ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
LAHORE STOCK EXCHANGE
Mian Shakeel Aslam
CEO/Managing Director
Pakistan has made significant efforts to stay
on the course of stabilization and structural
reforms against the backdrop of weak external
demand and difficult security and political
environment. Privatization process was almost
redundant and FDI’S were markedly low and
the market witnessed unprecedented outflow
of the portfolio investments.
LSE witnessed one of its most volatile trading
years. LSE-25 Index was 1450.57 points on
January 1st and after touches the bottom of
1300.94 points on January 26, 2009 started to
increase gradually and touch the height of
3061.57 points on September 24, 2009.
The Exchange is well positioned in an
enabling environment with the cooperation
of the regulators to capitalize all available
opportunities with its distinct performance
to restore the confidence of investors.
LSE-25 Index is placed at 2893.88 points on
December 31, 2009 with market capitalization
of US$ 30.621 billion. The average daily
turnover of shares remained 17.128 million
shares with an average daily value of shares
traded of US$ 8.189 million. LSE listed 5 new
companies 10 Open-end Mutual Funds and 1
Preference Share during the period under
review. The Exchange is well positioned in an
enabling environment with the cooperation of
the regulators to capitalize all available
opportunities with its distinct performance to
restore the confidence of investors and to tap
the potential listing opportunities.
HISTORY AND DEVELOPMENT FUTURE OUTLOOK
Lahore Stock Exchange (LSE) was
incorporated on 05 October 1970 in Lahore,
the provincial capital of Punjab, Pakistan, under
the Securities and Exchange Ordinance in
1969, as a company limited by guarantee.
The activities of the Exchange have increased
in all areas since inception. LSE introduced
automated trading in 1996 and became the
first fully automated Stock Exchange of
Pakistan. LSE has become a key institution
in the financial sector of Pakistan and has a
membership of 152 brokerage houses.
As of December 31, 2009 there were 512
listed companies, having a listed Capital of
US$ 8.988 billion with a market capitalization of
US$ 30.621 billion, besides 42 Open-end
Funds and 12 Term Finance Certificates
(corporate debt instruments) of companies are
also listed at LSE. LSE would continue with its efforts to increase
its trading volumes through increasing its
outreach and collaboration with other
exchanges in this regard. It would also
continue to look after the interest of all its
stakeholders including the investors, issuers
and intermediaries as well as fulfill its role as
the front-line regulator to make LSE as the
exchange of choice for all the participants.
The Exchange is fully committed to providing a
transparent, efficient, fair and investor friendly
environment for the benefit of investors and
issuers. The goal is to bring LSE up to
international standards in operational,
technical, regulatory and quality management
areas and to ensure that not only domestic but
also foreign investors are attracted to the
Exchange for the development of the country.
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A major challenge lying ahead for the
exchange is its demutualization. This will have
a major role to play in the overall reformation of
the capital markets of Pakistan and through its
successful implementation will enhance
governance standards, transparency and
ultimately investor’s confidence. The
Demutualization Committee and Management
of the exchange through consultation with the
SECP will be working tirelessly in its efforts to
ensure a swift and timely transition. With LSE’s
voluntary adoption of the Code of Corporate
Governance, its innovative strength in software
development and enhancement of its
geographical outreach, the new management
team is well positioned to capitalize all the
available opportunities with its distinct
performance.
LSE has embarked on the Information Security
Management System program and in order to
achieve this goal, LSE has established a
security organizational structure in its working
environment. The emphasis of this project
is to keep pace with the technological
advancements of the modern era and to
improve the security level in its information
system.