KARACHI, Oct 29: The FY05 witnessed 18 new public offerings at the KSE, increasing its paid-up capital by Rs32.3 billion, and adding substantially to the market capitalization, stated the SBP Annual Report 2004-05.
It noted that the additional capitalization during FY05 was lower than the Rs53.4 billion raised during FY04, but the major difference between the two years “was due to a single issue — the exceptionally large offering of Pakistan’s oil exploration giant OGDC that alone contributed Rs43 billion to listed capital in the earlier year. The most significant offering during FY05 was that of Bank Alfalah, Pakistan Petroleum Limited and KAPCO.
The SBP report mentioned: “FY05 turned out to be a very eventful year for the capital markets of the country”, adding that the spectacular rise in all the stock markets which lasted till March 2005 was largely driven by growing confidence and enthusiasm of the market players on the performance of the economy as well as on improvements in the fundamentals of the stocks traded.
“However, towards the end of this extended rally, the rise was more and more due to speculative positions and a correction looked inevitable”, stated the SBP report, adding that as highly leveraged positions of the buyers and rather limited supply of COT financing restrained the continued upward movement of the index post March 2005, the KSE-100 index suffered a massive 2,706 point correction to surrender a significant portion of its financial year 2005 gains and reducing the overall growth to 41.1 per cent in FY05.
“However, even this lower rise was enough to rank the local bourse amongst the best performing markets of the period”, the report said.
