Assignment No.

1
Subject: Investment & Portfolio

Submitted To: Sir Rizwan Kamran

Submitted By: Badar Munir Roll No. 331 BBA 7th Eve 2009-13

Topic: Karachi Stock Exchange (KSE)

DEPAERTMANT OF BUSINESS ADMINISTRATION GC UNIVERSITY, FAISALABD

Stock Exchange
A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.

Role of stock exchanges:

Stock exchanges have multiple roles in the economy. This may include the following. 1. 2. 3. 4. 5. Raising capital for businesses Corporate governance Profit sharing Facilitating company growth Mobilizing savings for investment

Major stock exchanges:

Rank Stock Exchange Economy Headquarters Market Capitalization (USD Billions) 14,242 Trade Value (USD Billions) 20,161

NYSE Euronext

United States

New York City New York City Tokyo

NASDAQ OMX

United States

4,687

13,552

Tokyo Stock Exchange

Japan

3,325

3,972

Index
A stock market index is a bunch of stocks grouped together to measure a certain sector (utilities, banks, tech stocks, etc.) of the stock market. Portfolios of individual stocks or mutual funds are often compared to a stock market index to see how well they are performing.

Karachi Stock Exchange (KSE)

The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Pakistan. Founded in 1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings.

History:
Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared the Best Performing Stock Market of the World for the year 2002.As on May 30, 2008, 654 companies were listed with a market capitalization of Rs. 8.561 trillion (US$ 120.5 billion) having listed capital of 2805.873 billion (US$ 40.615 billion). Total market capitalization of the KSE reachedRs2.95 trillion (US$ 39.45 billion approximately) Karachi stock exchange Board of Directors announced in 2007. The exchange began with the KSE-50 index. On November 1, 1991 the KSE-100 was introduced and remains to this day the most generally accepted measure of the Exchange. KSE-100 index is used as a benchmark to compare prices overtime and companies with the highest market capitalization from each sector are selected and included in it to ensure full market representation.

BOARD OF DIRECTORS
Mr. Muneer Kamal (Chairman) Mr. Nadeem Naqvi (Managing Director) Mr. Abdul Majeed Adam (Director) Mr. Kamal Afsar (Director) Mr. Shazad G. Dada (Director) Mr. Abid Ali Habib (Director) Mr. Muhammad Yasin Lakhani (Director) Mr. Abdul Qadir Memon (Director) Mr. Asif Qadir (Director) Mr. Mohammed Sohail (Director) Syed Muhammad Shabbar Zaidi (Director)

Market Indices: 1. 2. 3. 4. 5. 6. 7.
KSE 100 KSE 30 All share KMI-30 OG TI BK TI KSE 100

KSE 100
On November 1, 1991 the KSE 100 Index was introduced. It is capital weighted index and consists of 100 companies representing about 86% of market capitalization of the Exchange. In November 1994 it was recomposed by the Baring Securities London and rules were framed for its re-composition. The KSE 100 Index re-composed on semi-annually basis.

Selection Criteria: List of Sectors

Number 1 2 3 4 5 6 7 8 9 10

Company Name OGDCL Fauji fertilizer company MCB bank Pakistan petroleum Pakistan oilfields Hub power company Unilever Engro chemical United bank

Weightage (%) Market Capitalization (PKR Millions) 13.32 9.00 7.80 6.79 5.10 4.45 3.05 2.73 2.65 119,838 80,973 70,160 61,045 45,894 40,026 27,476 24,531 23,875 20,741

National bank of Pakistan 2.31

KSE 30
Introduced in 2006 Based on the Free Float Methodology includes only the top 30 most liquid companies listed on the KSE.

ALL SHARE
Consists of all the companies listed on the KSE.

KMI-30
Tracks the 30 most liquid Shariah-compliant companies listed at KSE. Introduced in September 2008, KMI comprises of 30 Companies that qualify the KMI Shariah screening criteria and are weighted by float adjusted market capitalization. 12% cap on weights of individual securities. Rebalanced biannually. Shariah Supervisory Board of Meezan Bank chaired by eminent Shariah scholar Justice (Retd.) Mufti Muhammad Taqi Usmani.