NYSE chief terms $40B market capitalization by Karachi Stock significant
Pakistan Times Business & Commerce Desk

WASHINGTON (US): New York Stock Exchange Chairman and Chief Executive, Hon Thain has said that achievement of $40 Billion Market Capitalization by Karachi Stock Exchange (KSE) is "a significant value for an emerging capital Market."

He commented this in response to Moin Fudda, Managing Director KSE's comments at the Annual International Exchange Globalization & Clearing Forum held at New York.

Mr. Thain complimented KSE for "outstanding performance" and particularly surpassing the turnover of One billion shares, which he believed, was "by far, the highest turnover for Stock Exchange in a developing market."

MD KSE informed the delegates, which comprised 32 countries of the world, included UK, Europe, Asia, Africa, Middle East and the USA, that due to economic and capital market reforms including corporate governance, carried out during last five years, the KSE has achieved the status of "best performing market of the world."

According to a report by the Association of Pakistani Professionals (AOPP), Peter Clapman, Senior Vice President of TIAA-CREF, one of the largest fund manager with funds over $350 Billion said that his Company continues to diversify their investment in global market. He emphasized the need for clear market regulations and Corporate Governance rules by the listed companies.

Mr. Richard Lindsey, President Bear Stearns Securities said that U.S. investors hold 10% interest in foreign equities and 25 US Pension Funds now hold 20% of their funds in foreign equities.

Rober Carlson, Vice President at Calpers, another leading fund managers emphasized that as shareowners, Calpers play an active role by urging the Corporations to redefine their strategies to meet the Corporate Governance, Social responsibility and best practices which ultimately produce higher dividend to the shareholders.

He was pleased to learn from Moin Fudda that Code of Corporate Governance has been made of the listing regulation of KSE. He said that for Calpers investing in emerging market, their key consideration include political and economic stability, Corporate Governance clear market regulations including freedom of capital inflow and outflow.

Mr. Paul Chow CEO of Hong Kong Stock Exchange highlighted the performance of Hong Kong Stock Exchange, which after demutualization has achieved a number of milestones and has attracted global investors. He highlighted the importance of Risk management and issuer and investors satisfaction being the key factors for the success of Stock Exchanges in Asia.

The Globalization forum also focused on technology. Mike Rigodanzo Senior Vice President at HP, the main sponsor of the event stressed the need of innovation in the trading platforms and storage capabilities.

The three-day conference was also addressed by representatives of European Commission, Euronext and CEO of Deutsche Borse Group. On the side in of the conference MD KSE took the opportunity of apprising the fund managers from USA, UK and Europe about the development in Capital Market of Pakistan and the prevailing strong economic stability in Pakistan.

Syed Asif Alam, President of Association of Pakistani Professionals said that the comments by NYSE chairman is refreshing "and, we hope that the Karachi Stock Exchange continues to break records in years to come."

KSE 100-Index closes high on last minute buying

Last minute entry of bulls eased the selling pressure in leading scrips at Karachi Stock Exchange Friday as 100-Index managed to gain 31.81 points to close at 9603.73, dealers said.

A dealer Iqbal Husain said that the turnover volume was also low at about 633.723 million shares as prices of 156 scrips went down while 144 recorded gains and 41 remained unchanged.

The market capitalization was up by Rs 15.35 billion to more than Rs 2.643 trillion which improved the Index by 0.33 percent. He said that the market opened on a high pitch, recording an immediate gain of 150 points in one hour of morning session due to buying in oil sector but fell on selling pressure specially in PTCL, PSO and Pak Oil Fields.

However, in the second session the market improved due to buying in fertilizer and banking sectors. At this point selling pressure again mounted on profit taking and Index entered in negative zone.

However, the last minute buying in selected scrips pushed up prices and Index settled above 9600 level on the weekend. PTCL led the volume leaders with a record 165.616 million shares followed by Fauji Fertilizer (BQ) with 88.055 million shares, OGDC with 70.279 million shares, D G Khan Cement 69.424 million shares and TRG 26.977 million shares.

OGDC closed at 164.25, PSO 470, Pak Oil Fields 342.95, PTCL86,85, PPL 302.90, Fauji Fertilizer (BQ) 35.30, NBP 155.95, DG Khan Cement 74.80, Fauji Cement 18.55, Lucky Cement 50.80 and Dewan Salman 29.

Treet Corp recorded the highest gain of Rs 26.35 to 377.85 followed by Noon Pak up by Rs 13.30 to 19.65 while AKD Securities dipped by Rs 17 to 331 and Lakson Tobacco down by Rs 13 to 270.●