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Karachi stock exchange -100 index Vs BSE-30 index

Karachi Stock Exchange was merged with the other stock exchanges of the country to establish Pakistan Stock Exchange in January 2016.This was one of the bravest and vital decisions in the economic history of Pakistan. Karachi Stock Exchange was founded in 1947 and is one of the oldest stock markets in South Asia. The Karachi Stock Exchange 30 index possessed a base value of 10, 000 points and was first introduced in September 2006. It is significantly different from the Karachi Stock Exchange 100 index because it is not relevant to paid-up capital. It provides a very good alternate way of analyzing the Pakistan stock market for investors. Instead the Karachi Stock Exchange 30 index is all about the free float shares so it does not account for the total return on the market. The current level of Karachi Stock Exchange 30 index is at 22771 points.

Bombay Stock Exchange 30 index

Bombay stock exchange is one of the largest stock exchanges in the Asia. Investors use BSE-30 index to gauge the performance of this market.The Bombay Stock Exchange 30 index and works quite differently from the Karachi Stock Exchange 30 index and Karachi Stock Exchange 100 index is commonly known as SENSEX or BSE 30. It does not operate on conventional market capitalization rather the formula has been modified to suit the specific needs of the Indian economy and the Bombay Stock Exchange. The free float capitalization system it works on revolves around the thirty largest companies in the Bombay Stock Exchange and represents several types of industry.  In March 2016 , it crossed the 30,000 mark making that the biggest success till date.

Karachi Stock Exchange 100 index

The Karachi Stock Exchange 100 index has considerable variations from the other stock exchange markets in the region even within Pakistan. The Karachi Stock Exchange 100 index has a unique purpose, which relates to gauging the success of the Karachi Stock Exchange over a certain period of time. It is a capital weighted index unlike the Karachi Stock Exchange 30 index, which runs on the free float shares mechanism. Founded in 1991, the Karachi Stock Exchange 100 index has since proved instrumental to understanding the overall economy of Pakistan. It started out with just fifty companies but overtime it flourished and now includes hundred top companies, which contribute majorly to the county’s economical progress. These hundred companies, belonging to various business sectors, accounted for 90% of the market capitalization at the Karachi Stock Exchange. It lets stock holders keep a close eye on the fluctuations in rates and market trends. This helps develop better forecasts for the future of the Karachi Stock Exchange and aids in determining the current situation to make good investments and prevent poor investments. The current Karachi Stock Exchange 100 index rests at 39926 points, which is indicative of steady growth and good future prospects of the economy of Pakistan.

The Karachi Stock Exchange 100 index and Karachi Stock Exchange 30 index work in tandem to give a clear measure of the country’s present economic conditions, past performance and future possibilities. By offering more clarity to those interested in investing, they increase the chances of moving Pakistan’s economy in the right direction.

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About Emaad Qureshi