Download - FEAS

More documents

Recommendations

Info

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006 KARACHI STOCK EXCHANGE M. A. Lodhi Managing Director During the year index had touched to all time high at 12,274 points with a market capitalization of over US$ 57 billion on 17 April 2006. The Karachi Stock Exchange (KSE) continued to perform well during the financial year 2005-2006. The KSE 100 Index closed at 9,989 points on June 30, 2006 with a market capitalization of US$ 46.52 billion as against 7450 points of the KSE 100 index with the market capitalization of over 34.5 billion at the beginning of the financial year. This translated to an appreciation of around 34% over the period. During the year index had touched to all time high at 12,274 points with a market capitalization of over US$ 57 billion on April 17, 2006. In financial year 2005-2006, 14 companies listed their shares worth over Rs.25.46 billion (equivalent to around US$ 425 million) on the Exchange. The index appreciated by 34% as compared to 41% increase in financial year 2004-2005 and the average daily turnover of shares was 324 million as compared to 347 million during last financial year. The daily average value of shares was Rs.35.49 billion as compared to 27.35 billion in last year. The economy has delivered yet another year of solid economic growth of 6.6%. However, the pace has slowed from the previous year of 8.4%. The main driver of growth has become the services sector. With over 50% of the economy is now in the services sector. The boom in services sector is being fuelled by the transportation, telecommunication, financial and retail sectors. However, inflationary pressure in the economy, mainly emanating from high international oil prices and increased domestic demand of various commodities, led to rising interest rates. The stock market performance is attributable to the impressive growth in the profitability of the listed sectors in general and banking, cement, oil & gas, fertilizer and automobiles in particular. The Government polices on privatization and liberalization also contributed to the positive market performance. In view of the growing future demand, expected entry of private of sector in the new ventures and aggressive privatization policy of the government will require huge additional investment. With more large issues to come for listing for raising financial resources from the capital market, it is expected that size of the market in terms of volume and market capitalization will increase further, thus attracting both local and foreign portfolio investment in the country. Moreover, with the improved and efficient trading systems at the Exchange with sound risk management and stringent regulatory framework, the prospects of the KSE are full of promise. HISTORY AND DEVELOPMENT The KSE came into existence on 18 September 1947. It was later converted and registered as a company limited by guarantee on 10 March 1949. As many as 90 members were licensed at that time, only half a dozen were active as brokers. Initially, only five companies were listed with a paidup capital of Rs. 37 million (US$ 0.62 million). As of June 30, 2006, 658 companies were listed with the market capitalization of around US$ 46.5 billion having listed capital of US$ 8.2 billion. The KSE was declared as “The Best Performing Market of the World” in the year 2002, by international magazine “Business Week” and a US newspaper “USA Today” on registering increase of 112% in the KSE 100 Index. In 1991 the secondary market was opened to foreign investors on an equal basis with local participants. This measure, along with a policy of privatization, has resulted in rapid growth of the market since 1991. Privatization has been adopted as a philosophy, and activities that were previously reserved for the public sector have now been opened to the private sector. In 2006 the KSE has achieved another milestone as the KSE 100 Index had touched at all time high of 12274 points on 17 April 2006 and closed at 9989 points on 30 June 2006. The market capitalization also crossed US$ 50 billion and reached at US$ 57 billion on 17 April 2006 and closed at US$ 46.52 billion on 30 June 2006. The record-breaking performance of the KSE during the last six years is attributed to the positive and consistent policies of the government especially on privatization and liberalization and a number of measures implemented by the Exchange. In view of the growing future demand, expected entry of private sector in the new ventures and aggressive privatizing policy will require huge additional investment. With more large issues to come for listing for raising financial resources from capital market, it is expected that the size of the market in terms of volume and market capitalization will increase further. The KSE has taken a number of measures to increase investor’s confidence by making the Exchange more transparent and introduced modern technology in order to convert the market into a truly modern and efficient one. In this regard UIN registration has been implemented from 1 August 2006, internet based trading has also started from 6 December 2004. Continuous Funding System (CFS) was introduced and implemented with effect from 22 August 2005 to improve liquidity in the capital market replacing the Carry over Transactions (COT or Badla) completely. In addition, corporate governance is now the part of the KSE’s listing regulation. Transparency has been enhanced with the implication of quality audits, quarterly financial reports and timely dividend payouts. FUTURE OUTLOOK The KSE is determined to remain one of the growing institutions not only within the country but globally as well. The future projects include:- • Demutualization of the Exchange, • Introduction of new derivative products in line with international standards, such as index futures, options, etc., • Futures contracts with options of cash settlement, • Promoting margin financing, • Improve I.T. infrastructure including setting up of BCP & DRS, • Cross border listings, • Investors’ education and enhancing their awareness; and • Reform process to be strengthened further. PAGE 84
FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006 KARACHI STOCK EXCHANGE OFFICIAL 6 MONTH STATISTICS US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume Stocks Jan-06 14,231.0 790.6 8,461.4 470.1 Feb-06 22,656.8 1,258.7 10,304.7 572.5 Mar-06 17,945.3 815.7 8,127.4 369.4 Apr-06 14,014.8 778.6 6,031.6 335.1 May-06 11,716.5 532.6 5,131.8 233.3 Jun-06 10,663.8 484.7 5,284.8 240.2 TOTAL 91,228.1 776.8 43,341.8 370.1 Bonds Jan-06 0.0 0.0 0.0 0.0 Feb-06 0.0 0.0 0.0 0.0 Mar-06 0.0 0.0 0.0 0.0 Apr-06 0.0 0.0 0.0 0.0 May-06 0.0005 0.00002 0.00001 0.0000005 Jun-06 0.0009 0.00004 0.00001 0.0000005 TOTAL 0.001 0.00003 0.00002 0.0000005 Other Jan-06 n/a n/a n/a n/a Feb-06 n/a n/a n/a n/a Mar-06 n/a n/a n/a n/a Apr-06 n/a n/a n/a n/a May-06 n/a n/a n/a n/a Jun-06 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a Market Capitalization (US$ millions) Index MONTHLY STOCK VOLUME VS INDEX (US$ millions) Stocks Index MONTHLY MARKET CAPITALIZATION (US$ millions) Jan-06 50,624.8 10,524.2 Feb-06 54,349.3 11,456.3 Mar-06 54,284.4 11,485.9 Apr-06 53,309.5 11,342.2 May-06 46,270.3 9,800.7 Jun-06 46,531.3 9,989.4 25,000 20,000 15,000 10,000 12,000 10,000 8,000 6,000 4,000 60,000 50,000 40,000 30,000 20,000 5,000 2,000 10,000 0 0 0 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun CONTACT INFORMATION Contact Name Mr. Mohammed Yacoob Memon E-mail gm@kse.com.pk Website www.kse.com.pk PAGE 85
Page 1 and 2:
FEDERATION OF EURO-ASIAN STOCK EXCH
Page 3:
Page 6 and 7:
Page 8 and 9:
Page 10:
Page 14 and 15:
Page 18 and 19:
Page 20:
Page 23:
SEMI ANNUAL REPORT OCTOBER 2006 app
Page 27:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 128: 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:
Page 179 and 180:
show all

Download - FEAS

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

Delete template?

Save as template?