KSE 100 Index
Karachi Stock Exchange 100 Index (KSE-100 Index) is a stock index acting as a benchmark to compare prices on the Karachi Stock Exchange (KSE) over a period. In determining representative compaines 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.
1991-2006 (Steady growth)
The index was launched in November 1991 with a base of 1,000 points. By 2007, it had skyrocketed to 12,285 in February 2007.
2007 (Record breaking growth)
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.
- 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.
- July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices.
- 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.
- 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.
- 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.
- December 15: Trading resumes after the removal of floor on stock prices that was set on August 28 to halt sharp falls.
2009-2010 (Quick recovery)
The index recovered quickly in 2009 and 2010 reaching new highs.
2011-2012 (Best emerging market)
As at 7 November 2012 index recorded highest level of 16,218 points and is now KSE is being considered as a best emerging market in Asia with returns in financial year 2011-2012 up to 40 to 50%.
2013 Record breaking performance
By 15 June 2013, KSE 100 index hit unbelievable record of 23,097 points and a return of 70% with in six months. This is mainly led by free and fair elections in the country and a clear majority government in the country. Now KSE is being considered as best performing market of the world in last three years.
Still it is being considered under valued by 30 to 40 percent in comparison with regional markets. Hence Growth is strongly predicted due to Budgeted Corporate tax rates on the decline from 35% to 30% and resolvasion of circular debt effecting Power Sector.
Top 10 KSE 100 Index companies
The following is a list of the ten companies with the highest market capitalization volume and their respective weightages in the index. The companies account for over 74% of the KSE index, as of 9 July 2013:
|Number||Company Name||Weight (%)||Market Capitalization
|1||Oil and Gas Development Company||16.21||147,193|
|2||MCB Bank Limited||11.64||105,729|
|3||Fauji Fertilizer Company Limited||8.86||80,490|
|6||Hub Power Company||6.16||55,987|
|9||Pakistan State Oil||4.14||37,644|
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 capital weighted index and consists of 100 companies representing about 90 percent of market capitalization 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.
- 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
- Monster & Critics
- Pakistan Stocks Slump, Led by Banks, After Unexpected Rate Rise - Bloomberg
- Billions wiped off on KSE’s ‘black Friday’ - Dawn.com
- Protest over Pakistan share slump - BBC News
- Pakistani Investors Stone Exchange as Stocks Plunge - Bloomberg
- Pakistan shares up on resignation - BBC News
- Pakistan's Post-Musharraf Rally Will Falter, Credit Suisse Says - Bloomberg
- Pakistan Stock Index Is Little Changed; Trading Limits Remain Bloomberg
- Pakistan’s Stock Index Falls to 2-Year Low After Lifting Curbs - Bloomberg
- "KSE 100 Index". Karachi Stock Exchange. Retrieved 9 July 2013.