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 cap ...

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 T ...

and

Lahore Lahore ( ; pnb, ; ur, ) is the second most populous city in Pakistan after Karachi and 26th most populous city in the world, with a population of over 13 million. It is the capital of the province of Punjab where it is the largest city ...

. PSX was classified by

MSCI MSCI Inc. is an American finance company headquartered in New York City. MSCI is a global provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, ESG and climate products. It operates the MSCI World, MSCI ...

as a

frontier market A frontier market is a term for a type of developing country's market economy which is more developed than a least developed country's, but too small, risky, or illiquid to be generally classified as an emerging market economy. The term is an econ ...

on 8 September 2021. The PSX was established on 11 January 2016 after the merger of the

Karachi Stock Exchange The Karachi Stock Exchange ( ur, or PSX-KSE) was a stock exchange located in Karachi, Pakistan. Since 1947, it has been located at the Stock Exchange Building on I. I. Chundrigar Road. It has now been consolidated in the Pakistan Stock Exchang ...

Lahore Stock Exchange The Lahore Stock Exchange was a financial facility located in Lahore, Pakistan. It was incorporated as a company Limited by Guarantee under the Companies Act 1913 on 5 October 1970. In the first General meeting of the Board of Directors held on ...

and

Islamabad Stock Exchange The Islamabad Stock Exchange ( ur, or PSX-ISE) was a stock exchange located in Islamabad, Capital Territory, Pakistan. In 2016, it merged with the Pakistan Stock Exchange. History Islamabad Stock Exchange (ISE) was incorporated as a guara ...

. As of January 2022, there are about 375 companies

listed Listed may refer to: * Listed, Bornholm, a fishing village on the Danish island of Bornholm * Listed (MMM program), a television show on MuchMoreMusic * Endangered species in biology * Listed building, in architecture, designation of a historicall ...

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 t ...

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

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 of ...

. 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 is the third-best performer in the world since 2009. In June 2015,

Khaleej Times ''Khaleej Times'' is a daily English language newspaper published in Dubai, United Arab Emirates. Launched on 16 April 1978, ''Khaleej Times'' is the UAE's longest-running English daily newspaper. History and profile A partnership between the U ...

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

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

. 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 Tower The ISE Tower is one of the highrises located at 55, Jinnah Avenue of the Blue Area business district of Islamabad. Companies headquarters Islamabad Stock Exchange Towers is a twin 22 storey towers. *Air China Pakistan office *Etihad Airlines P ...

s, 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 A joint session or joint convention is, most broadly, when two normally separate decision-making groups meet, often in a special session or other extraordinary meeting, for a specific purpose. Most often it refers to when both houses of a bicamer ...

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