Pakistan Stock Exchange (PSX)

You are on page 1of 13

PRESENTED BY: NAQASH JAVED

PAKISTAN STOCK EXCHANGE (PSX):


ABOUT US:
The Pakistan Stock Exchange (abbreviated as PSX) is a stock exchange in Pakistan with trading floors
in Karachi, Islamabad and Lahore. PSX was reclassified as a MSCI Emerging Market in May 2017, while
the FTSE classifies PSX as a Secondary Emerging Market.

The PSX was established on 11 January 2016 after the merger of the Karachi, Lahore and Islamabad stock
exchanges. PSX's origins were laid with the establishment of the Karachi Stock Exchange in 1947, the Lahore Stock
Exchange in 1970 and the Islamabad Stock Exchange in 1992. As of 26 July 2020 there were about 540 companies
listed in PSX and the total market capitalization was ₨7.07031 trillion (US$43 billion).
PAKISTAN STOCK EXCHANGE (PSX):
VISION:  
To be a leading financial institution, offering efficient, fair and transparent securities market in the region and enjoying
full confidence of investors and listed securities issuers.

MISSION:
 To strive to provide quality and value-added services to the capital market in an efficient, transparent and orderly
manner, compatible with international standards and best practices.
 To provide state-of-the-art technology and automated trading operations, driven by a team of professionals in
accordance with good corporate governance.
 To protect and safeguard the interests of all its stakeholders, i.e. members, listed companies, employees and the
investors at large. 
 To reflect the country’s economic health and behavior and play its role for the growth, development and prosperity of
Pakistan.
PAKISTAN STOCK EXCHANGE (PSX):
STOCK EXCHANGE COMPANIES IN PAKISTAN:-
There are three Stock Exchange Companies in Pakistan are as follow:-
1. Karachi Stock Exchange (KSE)
2. Islamabad Stock Exchange (ISE)
3. Lahore Stock Exchange (LSE)

 KARACHI STOCK EXCHANGE (KSE):-


Founded on 18 September 1947, Karachi Stock Exchange Limited (KSE) was registered in Pakistan. The Karachi
Stock Exchange Limited (KSE), was a stock exchange located at the Stock Exchange Building (SEB) on Stock
Exchange Road, in the heart of Karachi's Business District, I. I. Chundrigar Road, Karachi, Sindh Province of Pakistan.
It was Pakistan's largest, and one of the oldest stock exchanges in South Asia. Karachi Stock Exchange was also listed
among 10 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 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).
PAKISTAN STOCK EXCHANGE (PSX):
 ISLAMABAD STOCK EXCHANGE (ISE):-
Islamabad Stock Exchange or ISE was the youngest of the three stock exchanges of Pakistan and is located in the
capital of Pakistan. Islamabad stock exchange (ISE) was incorporated as a guarantee-limited company on 25 October
1989 in Islamabad. ISE tower is a 22-storey building, which makes it the second highest building of Islamabad after
the Telecom Tower. Area covered by the building is 562,629 Sq ft (52,269.9 m2), it consists of three levels of
basements and ground plus 18 floors above.

 LAHORE STOCK EXCHANGE (LSE):-


Lahore Stock Exchange is located in Lahore, Pakistan. It was amalgamated into the national Pakistan Stock
Exchange on 11 January 2016. The Lahore Stock Exchange (Guarantee) Limited came into existence in October
1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan 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.
PAKISTAN STOCK EXCHANGE (PSX):
ROLE OF PSX:
Stock exchanges have multiple roles in the economy such as:-
Raising capital for businesses.
Mobilizing savings for investment.
Facilitating company growth.
Profit sharing.
Opportunities for small investors.
PAKISTAN STOCK EXCHANGE (PSX):
FUNCTIONS OF PSX:
PAKISTAN STOCK EXCHANGE (PSX):
MAIN ACTIVITIES:
 To promote the savings and pave the way for the investment.
 To provide the liquidity for the investors.

IN FAVOUR OF COMPANIES:
AS ORGANIZATION:  It supplies them with the obtaining of long term funds that
 To guarantee the legal and economic securities. permits the company to make profitable activities.
 To provide official information.  The securities quoted in the stock exchange market have more
 To fix the prices of the securities. fiscal purpose advantages for the company.
 It offers to the company’s free publicity.

IN FAVOUR OF INVESTORS:
 It permits him the access to the profitable activities of the big companies.
 It offers liquidity to the security investments.
PAKISTAN STOCK EXCHANGE (PSX):
TRADING PROCEDURE IN STOCK EXCHANGE:
In order to purchase or sell securities on stock exchange the following steps have to be taken:

1. SELECTION OF BROKER:
A broker is a member of stock exchange and securities can only be purchased and sold through him.

2. PLACING THE ORDER: 


There are three parties involved in the dealing of shares:
 The stock Broker 
 The client
 The jobber
 The stock broker simply acts as agent and contacts the particular jobber in the stock exchange on behalf of the
client
PAKISTAN STOCK EXCHANGE (PSX):

TRADING PROCEDURE IN STOCK EXCHANGE:


3. PREPARING THE CONTRACT NOTE: 
The stock broker prepares the contact note that contains the following information:
 Name and the address of the stock broker. 
 The name and address of the jobber. 
 The type and price of the share. 
 The commission of the broker.
 The date of transaction.

4. SETTLEMENT:
 In case of ready delivery contract, the buyer pays the money and the seller delivers the securities one same day.
 In the case of forward delivery contract settlement are done in a week or once in a month.
PAKISTAN STOCK EXCHANGE (PSX):
DATA SERVICES:
TV channels also display PSX ticker through live feeds from PSX system.
Investors provided customized data packages for trading and assessment of their portfolio on a real time basis.
PSX website offers data of market on real time basis, including listed company profiles, snap shot of financials,
press releases and summary of market activities on real time basis.

You might also like