December 27, 2002	Friday	Shawwal 22, 1423

KARACHI, Dec 26: Shaukat Aziz, the Adviser to the Prime Minister on Finance & Economic Affairs appreciated the performance of the stock market and observed that the current upsurge in share values was due to a number of positive developments, both internationally and locally.

A press release issued by the KSE stated that Shaukat Aziz had stated that in a meeting with the Managing Director of KSE, Moin M. Fudda, who called on him on Thursday at the State Bank of Pakistan, to discuss various market related matters.

Mr. Fudda apprised Shaukat Aziz about the current bullish market trends whereby the KSE-100 index had touched 2637.13 points, which was the highest index level during the last eight years, recording an appreciation in stock prices by over 100 per cent during the current calendar year. The volume at 618 million shares traded on Thursday, was the all time high and scaled past the previous best of 536 shares business on March 21, 2000, the KSE MD told the adviser.

Shaukat Aziz observed that a number of positive developments on the local and international fronts had also contributed to improving the present investment climate in the country as well as restoring the confidence of small investors. He said that reduction in interest rates was one of the major factors, which had a positive impact on the capital market development in the country.

The adviser further stated that the stability of the exchange rates backed by strong build-up of foreign exchange reserves, low inflation rate as well as increased revenue collection by the government, by over 16 per cent during the current financial year as compared to last year and TFC growth had resulted in increased economic activity in the country.

“The Advisor also acknowledged the role of the SECP in the corporate governance and enhancing the efficiency and operational transparency at the stock exchanges, which have positively contributed in the increased dividend pay-outs compared to previous years and visible change in the corporate behaviour whereby restoring the market confidence among investors,” the KSE said. All of that had helped Pakistani stock markets to outperform regional markets as acknowledged by the ‘Business Week’, which termed KSE as the best performing market in the world.

In the meeting with the adviser, the Managing Director KSE also appreciated the role of the State Bank of Pakistan and its Governor, Dr. Ishrat Husain, who had created the enabling environment by introducing reforms in the banking sector, which also contributed in enhancement of investors’ confidence in the capital markets, the KSE statement concluded.