The Pakistan Stock Exchange (PSX) is the primary stock exchange of Pakistan, facilitating trading in equities, bonds, and other securities. The PSX Index, commonly referred to as the KSE-100 Index, is the benchmark index that tracks the performance of the top 100 companies listed on the exchange.
Key Features of the PSX Index (KSE-100)
- Benchmark Indicator
- The KSE-100 Index is the most widely followed stock market index in Pakistan, representing about 80% of the total market capitalization of the PSX.
- It includes companies from major sectors such as banking, energy, cement, textiles, and technology.
- Calculation Methodology
- The index is free-float market capitalization-weighted, meaning larger companies have a greater impact on its movement.
- It is reviewed quarterly to ensure it reflects the most significant and liquid stocks.
- Sectoral Composition
- Banking & Finance (HBL, UBL, MCB)
- Oil & Gas (OGDC, PPL, PSO)
- Cement (Lucky Cement, DG Khan Cement)
- Power & Utilities (HUBC, K-Electric)
- Technology & Telecom (PTCL, Systems Limited)
- Factors Influencing the PSX Index
- Economic Policies (Interest rates, inflation, fiscal policies)
- Political Stability (Government changes, regulatory environment)
- Foreign Investment (Inflows/outflows from foreign institutional investors)
- Global Markets & Commodity Prices (Oil prices, global economic trends)
- Corporate Earnings (Performance of major listed companies)
- Historical Performance
- The PSX has seen bullish and bearish cycles due to economic conditions.
- It reached an all-time high of over 53,000 points in 2017 but faced declines due to economic instability, COVID-19, and political uncertainty.
- Recently, it has been influenced by IMF agreements, exchange rate stability, and privatization policies.
- Comparison with Other Indices
- KSE-30 Index: Tracks the top 30 most liquid companies.
- KMI-30 Index: Tracks Shariah-compliant companies.
- PSX also has sector-specific indices (Banking, Oil & Gas, etc.).
Conclusion
The PSX KSE-100 Index serves as a barometer of Pakistan’s economy, reflecting investor sentiment and economic health. Its performance is closely watched by local and foreign investors, policymakers, and economists to gauge market trends. To view the KSE-100 Index in live, please click here.