JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
LAHORE STOCK EXCHANGE
Aftab Ahmad
CEO/Managing Director
Our economy has shown strong capacity
to overcome challenges originated from
both internal and external economic
environment.
ECONOMIC OVERVIEW
The macroeconomic landscape of the country
was badly affected by devastating floods
in July 2010, which directly affected about
20 million people, mostly by destruction of
property, livelihood and infrastructure; thereby
inflicted significant damage to the fragile
economy. ADB approved a US$ 650 million
loan to Pakistan which was used to rebuild
the damaged infrastructure. Shortage of
power and gas, escalating utilities costs, high
borrowing cost exacerbated the situation for
Large Scale Manufacturing as well as Service
sectors. The fiscal position remained weak with
poor revenue generation whilst expenditure
escalated. Real GDP growth in the outgoing
year was recorded at 2.4% as compared to
3.8% in the previous Fiscal Year. Nevertheless,
our economy has shown strong capacity to
overcome challenges originated from both
internal and external economic environment
while struggling towards achieving long term
sustainable growth.
PERFORMANCE OF THE MARKET
The market started in the FY 2010-11 with
some positive note as LSE-25 Index starting
from 3092.70 points. The market and the Index
reached the lowest level of 2970.86 points of
the period under review and closed at 3051.12
points at the close of the financial year. Local
investors remained jittery while seeking clarity
on the modalities of Capital Gain Tax (CGT).
Investment in capital market during the period
July-March 2010-11 by the foreign investors
depicted a net inflow of US$ 301.5 million.
Corporate profitability increased in year 2011
but profitability concentrated in few large
companies in the Energy, Telecom and Banking
sectors.
During the period under review, seven Open
end Funds were listed. Further, two companies,
one TFC and one Participation Term Certificate
were in the pipeline of listings. Two Closed end
Funds were converted into Open End Funds.
Twelve securities were delisted out of which
three companies merged with other companies,
seven companies went into Winding Up by
Court Orders, one Open end Fund matured and
fully redeemed and one Company was de-listed
after the buy-back the shares by the sponsors.
Total companies listed at LSE were 496 as
compared to 510 companies in the previous
year. The total listed capital increased from
Rs. 842.596 billion (US$ 9.362 billion) to Rs.
888.190 billion (US$ 9.868 billion) as on June
30, 2011. Similarly, the aggregate market
capitalization increased from Rs. 2,622.928
billion (US$ 29.143 billion) to Rs. 3,166.044
billion (US$ 35.178 billion) as on June 30,
2011. The volumes of the Exchange shrunk
considerably i.e. by 66%. During the period
under review, total share volume of regular
market reduced to 1,124.762 million shares as
compared to previous FY figure of 3,362.668
million shares.
Complementing the efforts of members and
listed companies in seeking to find better
levels of optimum operational efficiency, LSE
continued to identify areas of improvement
as part of the Exchange’s present and future
development.
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