KARACHI, Dec 19: A delegation of the representatives of the country's capital market called on President Asif Ali Zardari at Chief Minister House on Wednesday. The Federal Finance Minister, Dr Abdul Hafeez Shaikh was also present on the occasion.

The market delegation was led by Securities and Exchange Commission of Pakistan Chairman Muhammad Ali. He was accompanied by the chairmen and MDs of all three stock exchanges; chairmen of demutualisation committees and five senior brokers, Bashir Jan Mohammad, Amin Tai, Arif Habib and Aqeel Karim Dhedhi.

Haji Ghani Haji Usman, who is chairman demutualisation Committee Karachi, said that the talks revolved around various issues, including the process of demutualisation. While it was heartening to note that the Demutualisation Act was passed by the parliament, the capital market representatives said that they were now looking forward to the party that would hold 40 per cent strategic shares of the demutalised exchanges.

The importance of the stock market for the economy was given a serious thought and the official side was said to have recommended convincing sponsors to launch new projects with 100 per cent equity mobilised through the exchanges.

Market development issues and products were also discussed.

Haji Ghani said that the market representatives recommended that profit-making companies be asked to distribute 40 per cent of their earnings in dividends to shareholders so as to encourage greater investor participation.

The KSE or the SECP did not issue a statement regarding the talks with the president and the finance minister. But several representatives present at the meeting said that everyone was in good cheer over the stock exchange index crossing well over its all-time best.

“Enthusiastic market participants even suggested the KSE-100 index to reach as high as 20,000 points level, from current 16,900,” he said.