KARACHI, Oct 27: The KSE-100 index rose by 55 per cent to touch 5,279 points as on June 30, 2004 and the average daily turnover increased by 77 per cent to 389 million shares , compared with the earlier year's average of 219 million shares.

This was stated by Arif Habib, the chairman, Karachi Stock Exchange, in his review for the year. The KSE released its report and annual accounts for FY '04, on Wednesday.

The KSE chairman attributed 'impressive' performance of the KSE to continuation of positive economic policies of the government, resulting in restoration of investors' confidence in Pakistan's economy. "The government's policy of privatization has been most successful, attracting hundreds of thousands public investors for the programme, broad basing the share ownership in the country," Arif Habib stated.

The monetary and exchange policies of the SBP was also said to have contributed significantly in increasing the appetite for listed securities. "In order to advance the objective of making our market of international standards, the Board of Directors have taken a number of important decisions during the year under review in areas of new products development, trading infrastructure upgradation, dispute resolution and investors' education," said the KSE chairman.

New listings of securities was also said to have picked up pace during the year. A chart appended to the report showed that 13 new companies had been listed during the year, compared with 6 new listings last year and 10 in the three preceding years combined. Listed capital of new companies also jumped to Rs62.2 billion, which was about four times the aggregate of fresh capital listed in the four previous years between 2000 and 2003.

Moin M. Fudda, managing director KSE, stated in the directors' report that improved economic fundamentals and continuation of pro-growth economic policies, brisk pace of privatization through capital market (IPOs of OGDCL and PPL and additional public offerings of NBP, PIA, SSGC), improved Indo-Pak relations, low interest rates, wide range of structural reforms, prudent and consistent macro-economic policies pushed the KSE-100 index from 3402 points at the end of June 2003 to an all time high of 5,620 with the market capitalization of Rs1,512 billion (US dollars 25.41 billion) on April 19, 2004.

The KSE MD listed the significant achievements of the year, which included: promotion of new equity and debt listings by reducing listing fees; held series of investors' education/awareness programmes and publication of investors awareness guide; procurement of new hardware to upgrade level of automation and to enhance efficiency of existing IT facilities/services; development of system and operating producers of Over the Counter Market; refurbishing exchange buildings and improving the physical security measures; enhancement of operational efficiency in Risk Management Systems by receiving on-line pledge from CDC and strengthening the Surveillance Department by further induction of professional staff.

"Nevertheless, the coming year is not lesser challenging, as it is contemplated to initiate further projects/activities to ensure that KSE should remain one of the fastest growing National Institutions of the country," resolved Moin Fudda. Going forward, he listed ten projects: Commencement of live operations of Over the Counter Market; Introduction of a new derivative product including index futures; cross border listings; introduction of new indices, being more market reflective & representative; strengthening the existing monitoring of compliance with the Code of Corporate Governance by listed companies; consolidation of existing exchange rules and regulations in a single rule book; strengthening of market monitoring and surveillance departments; commencement of internet trading; establishment of full-fledged disaster recovery and business resumption site and refurbishment of the trading hall with electronic display boards.

The income and expenditure account of the KSE for the year ended June 30, 2004 showed net income for the year amounting to Rs190m, which went to wipe out the previous accumulated losses of Rs122m and pull the accounts of the bourse, out of the red. The KSE carried total assets of Rs2.6 billion on its balance sheet at end FY'04, which was a billion rupees more than Rs1.6bn at the end of last year. The 57th AGM is scheduled to be held on October 28.