The Pakistan Stock Exchange (PSX) (Urdu: پاکستان اسٹاک ایکسچینج), founded as Karachi Stock Exchange (KSE), is a stock exchange in Pakistan with trading floor on I. I. Chundrigar Road in Karachi.[4][5] PSX was classified by MSCI as a frontier market on 8 September 2021.[6]
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Company type | Stock exchange |
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PSX: PSX | |
Founded | 11 January 2016 (Originally Karachi Stock Exchange founded on 18 September 1947) |
Headquarters | Karachi-74000 , |
Key people | Shamshad Akhtar (Chairperson and Independent Director) Farrukh H. Khan (CEO and Managing Director) |
Owner | China Financial Futures Exchange (17%) Shanghai Stock Exchange (8%) Shenzhen Stock Exchange (5%) Pak China Investor Company (5%) Habib Bank Limited (5%) Local and Foreign Investors (60%)[1] |
Website | www dps |
Coordinates | 24°50′50.7″N 66°59′53.9″E / 24.847417°N 66.998306°E |
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Currency | Pakistani rupee (₨) (PKR) |
No. of listings | 523 (September 2023)[2] |
Market cap | Rs. 9.337 trillion (US$32 billion) (6 March 2024)[3] |
Volume | Rs. 16.591 billion (US$57 million) (6 March 2024)[3] |
Indices | KSE 100 Index KSE-30 Index KSE ALL Index KMI 30 Index KMI ALL Index |
The PSX was established on 11 January 2016 after the merger of the Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.[7][8][9] As of January 2022, there are about 375 companies listed on the PSX with a total market capitalisation of PKR 7,756 billion (US$27 billion).[10]
Investors on the exchanges include 1,886 foreign institutional investors and 883 domestic institutional investors along with about 220,000 retail investors. There are also about 400 brokerage houses which are members of the PSX as well as 21 asset management companies.[11][12] One of the PSX's constituent stock exchanges, the Karachi Stock Exchange, was listed among the world's best performing frontier stock markets: between 2009 and 2015 it delivered an average 26% return annually.[13] In December 2016, PSX sold 40% strategic shares to a Chinese consortium for US$85 million.[14]
History
edit1947–2016: Karachi Stock Exchange
editFounded on 18 September 1947, Karachi Stock Exchange Limited (KSE) was registered in Pakistan. It was located at the Stock Exchange Building (SEB) on Stock Exchange Road, in the heart of Karachi's business district off I. I. Chundrigar Road (then known as McLeod Rd).[15] It was Pakistan's largest stock exchange, and was listed among the ten best stock markets in the world in 2015. According to Bloomberg, the Pakistani benchmark stock market index is the third-best performer in the world since 2009.[16] In June 2015, Khaleej Times reported that since 2009, the Pakistani equities delivered 26 percent a year for US dollar investors, making Karachi the best-performing stock exchange in the world. As of 10 July 2015, total market capitalization reached Rs. 7.33 trillion (US$72 billion approximately).[17]
2016–present: Pakistan Stock Exchange
editThe Pakistan Stock Exchange (PSX) came into existence in January 2016 when the Government of Pakistan decided to merge the three large exchange markets of the country (based in Karachi, Lahore, and Islamabad) into one combined market.[18] The PSX was launched on 11 January 2016. Prior to the formal launch, the Karachi Stock Exchange held a two-day pre-production mock trading session for all certificate holders of the three exchanges. The integration is expected to help reduce market fragmentation and create a strong case for attracting strategic partnerships necessary for providing technological expertise and assistance. The integration of the three exchanges has completed the second phase of the Stock Exchanges Demutualization and Integration Act 2012, passed by a joint session of the Parliament.[19]
The Shanghai Stock Exchange became a major shareholder with a 40% stake in the PSX.[20]: 154–155 PSX is integrated with China's stock market through the China Connect Interface, allowing Chinese investors to more easily enter Pakistan's stock markets.[20]: 155
Trading volumes
editHistoric high trading volumes staggering at 2.20 billion shares were recorded on 27 May 2021. It broke the previous record all-time high volume of 1.56 billion shares, recorded on 26 May 2021.[21]
References
edit- ^ "Pakistan Stock Exchange Limited – | Psx | Exchange". www.psx.com.pk. Retrieved 26 November 2019.
- ^ Alam, Kazim (7 September 2023). "PSX chief hints at new wave of IPOs". DAWN.COM. Retrieved 17 March 2024.
- ^ a b "PSX ends on negative note". Business Recorder. 6 March 2024. Retrieved 17 March 2024.
- ^ "Pakistan Stock Exchange formally launched". Dawn. Pakistan. 11 January 2016. Retrieved 9 October 2022.
- ^ "Pakistan Stock Exchange formally launched | Pakistan Today". archive.pakistantoday.com.pk. 11 January 2016.
- ^ "MSCI Downgrades Pakistan to Frontier Market After Four Years". 7 September 2021 – via www.bloomberg.com.
- ^ "Ishaq Dar formally launches Pakistan Stock Exchange". www.thenews.com.pk. Retrieved 24 February 2022.
- ^ "PAKISTAN STOCK EXCHANGE STARTS FUNCTIONING - Channel 24". 11 January 2016. Retrieved 24 February 2022.
- ^ Akhtar, Adeel. "About Pakistan Stock Exchange (www.psx.com.pk)". www.ksestocks.com. Retrieved 16 June 2016.
- ^ "Pakistan Market Cap: PSX: All Shares | Economic Indicators | CEIC". www.ceicdata.com. Retrieved 24 February 2022.
- ^ "Pakistan Stock Exchange: a quantum leap for Pakistan's capital market". DailyTimes. Retrieved 22 February 2016.
- ^ "Stock exchange: Pakistan likely to win emerging market status". The Express Tribune. 10 June 2015. Retrieved 22 February 2016.
- ^ "KSE world's best performing frontier stock market: report". The Express Tribune. 3 June 2015. Retrieved 16 June 2016.
- ^ "PSX sells 40pc stake to Chinese consortium". DAWN.COM. 23 December 2016. Retrieved 24 December 2016.
- ^ Dawn.com (11 January 2016). "Pakistan Stock Exchange formally launched". DAWN.COM. Retrieved 24 February 2022.
- ^ "Pakistan central bank cuts benchmark rate to 42-year low". AFRWEEKEND. 24 May 2015. Archived from the original on 25 May 2015. Retrieved 24 May 2015.
- ^ "KSE world's best performing frontier stock market: report". The Express Tribune. 3 June 2015. Archived from the original on 11 June 2015. Retrieved 8 June 2015.
- ^ "Pakistan Stock Exchange formally launched". DAWN.COM. 11 January 2016.
- ^ Dawn.com (11 January 2016). "Pakistan Stock Exchange formally launched". www.dawn.com. Retrieved 22 February 2016.
- ^ a b Curtis, Simon; Klaus, Ian (2024). The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order. New Haven and London: Yale University Press. doi:10.2307/jj.11589102. ISBN 9780300266900. JSTOR jj.11589102.
- ^ Hussain, Dilawar (28 May 2021). "Low-priced stocks drive volumes to historic highs". DAWN.COM. Retrieved 30 May 2021. Umer