What is Sector & how many sectors are in Pakistan Stock Market
Stock Market consists of different sectors and there are many listed companies within these sectors. There are total 36 sectors in Pakistan Stock Exchange and around 500 listed companies in these sectors. It means you have hundreds of choices to invest your money in PSX. In order to invest wisely in the stock market you need to understand the sectors and about the companies within these sectors. All the listed companies are divided in the sectors i.e. Honda, Suzuki and Toyota make automobiles/cars in Pakistan so these companies are in the “Automobile Assembler” sector. Similarly DG Cement, Pioneer Cement, Fauji Cement and Lucky Cement are all listed companies with cement production factories so they are in sector “Cement” in Pakistan Stock Exchange.
Best Sector in Pakistan Stock Market
Here comes question from every new investor that which sector is best for investment in PSX. Unfortunately even the most experienced stock market players cannot answer this question with precision. The reason is simple, different sectors perform differently according to economic conditions and other factors. For example, when there is huge demand of cars in country, automobile sector become best performing sector but when there is no demand of cars in country, automobile sector will be worst perfuming sector.
So you need to learn which sector is performing well in particular time when you decided to invest in the stock market. No doubt there are some sectors and some companies which perform consistently well and some companies are also known as “blue chip” companies because of their profit earning history, size and reputation. We will discuss these companies and sectors in our future posts.
Largest sectors in Pakistan Stock Exchange (Market Capitalization)
Market Capitalization means total rupee market value of a sector’s outstanding shares of stock. It is also known as Market Cap and it is calculated by multiplying total number of sector’s share by current market price. In simple words, it means how much total money a particular sector or company has in the stock market.
In Pakistan Stock Exchange, followings are the largest sectors according to total Market Capitalization;
- Commercial Banks
- Oil & Gas Exploring Companies
- Tobacco
- Food & Personal Care Products
- Fertilizers
- Cement
- Chemical
- Power Generation & Distribution
- Pharmaceuticals
- Textile Composite
- Automobile Assembler
- Insurance
- Oil & Gas Marketing Companies
It is important to note that these above mentioned ranking of largest sectors is on a particular date i.e. 29 March 2020. These rankings can change with the change of share price of companies within sector but the above mentioned sectors are the ones with highest amount of market capitalization over past few years in Pakistan Stock Market.
List of all Sectors in Pakistan Stock Exchange
Following is the list of total sectors of Pakistan Stock Exchange.
AUTOMOBILE ASSEMBLER | AUTOMOBILE PARTS & ACCESSORIES |
CABLE & ELECTRICAL GOODS | CEMENT |
CHEMICAL | CLOSE – END MUTUAL FUND |
COMMERCIAL BANKS | ENGINEERING |
EXCHANGE TRADED FUNDS | FERTILIZER |
FOOD & PERSONAL CARE PRODUCTS | GLASS & CERAMICS |
INSURANCE | INV. BANKS / INV. COS. / SECURITIES COS. |
JUTE | LEASING COMPANIES |
LEATHER & TANNERIES | MISCELLANEOUS |
MODARABAS | OIL & GAS EXPLORATION COMPANIES |
OIL & GAS MARKETING COMPANIES | PAPER & BOARD |
PHARMACEUTICALS | POWER GENERATION & DISTRIBUTION |
REAL ESTATE INVESTMENT TRUST | REFINERY |
SUGAR & ALLIED INDUSTRIES | SYNTHETIC & RAYON |
TECHNOLOGY & COMMUNICATION | TEXTILE COMPOSITE |
TEXTILE SPINNING | TEXTILE WEAVING |
TOBACCO | TRANSPORT |
VANASPATI & ALLIED INDUSTRIES | WOOLLEN |
Iqrar Khan says
Thanks! This is my first time on visiting PSX information. Great information keep it up.