The KSE-100 was launched in November 1991 and is the most widely accepted measure of the Exchange. KSE-100 was initially a capital-weighted index consisting of 100 companies selected on the basis of sector representation and highest market capitalization. The first 34 positions (excluding open-end mutual funds) were filled by companies with highest market capitalization in each sector and the remaining 66 positions filled by companies with highest market capitalization in descending order. Effective October 15, 2012, computation of the KSE-100 index was changed to a free float market capitalization basis. The Index is recomposed on a semi-annual basis.
The KSE-All Share Index was introduced on September 18, 1995. Like the KSE-100 Index, it is a market capitalization index covering all shares traded in the market.
The Pakistan Stock Exchange and Al-Meezan Investment Management Limited launched the KMI-30 Index in September 2008 to represent the Islamic sector performance. Comprising of 30 Shariah complaint companies selected on the basis of free float, the KMI-30 is the first Islamic index of the country. This index is recomposed bi-annually.
The Pakistan Stock Exchange and Al-Meezan Investment Management Limited launched the KMI-30 Index in September 2008 to represent the Islamic sector performance. Comprising of 30 Shariah complaint companies selected on the basis of free float, the KMI-30 is the first Islamic index of the country. This index is recomposed bi-annually.
Trading at the Pakistan Stock Exchange is conducted over the Karachi Automated Trading System (KATS) – an online order-matching system introduced in 1997. KATS links all members of the exchange through workstations ensuring transparency, anonymity and efficient execution of orders. Regulations governing the operations of KATS can be viewed at www.psx.com.pk.
Incorporated as a public limited company in 1993, Central Depository Company of Pakistan Limited (CDC) is the only depository in Pakistan. The Company started operations in September 1997. CDC is the sole entity handling the electronic (paperless) settlement of transactions carried out at all three stock exchanges of the country. Through efficient functioning of CDC, approximately 99% of the market settlement is in book entry form. Launched in 1999, Investor Account Services (IAS) allows retail investors to open and maintain securities’ accounts directly with CDC. Additional information on CDC is available on www.cdcpakistan.com.
Non-resident investors are allowed to trade freely in the shares quoted on the stock exchanges in Pakistan. For this purpose, non-residents are required to open Special Convertible Rupee Account (SCRA) with any bank in Pakistan. Such accounts can be fed by remittances from abroad or by transfer from a foreign currency account maintained by the non-resident investor in Pakistan. The balance available therein can be used for the purchase of any share quoted on the stock exchange. Payment for such purchases may be debited to the account on production of stock broker’s memo showing sale of shares to the account holder and disinvestments proceeds may be credited provided evidence of the sale price in the shape of stock broker’s memo is produced. Funds available in such special accounts can be transferred outside Pakistan or credited to a foreign currency account maintained in Pakistan at any time without prior approval of the State Bank. These accounts can also be credited with dividend income. Transfers from one such account to another may also be made in case of transfer of shares between the two account-holders. For more information on SCRA, visit the website of State Bank of Pakistan www.sbp.org.pk.
