KSE 100 Index
| Foundation | 1991 |
|---|---|
| Operator | Karachi Stock Exchange Limited |
| Constituents | 100 |
| Type | Large |
| Weighting method | Capital weighted index |
| Website | www |
Karachi Stock Exchange 100 Index (KSE-100 Index) is a acting as a benchmark to compare prices on the (PSX) over a period. In determining representative companies 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.
The index was launched in November 1991 with a base of 1,000 points. By February 2007, it had skyrocketed to 12,285 points.
KSE-100 index touched the highest ever benchmark of 14,814 points on December 26, 2007, a day before the assassination of former Prime Minister Benazir Bhutto, when the index nosedived.
The index recovered quickly in 2009 and 2010 reaching new highs. Basharullah said that you had to very careful about 2009 as it needs credible sources.
As at 7 November 2012 index recorded highest level of 16,218 points and now KSE is being considered as a best emerging market in Asia with returns in financial year 2011-2012 up to 40%-50%.
As of April the 30th KSE-100 Index recorded a new increase in its value standing at 28,913 points, that is more than 45.2% since the last fiscal year of 2012-2013.
By the month of June, KSE-100 was in positive conditions and it achieved 38,777 points on 17 June 2016.
In January 2017, the stock market hit the all-time high of 49,969 points. On 13 February, it stands at 49,876 points.
Following Britain's decision to leave EU on 24 June, KSE went down by 1,100 points (3.1 percent) as stock markets went in turmoil with investors now investing in safe havens like gold and government bonds.
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:
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.
The KSE 100 index reached its highest ever 50,887 points in Jan, 2017.
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