bannu Woollen Mills
- Bestway Cement
- Century Paper
- Cherat Cement
- Cnergyico
- Colgate-Palmolive Pakistan
- Dawood Hercules
- DG Cement
- Dolmen City REIT
- EFU General Insurance
- Engro Corporation
- Engro Fertilizers
- Engro Polymer
- Fatima Fertilizer
- Fauji Cement
- Fauji Fertilizer Company
- Fauji Fertilizer Bin Qasim
- Faysal Bank
- First Habib Modarba
- FrieslandCampina Engro Pakistan
- Gadoon Textile Mills
- Ghani Glass
- GSK
- HBL
- HabibMetro
- Habib Sugar Mills
- HBL Growth Fund
- Highnoon
- Hubco
- Ibrahim Fibre
- Indus Motor Company
- Interloop Limited
- International Industries Limited
- International Steels Limited
- Javedan
- K-Electric
- Kohat Cement
- Kohinoor Textile
- Kot Addu Power
- Lotte Chemical
- Lucky Cement
- Lucky Core Industries
- Maple Leaf Cement
- Mari Petroleum
- MCB Bank
- Meezan Bank
- Millat Tractors
- Mughal Steel
- Murree Brewery
- National Bank
- National Foods
- National Refinery
- Nestlé Pakistan
- Nishat Chunian Power
- Nishat Chunian
- Nishat Power
- OGDC
- Packages Limited
- PEL
- Pak-Gulf Leasing
- Pakgen Power
- Pakistan Aluminium Beverage Cans
- PIBTL
- Pakistan Oilfields
- Pakistan Refinery
- Pakistan Petroleum
- Pakistan Services
- Pakistan State Oil
- Ptcl
- Pakistan Tobacco Company
- Pioneer Cement
- Punjab Oil Mills
- Rafhan Maize
- Saif Power
- Searle Pakistan
- Service
- Shell
- Shifa
- Standard Chartered
- SNGPL
- Systems Limited
- Tariq Glass
- Thal Limited
- TRG Pakistan
- Unilever Pakistan Foods
- United Bank
- Unity Foods
- Yousuf Weaving Mills
Former
- Adamjee Insurance[23]
- Archroma Pakistan[23]
- Air Link Communication[24]
- Aisha Steel[25]
- Atlas Honda[24]
- BankIslami Pakistan[26]
- Century Paper & Board Mills
- Dewan Textile Mills[23]
- Gadoon Textile Mills[26]
- Habib Sugar Mills[26]
- Hascol Petroleum[25]
- Hinopak Motors[23]
- Honda Atlas Cars[24]
- Jahangir Siddiqui & Co.[25]
- Jubilee Life Insurance[25]
- Kohinoor Textile Mills[26]
- Lotte Chemicals Pakistan[23]
- Pak Suzuki Motors[24]
- Saif Power[26]
- Shifa International Hospitals[26]
- Sui Southern Gas Company[25]
Annual performance
The following table shows the annual performance of the KSE 100 Index based on closing on 31 December each year, which was calculated back to 1990 when the index was launched.[27][28]
Year | Closing level | Change in Index in Points |
Change in Index in % |
---|---|---|---|
1991 | 1,640 | – | – |
1992 | 1,244 | −396 | −24.14 |
1993 | 2,164 | 920 | 73.95 |
1994 | 2,049 | −115 | −5.31 |
1995 | 1,498 | −551 | −26.89 |
2001 | 1,273.06 | −234.53 | −15.56 |
2002 | 2,701.42 | 1,428.36 | 112.20 |
2003 | 4,471.82 | 1,770.40 | 65.54 |
2004 | 6,218.46 | 1,746.64 | 39.06 |
2005 | 9,556.61 | 3,338.15 | 53.68 |
2006 | 10,040.50 | 483.89 | 5.06 |
2007 | 14,075.83 | 4,035.33 | 40.19 |
2008 | 5,865.01 | −8,210.82 | −58.33 |
2009 | 9,386.92 | 3,521.91 | 60.05 |
2010 | 12,022.46 | 2,635.54 | 28.08 |
2011 | 11,347.66 | −674.80 | −5.61 |
2012 | 16,905.33 | 5,557.67 | 48.98 |
2013 | 25,261.14 | 8,355.81 | 49.43 |
2014 | 32,131.28 | 6,870.14 | 27.20 |
2015 | 32,816.31 | 685.03 | 2.13 |
2016 | 47,806.97 | 14,990.66 | 45.68 |
2017 | 40,471.48 | −7,335.49 | −15.34 |
2018 | 37,066.67 | −3,404.81 | −8.41 |
2019 | 40,735.08 | 3,668.41 | 9.90 |
2020 | 43,755.38 | 3,020.30 | 7.41 |
2021 | 44,596.07 | 840.69 | 1.92 |
2022 | 40,420.45 | -4,175.62 | -9.36 |
2023 | 62,451.04 | 22,030.59 | 54.50 |
Market indices
KSE began with a 50 shares index. As the market grew, a representative index was needed. On November 1, 1991, the KSE-100 was introduced and remains to this date the most generally accepted measure of the Exchange. The KSE-100 is a capitalisation-weighted index and consists of 100 companies representing about 90 percent of market capitalisation of the Exchange.
