January 25, 2003	Saturday	Ziqa’ad 21, 1423

KARACHI, Jan 24: On account of stringent monitoring and careful risk management, the trading and settlement process was proceeding smoothly and there was no reason for investor concern, the KSE Managing director Moin M. Fudda said in a press release issued on Friday.

He stated that the KSE-100 index had fallen 345.08 points during this trading week to settle at 2,609.45 points level on Friday, but that members capital adequacy limits were being monitored on a constant basis and being adequately met and exposure limits were also being fulfilled on time without delay. The KSE MD appreciated the extensive cooperation extended by the members of the KSE in meeting all regulatory requirements on time.

The press statement said that between January 1-15, the KSE 100-share index had risen by 289 points from 2,661.53 to 2,950.29 points. “The massive buying was done on the back of carryover transactions as a result, the rates in the COT market had hit record highs in the middle of the month, which led to a sell-off in the market”, said Mr. Fudda, adding that did not however, pose any risk to investors since the management was carefully monitoring and managing the trading and settlement process.

The KSE press release said that during 2002, the KSE was marked as the world’s best performing market having gained 112 per cent year-on-year amidst a record rally. Strong liquidity created by declining interest rates environment, high dividend yields averaging double-digit per cent and improved corporate and securities governance had driven the rally, the KSE press release concluded.