KARACHI, Oct 17: The Karachi Stock Exchange released its report for the year 2005 on Monday, showing number of listed companies almost static at 662, but market capitalization soaring to Rs2,361 billion at September 30, 2005, up from Rs1,723 billion at the same time last year, showing an increase of 37 per cent.

The report showed that 16 new companies were listed compared with 17 last year while new debt instruments listed stood at 6 against 5 the previous year. During the year, the KSE-100 index shot up to an all-time high of 10,303 and low of 6,220 points. The index appreciated by 41 per cent during the year.

Chairman Yasin Lakhani in his review pointed out that some of the mega offerings during the year included those of Pakistan Petroleum; Kot Addu Power and United Bank Limited. “The improved performance of the KSE can be mainly attributed to continued, consistent and positive economic policies of the government, successful privatization process, attracting foreign investors in mega projects like PTCL and National Refinery, sound monetary and fiscal policies of the SBP and the capital market reforms and development measures introduced and adopted by the KSE with full support and under the guidance of the apex regulator, SECP”, the KSE chairman stated.

Directors noted in their report that the average daily turnover of shares had remained a bit lower at 352 million compared with 389 million during last year, however, value of average daily turnover increased to Rs27.41 billion from Rs19.82 billion of the last year. “Despite the dreadful March crisis, the KSE has stood out as the ‘best performing stock market’ amongst some of the top global equity markets as per the recent analysis based on previous eight months period i.e. January-August 2005”, directors said.

The chairman as well as the directors’ in their separate report listed the tasks and challenges ahead, which included: Demutualization; new products; introduction of new index KSE-30 based on free float methodology; increasing the investor base; improvement of corporate governance; introduction of new derivative products in line with international standards, such as index futures, options, etc; future contracts with multiple durations of 30, 60 and 90 days with options of cash settlement and/or physical deliverable; promoting margin financing; cross border listing; introduction of new indices, being more market reflective; investors’ education and enhancing their awareness and reform process to be strengthened further.