Pakistan Stock Exchange

The Pakistan Stock Exchange (Urdu: بازارِ حِصَص پاکستان, abbreviated as PSX) is a stock exchange in Pakistan with trading floors in Karachi, Islamabad and Lahore.[4][5] PSX was classified by MSCI as a frontier market on 8 September 2021.[6]

Pakistan Stock Exchange Limited
بازارِ حِصَص پاکستان
TypeStock exchange PSX: PSX
LocationKarachi, Pakistan
Coordinates24°50′50.7″N 66°59′53.9″E
Founded11 January 2016 (2016-01-11)
(Originally Karachi Stock Exchange founded on 18 September 1947)
OwnerChina 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]
Key peopleShamshad Akhtar (Chairperson and Independent Director)
Farrukh H. Khan (CEO and Managing Director)
CurrencyPakistani rupee (₨) (PKR)
No. of listings379 (24 February 2022)
Market capRs. 6.3 trillion (US$22 billion) (28 Dec 2022)[2]
VolumeRs. 4.228 billion (US$15 million) (10 December 2021)[3]
IndicesKSE 100 Index
KSE-30 Index
KSE ALL Index
KMI 30 Index
KMI ALL Index
Websitewww.psx.com.pk
dps.psx.com.pk

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

The 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.[15]

Karachi Stock Exchange
UK's Foreign Secretary William Hague rings the closing bell at the Karachi Stock Exchange on 24 June 2010

Founded 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 near I. I. Chundrigar Road.[16] It was Pakistan's largest stock exchange, and was listed among the ten best stock markets in the world in 2015.[17][18] According to Bloomberg, the Pakistani benchmark stock market index is the third-best performer in the world since 2009.[19] 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).[20][21]

Lahore Stock Exchange

Lahore Stock Exchange (LSE) was located in Lahore, Pakistan. The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore.

Islamabad Stock Exchange
Islamabad Stock Exchange Tower is now one of the regional offices of PSX

Islamabad Stock Exchange (ISE) was the youngest of the three stock exchanges of Pakistan, and was located in the capital city, Islamabad. ISE was incorporated as a guarantee-limited company on 25 October 1989. It was located in the ISE Towers, a 22-storey building which is one of the tallest buildings of the city. The area covered by the building is 562,629 sq ft (52,269.9 m2), and it consists of three levels of basements and ground plus 18 floors above.

Merger

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.[22]

Trading volumes

Historic 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.[23]

References
  1. "Pakistan Stock Exchange Limited – | Psx | Exchange". www.psx.com.pk. Retrieved 26 November 2019.
  2. "Traders mark 2022 as 'bad year' for Pakistan stock market, fears haunt investors for 2023". Arab News PK. 29 December 2022. Retrieved 24 August 2023.
  3. "Pakistan Market Cap: PSX: All Shares | Economic Indicators | CEIC". www.ceicdata.com.
  4. "Pakistan Stock Exchange formally launched". Dawn. Pakistan. 11 January 2016. Retrieved 9 October 2022.
  5. "Pakistan Stock Exchange formally launched | Pakistan Today". archive.pakistantoday.com.pk.
  6. "MSCI Downgrades Pakistan to Frontier Market After Four Years".
  7. "Ishaq Dar formally launches Pakistan Stock Exchange". www.thenews.com.pk. Retrieved 24 February 2022.
  8. "PAKISTAN STOCK EXCHANGE STARTS FUNCTIONING - Channel 24". 11 January 2016. Retrieved 24 February 2022.
  9. Akhtar, Adeel. "About Pakistan Stock Exchange (www.psx.com.pk)". www.ksestocks.com. Retrieved 16 June 2016.
  10. "Pakistan Market Cap: PSX: All Shares | Economic Indicators | CEIC". www.ceicdata.com. Retrieved 24 February 2022.
  11. "Pakistan Stock Exchange: a quantum leap for Pakistan's capital market". DailyTimes. Retrieved 22 February 2016.
  12. "Stock exchange: Pakistan likely to win emerging market status". The Express Tribune. 10 June 2015. Retrieved 22 February 2016.
  13. "KSE world's best performing frontier stock market: report". The Express Tribune. 3 June 2015. Retrieved 16 June 2016.
  14. "PSX sells 40pc stake to Chinese consortium". DAWN.COM. 23 December 2016. Retrieved 24 December 2016.
  15. "Pakistan Stock Exchange formally launched". DAWN.COM. 11 January 2016.
  16. Dawn.com (11 January 2016). "Pakistan Stock Exchange formally launched". DAWN.COM. Retrieved 24 February 2022.
  17. Houreld, Katharine (10 April 2013). "Insight: Pakistan's booming market no black and white matter". Yahoo News. Retrieved 10 April 2013.
  18. Times, Khaleej (29 October 2015). "Karachi Stock Exchange among 10 best stock markets in the world in 2015". Scene on Hai. Retrieved 9 October 2015.
  19. "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.
  20. "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.
  21. "Pak equities to extend bull run on strong fundamentals". Khaleej Times. 1 June 2015. Archived from the original on 1 June 2015. Retrieved 8 June 2015.
  22. Dawn.com (11 January 2016). "Pakistan Stock Exchange formally launched". www.dawn.com. Retrieved 22 February 2016.
  23. Hussain, Dilawar (28 May 2021). "Low-priced stocks drive volumes to historic highs". DAWN.COM. Retrieved 30 May 2021. Umer
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