The Pakistan Stock Exchange ( ur, , abbreviated as PSX) is a stock exchange in

Pakistan Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...

with trading floors in

Karachi Karachi (; ur, ; ; ) is the most populous city in Pakistan and 12th most populous city in the world, with a population of over 20 million. It is situated at the southern tip of the country along the Arabian Sea coast. It is the former c ...

Islamabad Islamabad (; ur, , ) is the capital city of Pakistan. It is the country's ninth-most populous city, with a population of over 1.2 million people, and is federally administered by the Pakistani government as part of the Islamabad Capital ...

and

Lahore Lahore ( ; pnb, ; ur, ) is the second List of cities in Pakistan by population, most populous city in Pakistan after Karachi and 26th List of largest cities, most populous city in the world, with a population of over 13 million. It is th ...

. PSX was classified by MSCI as a frontier market on 8 September 2021. The PSX was established on 11 January 2016 after the merger of the Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange. As of January 2022, there are about 375 companies listed on the PSX with a total

market capitalisation Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

of PKR 7,756 billion (US$52 billion). Investors on the exchanges include 1,886

foreign institutional investors An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-link ...

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. 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. In December 2016, PSX sold 40% strategic shares to a Chinese consortium for US$85 million.

History

The Pakistan Stock Exchange (PSX) came into existence in January 2016 when the

Government of Pakistan The Government of Pakistan ( ur, , translit=hakúmat-e pákistán) abbreviated as GoP, is a federal government established by the Constitution of Pakistan as a constituted governing authority of the four provinces, two autonomous territorie ...

decided to merge the three large exchange markets of the country (based in Karachi, Lahore, and Islamabad) into one combined market.

Karachi Stock Exchange

Founded on 18 September 1947, Karachi Stock Exchange Limited (KSE) was registered in

. It was located at the Stock Exchange Building (SEB) on Stock Exchange Road, in the heart of

's business district near

I. I. Chundrigar Road I. I. Chundrigar Road ( ur, ), previously known as McLeod Road, is a road located in central business district of Karachi, Pakistan, and is named after former Pakistani Prime Minister Ibrahim Ismail Chundrigar. The road serves as the spine o ...

. It was Pakistan's largest stock exchange, and was listed among the ten best stock markets in the world in 2015. According to ''Bloomberg'', the Pakistani benchmark

stock market index In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of th ...

is the third-best performer in the world since 2009. 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).

Lahore Stock Exchange

Lahore Stock Exchange (LSE) was located in

. The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the

in response to the needs of the provincial

metropolis A metropolis () is a large city or conurbation which is a significant economic, political, and cultural center for a country or region, and an important hub for regional or international connections, commerce, and communications. A big c ...

of the province of

Punjab Punjab (; Punjabi Language, Punjabi: پنجاب ; ਪੰਜਾਬ ; ; also Romanization, romanised as ''Panjāb'' or ''Panj-Āb'') is a geopolitical, cultural, and historical region in South Asia, specifically in the northern part of the I ...

. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of

Islamabad Stock Exchange

Islamabad Stock Exchange (ISE) was the youngest of the three stock exchanges of Pakistan, and was located in the capital city,

. 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 , 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 In modern politics, and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: representing the electorate, making laws, and overseeing the government via hearings and inquiries. Th ...

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. Umer

References

External links

Official website

Data portal

PSX Detailed Company Financial
{{authority control Economy of Pakistan Stock exchanges in Pakistan Companies listed on the Pakistan Stock Exchange 2016 establishments in Pakistan Financial services companies established in 2016 2016 mergers and acquisitions Formerly government-owned companies of Pakistan Pakistani subsidiaries of foreign companies