Growth
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 8, 2009, 652 companies were listed with the market capitalization of Rs. 2.561 trillion (US$ 30.5 Billion) having listed capital of Rs. 717.3 billion (US$ 12 billion). On December 26, 2007, the KSE-100 Index closed at 14,814.85 points.
Foreign buying interest had been very active on the KSE in 2006 and continued in 2007. According to estimates from the State Bank of Pakistan, foreign investment in capital markets total about US$523 Million. According to a research analyst in Pakistan, around 20pc of the total free float in KSE-30 Index is held by foreign participants.
Karachi stock exchange Board of Directors announced in 2007, their plans to construct a 40 story high rise KSE building, as a new direction for future investment.
The exchange began with the KSE-50 index. As the market grew a representative index was needed. On November 1, 1991 the KSE-100 was introduced and remains to this day the most generally accepted measure of the Exchange. KSE-100 index is used as a benchmark to compare prices overtime and companies with the highest market capitalization from each sector are selected and included in it to ensure full market representation.
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. By August 29, 1995 the KSE-All Share Index was constructed which became operative on September 18, 1995.
At present, the KSE has four market indices (KMI-30, KSE-30, KSE-100 and KSE-All Share Index).
Read more about this topic: Karachi Stock Exchange
Famous quotes containing the word growth:
“All growth is a leap in the dark, a spontaneous unpremeditated act without benefit of experience.”
—Henry Miller (1891–1980)
“Unlimited economic growth has the marvelous quality of stilling discontent while maintaining privilege, a fact that has not gone unnoticed among liberal economists.”
—Noam Chomsky (b. 1928)
“For the time of towns is tolled from the world by funereal chimes, but in nature the universal hours are counted by succeeding tribes of animals and plants, and by growth of joy on joy.”
—Ralph Waldo Emerson (1803–1882)