Is KSE 100 index Manipulated?

KSE 100 index in May 2017 53127, look at the Index today in Oct 2023 51520 and individual stocks are performing 3 folds down as of Year 2017. It looks like the index is being manipulated.

Comparing the performance of the KSE-100 index in 2017 to stock prices in 2023 and observing a significant difference between the two does not necessarily indicate manipulation of the index itself. While it may appear concerning that the index has remained relatively stable while individual stock prices have declined, there are legitimate reasons for such disparities:

1. Sector Differences: The KSE-100 index is a broad-based index that represents the performance of 100 of the largest companies on the Pakistan Stock Exchange. It's possible that specific sectors or industries within the index have performed significantly worse than others, causing the overall index to remain relatively stable.
2. Composition Changes: The composition of the KSE-100 index can change over time as companies' market capitalization or performance fluctuates. New companies can replace underperforming ones, which can affect the index's overall performance.
3. Market Capitalization Differences: The index is often market-capitalization-weighted, meaning that larger companies have a more significant influence on its value. If smaller companies have underperformed while larger ones have remained stable, this could lead to the observed discrepancy.
4. Valuation Changes: Even though the index value might be similar, individual stocks may have experienced changes in their valuation due to factors such as earnings, financial health, and investor sentiment.
5. Market Sentiment: Individual stocks can be influenced by changes in investor sentiment, while the overall index may not respond to the same extent.

While disparities between the KSE-100 index and individual stock performance can be a cause for concern, it doesn't necessarily prove index manipulation. To determine whether manipulation is occurring, you would need to investigate specific instances of wrongdoing or manipulation of the index by market participants.

If you suspect manipulation, it's essential to report your concerns to the relevant regulatory authorities, such as the Securities and Exchange Commission of Pakistan (SECP), and provide any evidence or information you may have that supports your claim. They have the authority and expertise to investigate and take appropriate action if manipulation is found to be occurring.