Karachi Stock Exchange
Karachi Stock Exchange is Pakistan’s largest and most volatile stock exchange. KSE was established on September 18, 1947 started with 5 firms by the paid up capital of Rs 37 Million and currently turn out to be a main stock exchange of Pakistan. KSE has several Pakistani and overseas listings. In 2002 KSE stock exchange was stated as the “Best Performing Stock Market of the World” in Business Week and USA Today.
KSE’s aim is to become a core financial institution, providing resourceful, fair, and clear securities market within the region. KSE stands with all others advance stock exchange markets and with electronic trading system. Because the market grew a delegate index was necessary. On November 1, 1991 the KSE-100 was introduced and remains to the current date the foremost typically accepted gauge of the Exchange. The KSE-100 is a capital weighted index and consists of 100 corporations representing concerning 86 % of market capitalization of the Exchange. The KSE-100 index recorded ever close at 15,767 points, was in April 2008. The fall from this level to 4500 was really the most horrible crisis that ever strikes the Pakistani stock markets. A large proportion of individuals believe in unseen components concerned within the events that cause the crisis.
Corporate profit maintain to roar further, rising by a dominant 24 % on annual basis and 6 % on quarterly basis within the third quarter of fiscal year 2012. Energy companies cement and banks were the main contributors. The Manufacturing sector’s overall profits fall by 33 % on yearly basis, largely owing to a decline of 63 % within the profitability of the fertilizer manufacturers. Textile profitability declined by 60 % and chemical sectors profitability too declined by 68 %. Cement sector profitability grew by 367 %, Services sector by 26 %, and Auto sectors by 118 % on yearly basis.
President Zardari had signed an ordinance (known as capital gains tax ordinance) that the supply of any investment in stocks wouldn’t be questioned, if it remained invested for 120 days, from 24 April to 30 June 2014. According to analyst the immediate impact of the notice is yet to come. Few days ago the result of the notice was clearly seen.
Political din has encouraged various notches and is predicted to stay elevated as opponent parties vigorously looking for resignation from Prime Minister Gillani.