In 1995, the need was felt for an all share index to reconfirm the KSE-100 and also to provide the basis of index trading in future. On August 29, 1995, the KSE all share index was constructed and introduced on September 18, 1995.
The KSE 100 index reached its highest ever 53,103 points in May 2017.
See also
References
- ^ "No, the stock market is not an accurate indicator of the economy". Profit by Pakistan Today. 22 August 2021.
- ^ Khan, Muhammad Raafay (January 9, 2023). "Understanding the benchmark KSE100 index". Profit by Pakistan Today.
- ^ https://www.psx.com.pk/psx/themes/psx/uploads/KSE_100_Index_New_Brochure.pdf [bare URL PDF]
- ^ "Bull Run".
- ^ KSE Index Monthly Report State Bank of Pakistan, February 2007
- ^ Record-breaking spree at KSE on better earnings’ expectations Daily Times, December 27, 2007
- ^ "Karachi Stock Exchange reaches record high - Gulf News". Archived from the original on 2008-08-29. Retrieved 2009-03-13.
- ^ Monster & Critics Archived 2012-03-07 at the Wayback Machine
- ^ a b c d e "Bloomberg Politics - Bloomberg". Bloomberg.com. 4 June 2023.
- ^ Hussain, Dilawar (May 24, 2008). "Billions wiped off on KSE's 'black Friday'". DAWN.COM.
- ^ "Protest over Pakistan share slump". July 17, 2008 – via news.bbc.co.uk.
- ^ "Forbes.com". Forbes.
- ^ "Pakistan shares up on resignation". August 18, 2008 – via news.bbc.co.uk.
- ^ "Economic Survey: KSE 100-Index up 45% in post-election rally". 2 June 2014.
- ^ "KSE-100 index catapult to its all time high to close at 38,777 index level". 17 June 2016.
- ^ "Pakistan Stock Exchange touches record high of 49,876 points". 23 January 2017.
- ^ Nauman, Qasim (16 June 2016). "Pakistan Stocks Get MSCI Boost". The Wall Street Journal. Retrieved 16 June 2016.
- ^ Hussain, Dilawar (2021-06-26). "MSCI may downgrade Pakistan to FM index". DAWN.COM. Retrieved 2021-06-27.
- ^ "Brexit to hit Pakistan textile sector the most". 24 June 2016.
- ^ Malik, Ahmed (2020-04-27). "PSX remains calm despite Covid-19 hits market worse than 2008 crisis". Business Recorder. Retrieved 2020-05-31.
- ^ "PSX hits record high as KSE-100 surpasses 83,000 points for first time". The Express Tribune. 4 October 2024.
- ^ Kashif, Muhammad (5 October 2024). "Stocks settle above 83,500 for first time". DAWN.
- ^ a b c d e "KSE-100 index recomposed". DAWN.COM. August 31, 2002.
- ^ a b c d Reporter, The Newspaper's Staff (September 20, 2023). "KSE-100 index re-composed". DAWN.COM.
- ^ a b c d e https://www.psx.com.pk/psx/themes/psx/uploads/Notice-KSE-100-Recomposition-31-Aug-21.pdf
- ^ a b c d e f Desk, News (September 14, 2024). "KSE100 Index recomposed, new firms to join from October 1". Profit by Pakistan Today.
{{cite web}}
:|last=
has generic name (help) - ^ "Corporate finance in Pakistan: case studies from an emerging market". [Karachi]: Oxford University Press; Lahore : Lahore University of Management Sciences. May 13, 1999 – via Internet Archive.
- ^ "KSE 100 Index (Pakistan) Yearly Stock Returns". www.1stock1.com. Retrieved 2024-02-08.