FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
KARACHI STOCK EXCHANGE
Exchange) for both trading and market data.
The National Clearing & Settlement Company
and Central Depository System has also
been introduced. Transparency of the listed
companies has been enhanced with the
introduction of quality audits, quarterly financial
reports and timely dividend payouts. Corporate
governance is also now the part of the KSE’s
listing regulation.
FUTURE OUTLOOK 2014
Introduction of New Products and New
Measures:
KSE plans to introduce new products into the
market, to further cater to the growing needs of
its investors and help develop Pakistan’s capital
markets. KSE will be introducing: Trading in
Government Securities which includes Treasury
Bills, Pakistan Investment Bonds and Ijara
Sukkuk, Exchange Traded Funds, new derivative
products- options, etc, and Introduction of SME
board
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
The year 2013 was mixed for the economy of
Pakistan. Positive indicators included sharp
appreciation in real estate and capital markets,
increase in worker remittances, rise in industrial
activity and Government’s commitment to the
program of IMF. Business sentiments also
showed positive signs with increase in private
sector credit off-take. However, challenges
of energy shortage, law and order, rising
inflation, lower tax to GDP ratio continue to be
major obstacles to sustainable growth. Overall
commitment and fiscal restructuring is needed
to keep economy on the track.
Growth in manufacturing sector is 4.4%
which is highest n last five years. Large scale
Manufacturing posted a healthy growth of
5.7% during July - December 2013 with major
improvements shown by fertilizer, petroleum,
paper and leather sectors. for the Exports of the
country have also grown by 3.5% in FY 2013 as
compared to decline of 4.4%. Granting of GSP
plus status to Pakistan by European Union has
shown positive growth in textile exports and
will Pakistani products to compete with other
countries that have similar concessions. It is
forecasted that the exports will be increased by
6% in year 2014. The real GDP growth in the
outgoing FY 2013 was recorded at 3.6% and
between 3-4% has been forecasted for the FY
2014. Pakistan’s economy has strong capacity
to overcome the challenges originated from
internal and external economic environment
while struggling towards achieving long term
sustainable growth. Government has also
decided to privatize the public entities and
determination to cut in subsidies to reduce the
fiscal deficit.
Performance of the Market
A total of, 560 companies were listed at Karachi
Stock Exchange with the listed capital of Rs.
1,130 billion (US $ 11 billion) with the market
capitalization of Rs. 6,056 billion (US $ 57
Key Information Contacts
Government of Pakistan www.pak.gov.pk
Ministry of Finance www.finance.gov.pk
Privatization Commission www.privatisation.gov.pk
State Bank of Pakistan www.sbp.org.pk
Security and Exchange Commission of Pakistan www.secp.gov.pk
CONTACT INFORMATION
Contact Name Mr. Haroon Askari
PAGE 58
E-mail [email protected]
Website www.kse.com.pk
billion) as at December 31, 2013. KSE 100 Index
opened at 16905 points on January 1, 2013
and closed at 25261 points, showing a gain of
around 50% over this period. The benchmark
index touched historical high of 25579 points on
December 20, 2013. The average daily traded
volume in the Ready market for the Jan - Dec
2013 was 238 Million shares against 197 million
shares during the same period last year.
In order to broaden the investor base, Trading
in Government Securities will also be started at
Karachi Stock Exchange from January 2014.
Investors will now have greater access and
opportunity to channelize their savings with
government papers, which would increase the
debt of the secondary market and pave the
way for utilizing stock exchanges as a medium
for direct government borrowing from general
public.
KSE launched numerous focused campaigns
to generate large scale awareness amongst
individual savers regarding the role of capital
market in the overall context for their long term
financial planning. In this regard, more than 20
programs have been conducted in collaboration
with other market participants