The joke that is the KSE
KSE share free-float at around 20 per cent
KARACHI, May 14: The Karachi Stock Exchange (KSE) share free float is estimated to be approximately 22 per cent based on top 27 stocks that are on the futures counter. Based on value of those shares, the free float also comes to around 20 per cent, which means that although the market capitalization of KSE is $35 billion, the free-float capitalization is just about $7 billion.
Old hands among the stock broker fraternity and capital market experts have always held a firm view that free-float of the Pakistan’s bourses is very small, ranging between 10 to 15 per cent. That in turn has fuelled argument on whether the KSE-100 index should be based on market capitalization or free-float of stocks.
A stock broker said that the current KSE-100 index-—though constructed in an extremely transparent and orderly manner—-does not, however, depict the overall market conditions on any particular day. Let all the stocks rise and OGDC and PTCL drop by Rs5 on any particular trading day and the index would end up in the red and vice versa.
TSE has been calculating and publishing TOPIX since July 1969. The Bombay Stock Exchange (BSE) Sensex Index was converted into a free-float index from September 2003.
KARACHI, May 14: The Karachi Stock Exchange (KSE) share free float is estimated to be approximately 22 per cent based on top 27 stocks that are on the futures counter. Based on value of those shares, the free float also comes to around 20 per cent, which means that although the market capitalization of KSE is $35 billion, the free-float capitalization is just about $7 billion.
Old hands among the stock broker fraternity and capital market experts have always held a firm view that free-float of the Pakistan’s bourses is very small, ranging between 10 to 15 per cent. That in turn has fuelled argument on whether the KSE-100 index should be based on market capitalization or free-float of stocks.
A stock broker said that the current KSE-100 index-—though constructed in an extremely transparent and orderly manner—-does not, however, depict the overall market conditions on any particular day. Let all the stocks rise and OGDC and PTCL drop by Rs5 on any particular trading day and the index would end up in the red and vice versa.
TSE has been calculating and publishing TOPIX since July 1969. The Bombay Stock Exchange (BSE) Sensex Index was converted into a free-float index from September 2003.
posted by India News Watch at 7:47 AM
<< Home