Download - FEAS

More documents

Recommendations

Info

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 LAHORE STOCK EXCHANGE Aftab Ahmad CEO/Managing Director Total Market Capitalization increased by 28.29% and stood at $30 Billion against total Market Capitalization of $24 billion in 2009. After a dismal growth performance last year, Pakistan’s real GDP was able to post a moderate growth rate of 4.1% in the FY 2009-10 against previous year’s 1.2%. This year the growth was fueled by impressive growths in the industry sector which grew by 4.9% against a negative growth rate of 1.9% last year. Services sector, which over the years has become the largest sector of the economy (53% of the total GDP), also contributed with a growth rate of 4.6% (FY09: 1.6%). The Agriculture sector grew by 2.0%. The year started with the government resorting to IMF’s Aid Program to help it control its economic crisis. Currency depreciation took the total debt to around Rs. 8 trillion (around 95 billion US Dollars), equivalent to 56% of GDP, and 379% of total budgeted revenue for the year. While the power crisis continued to plague all sectors of the economy the government’s effort to introduce Rental Power Plants as a temporary relief measure also faced a backlash. No privatization of State Owned Entities was undertaken nor any mega infrastructure project completed. Although the environment was tough, still the government took steps to revive the slowing down economy. The State Bank of Pakistan, which in the previous year kept a tight monetary policy stance to check inflation started to loosen up its monetary policy and brought down the discount rate to 12.50% (reduction of 150 bps). The SBP also made efforts to inject liquidity into the starved banking system to encourage lending. The Federal Board of Revenue faced hardships in collection of taxes during the year and managed to collect Rs. 1,472 billion marginally short of its target but depicting a growth of 18.75% over the previous year. Consumer Price Index (CPI) averaged at 11.7% showing a substantial fall from the FY09 CPI’s average of 20.8% however, missing the 9.0 target set for the year. Current account deficit narrowed to 5-year low owing to improvement in the trade balance (Exports increased by 8.9% and Imports fell by a 12.0%) and steadily growing remittances. Due to above factors the Country saw an improvement in its ratings from international agencies such as S&P and Moody’s International. The resolution of the National Finance Commission (NFC) Award is a major step forward on the path to provincial autonomy but, allocating more resources to the provinces will put more strain on Federal Government’s budgetary requirements set for the FY 2010-11. With international donors and aid agencies forcing the Government to end the subsidies, bringing more sectors under the tax net and introduction of LGST, the next year also appears to be a rough ride especially the legacy issues such as the political uncertainty and difficult security and law & order situation still lurking making the government unstable. Performance of the Market During the period under review, the market witnessed a general trend of growth in almost all relative benchmarks such as the index, the market capitalization, traded volumes and the increase in the new issues to the market, as opposed to the last year. During the financial year 2010, twenty four (24) new securities were listed at LSE of which five (5) were new companies, fourteen (14) were Open- Ended Funds, one Term Finance Certificate, one Non-Voting Ordinary share and three were bonds issue. It is pertinent to note here that the listing of three National Savings Bonds of different maturities reflect the government’s intention to tap diverse funding sources and it is expected that we will see more Government securities being listed on the Exchange. The total issue size of companies’ listings was Rs.34.1 billion, bonds size was Rs. 3.6 billion and non-voting shares was Rs. 79 million this year. During the year, six (6) securities were delisted out of which four (4) companies were merged with other companies listed at Exchange and two (2) open ended funds were matured and fully redeemed. Total issues listed on the LSE were 510 as compared to 511 issues in the previous year. LSE-25 index, the benchmark index for the Exchange registered an increase of 45% to close at 3,091.01 against last year’s decline of 45% closing at 2,130.68. Total Market Capitalization increased by 28.29% and stood at Rs. 2.62 trillion ($30 Billion) against total Market Capitalization