Pakistan Stock Exchange Limited (PSX):

Formerly: Karachi Stock Exchange Limited (KSE).

Brief History:

Pakistan Stock Exchange Limited (PSX) (formerly: Karachi Stock Exchange (Guarantee) Limited (KSE) was established on September 18, 1947. It was incorporated on March 10, 1949. Only five companies were initially listed with a total paid-up capital of 37 million rupees. The first index introduced in KSE was based on fifty companies and was called KSE 50 index. Trading used to be carried out on open out-cry system. Computerized trading system called Karachi Automated Trading System (KATS) was introduced in 2002 with a capacity of 1.0 million trades per day and the ability to provide connectivity to an unlimited number of users.

In October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan, a second stock exchange was established in Lahore in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore. The LSE was the first stock exchange in Pakistan to use the internet.

Yet another stock exchange known as Islamabad Stock Exchange was established in Islamabad, the capital city of Pakistan on October 25, 1989 with the main object of setting up of a trading and settlement infrastructure, information system, skilled resources, accessibility and a fair and orderly market place that ranks with the best in the world and to cater to the needs of less developed areas of the northern part of Pakistan. It was licensed as a stock exchange on January 7, 1992.

All these three exchanges had separate management, trading interfaces, indexes, listing criteria etc and thus had no mutual links to each other. All three exchanges were previously operating as a non-profit organizations with mutualized structure wherein there respective members had trading as well as ownership rights. This structure inherently created conflict of interest and perceived to jeopardize the investors' interest. Therefore, the Stock Exchanges (Corporatization, Demutualization & Integration) Act, 2012 (known as "Demutualization Act") was promulgated by the Government. As a result these three exchanges were merged together to form a new combined exchange called Pakistan Stock Exchange Limited (PSX) which started its operations on January 11, 2016 under this new title.

As provided under the aforesaid Demutualization Act, now Members have ceased to be Members of PSX and they have been issued Trading Right Entitlement Certificates ("TRECs") and PSX's ownership shares, thus separating trading rights from ownership rights. Whereas TRECs represent trading rights, PSX shares represent ownership. Now, TREC holders need not be a shareholder of PSX nor a PSX shareholder is required to be TREC holder of PSX.

As envisaged under the provisions of the Demutualization Act, regulatory functions have been segregated from commercial functions of PSX, so that regulatory functions are not compromised for achievement of commercial objective of generating revenue. Moreover, under the provisions of the said Act, after demutualization, persons representing TREC holders on the PSX Board shall not be in majority and the Act also envisages divestment of shares of TREC holders held in their blocked accounts to strategic investors and general public/financial institutions within a certain time limit.

Karachi branch of Pakistan Stock Exchange is located on Stock Exchange Road, in the heart of business district of Karachi. The premises is known as Stock Exchange Building.

Listing in PSX:

As on June 24th, 2024 there are 544 companies listed in PSX and the total market capitalization is Rs. 6,226.621 billions. The listing is done on the basis of strict rules and regulations laid out by Securities Exchange Commission of Pakistan (SECP) & the management of Pakistan Stock Exchange Limited. All the listed companies are categorized in various main business sectors. As on June 24th, 2024 there are total 37 sectors listed on Pakistan Stock Exchange which contribute towards the market capitalization and all the listed companies (excluding their future contracts) are divided among these. Rest of the noncontributory sectors are allocated for indexes, futures, bonds etc.

For a complete list of sectors, click here
For a complete list of listed companies, click here

Market Indexes:

Detailed information about these indexes can be obtained from PSX's web site

  • KSE 100 Index:

    The KSE-100 Index was introduced in November 1991 with base value of 1,000 points. The Index comprises of 100 companies selected on the basis of sector representation and highest free-float capitalization, which captures over 80% of the total free-float capitalization of the companies listed on the Exchange. 37 companies are selected i.e. one company from each sector on the basis of the largest free-float capitalization and the remaining 63 companies are selected on the basis of largest free-float capitalization in descending order. This is a total return index i.e. dividend, bonus and rights are adjusted. It is revised after every six months for inclusion or exclusion of companies on the basis of above mentioned criteria.

    Free Float:

    Free-Float is the proportion of total paid-up shares issued by a company that are readily available for trading at a Stock Exchange. It implies that the shares held by controlling directors, sponsors, promoters, government and other locked-in shares which are not available for trading in the normal course are excluded.

    During 2012, the governing board of directors of the Pakistan Stock Exchange (formarly: Karachi Stock Exchange) decided to implement the KSE-100 Index on the basis of free-float market capitalization instead of total market capitalization. The Rules for composition and recomposition of the Index based on free-float methodology have remained un-changed other than selection of companies on the basis of free-float market capitalization as against total market capitalization.

  • KSE ALL Index:

    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. By August 29, 1995 the KSE-All Share Index was constructed which became operative on September 18, 1995.

    KSE-All Index is calculated using total market capitalization method.

  • KSE 30 Index:

    In June 2005, another benchmark index named KSE-30 was introduced with a base value of 10,000 index points to provide investors with a sense of how large companies' scrips of the Pakistan’s equity market are performing over a period of time. Thus, the KSE-30 Index is designed in such a way that it becomes comparable over a period of time similar to other indicators that track various sectors of country’s economic activity such as the gross national product, consumer price index etc.

    KSE-30 Index is calculated using the free-float capitalization methodology.

  • KMI 30 Index:

    Introduced in Spetember 2008, the objective of KSE-Meezan Index (KMI) is to serve as a gauge for measuring the performance of Shariah compliant equity investments. Besides tracking performance of Shariah compliant equities, its construction will increase investor trust and enhance their participation.

    KSE-Meezan Index is also calculated using the “Free-Float Capitalization”.

    For a list of current Shariah compliant companies and their selection criteria please visit Al-Meezan Investment Management Limited link pointer


    Introduced on November 18, 2015 as a joint effort by the management of Pakistan Stock Exchange (PSX) and Meezan Islamic Bank Limited.

    The principal objective of the All Shares Islamic Index is to gauge the performance of the Shariah compliant segment of the equity market. Accordingly, it is important that all those shares which meet the Shariah screening criteria should be included in the All Shares Islamic Index in order to ensure completeness of the index and adherence to the core objective of the proposed All Shares Islamic Index.

    The companies included in this index are selected on the basis of a six factors selection criteria. First criteria is that the core business of the company must be permissable in Islamic Shariah and also on ethical grounds. Other five factors determine the financial compliance of the companies. After selection, these companies pass through another six stage filter to exclude defaulter, non-operational companies along with all Mutual Fund companies.

    Base value for this index has been set at 15,000 points. Review and Re-composition will be carried out bi-annually.

    You can get download a complete brochure and current list of companies included in this index from the official web site of Pakistan Stock Exchange.

Disclaimer: is not the official website of Pakistan Stock Exchange. For PSX official website please visit
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