of Rs. 2.04 trillion ($24 billion) in 2009. During the 251 trading days in the FY 2010, securities worth Rs. 113 billion ($1.3 billion) (FY09: Rs. 101 billion ($1.19 billion) were traded in 1.814 million (FY09: 1.779 million) trades executed through the Exchange. A total of 3.137 billion (FY09: 2.715 billion) shares were traded during these transactions. Although the average daily turnover of the ready board shares for the year was at 13.45 million shares per day as against 11.10 million shares during 2009 however, in percentage terms the share of LSE in the overall trading activity in Pakistan has been declining. HISTORY AND DEVELOPMENT Lahore Stock Exchange, established in October 1970, is a fast emerging market in the country. Currently, it is considered as second largest stock exchange with a market share of around 12-15% in terms of daily traded volumes, however, the way it is catching up on the back of enormous economic growth in the provincial capital the outlook of Lahore Stock Exchange giving a signal of gaining position of tilting balance in its favor. Currently, LSE has 506 companies, spanning 37 sectors of the economy, that are listed on the Exchange with total listed capital of Rs. 845 billion having market capitalization of Rs. 2.7 trillion as of date. We have 152 members of whom 113 are corporate and 39 are individual members. An overview of the measures that have taken place at LSE over the past few years as part of its ongoing development plans and reforms portrays a number of significant initiatives taken to improve the regulatory regime and the trading environment for the benefit of Institutional Investors as well as listed companies. FUTURE OUTLOOK Plans in 2011: • Setting up a Disaster Recovery site at an internationally certified data center • Building an in-house primary tier 2-3 data center • Web based Trading Portal • Advanced Trading Terminal with integrated market intelligence • Introduction of Market Makers to improve liquidity and increase market depth • Launching of continuous trading session “After- Hours Trading” • Introduction of Multi Trades Access System for order routing through gateway connectivity • To enhance participation of Financial Institution, Mutual Funds and Foreign Investors • Launching new products like Options, Stock Index Futures, Dividend Futures, and Call Warrants • To achieve target to improve & develop internal software and technology at the international standard • Launching of Mobile Trading • Listing of global stock markets Indices at the Exchange • To establish & Implement trading platform for the Exchange Companies, Agri-Commodities • To establish a comprehensive Research Department to provide the reports at national and international levels • To expand Investors Education Program across the country • To promote Social Responsibilities PAGE 84
FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 LAHORE STOCK EXCHANGE OFFICIAL 6 MONTH STATISTICS US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume Stocks Jul-10 26.11 1.19 89.01 4.05 Aug-10 21.70 0.99 74.86 3.40 Sep-10 16.23 0.81 60.55 3.03 Oct-10 26.98 1.28 107.74 5.13 Nov-10 35.63 1.98 129.09 7.17 Dec-10 38.03 1.81 143.00 6.81 TOTAL 164.69 1.34 604.24 4.93 Bonds Jul-10 0.00 0.00 0.00 0.00 Aug-10 0.00 0.00 0.00 0.00 Sep-10 0.00 0.00 0.00 0.00 Oct-10 0.00 0.00 0.00 0.00 Nov-10 0.00 0.00 0.00 0.00 Dec-10 0.00 0.00 0.00 0.00 TOTAL 0.00 0.00 0.00 0.00 Other Jul-10 0.00 0.00 0.00 0.00 Aug-10 0.00 0.00 0.00 0.00 Sep-10 0.00 0.00 0.00 0.00 Oct-10 0.00 0.00 0.00 0.00 Nov-10 0.00 0.00 0.00 0.00 Dec-10 0.00 0.00 0.00 0.00 TOTAL 0.00 0.00 0.00 0.00 Market Capitalization (US$ millions) Index MONTHLY STOCK VOLUME VS INDEX (US$ millions) Stocks Index MONTHLY MARKET CAPITALIZATION (US$ millions) Jul-10 33,054.51 3,367.38 Aug-10 30,738.74 3,107.18 Sep-10 30,300.45 3,114.90 Oct-10 31,893.35 3,300.73 Nov-10 33,766.57 3,502.97 Dec-10 36,883.95 3,733.01 CONTACT INFORMATION 40 35 30 25 20 15 10 5 0 4,000 40,000 3,500 35,000 3,000 30,000 2,500 25,000 2,000 20,000 1,500 15,000 1,000 10,000 500 5,000 0 0 Jul Aug Sep Oct Nov Dec Jul Aug Sep Oct Nov Dec Contact Name Mr. Amir Razakhan E-mail amir@lahorestock.com Website www.lahorestock.com * Please refer to page 77 for the Pakistan country report. PAGE 85
Page 1:
FEDERATION OF EURO-ASIAN STOCK EXCH
Page 4 and 5:
Page 6 and 7:
Page 8 and 9:
Page 10 and 11:
Page 14 and 15:
Page 16:
Page 21:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 85: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
show all

Download - FEAS

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?