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KSE chief briefs WB team

on capital market growth

RECORDER REPORT

KARACHI: Risk management initiatives by the Karachi Stock Exchange and the government policies of liberalisation and privatisation have helped the local capital market growth, Arif Habib, the Chairman of the KSE, said on Thursday.

A delegation of the World Bank Financial Sector Assessment Mission comprising Joeseph Permia, team leader, Mudassir Khan and Juan Costain visited the KSE on Thursday.

They held a meeting with the KSE, Chairman Vice-chairman Salim Chamdia, Managing Director Shahid Ghaffar and Mohammad Yacoob Memon, General Manager of KSE.

The World Bank Mission is currently on a visit to Pakistan to review the progress of financial sector including the central bank, commercial banks and non-banking financial institutions.

Arif Habib briefly described the circumstances responsible for the growth of market in the recent years.

He said that the government's policies of liberalisation, privatisation and opening the securities market for foreigners had helped the local capital market growth.

There has been a tremendous increase in the daily trading activity, increase in number of listed companies and market capitalisation.

The KSE Chairman also explained various factors responsible for deteriorating market conditions during last few years. He referred to the circumstances prevailing during 1997-98 which adversely affected the market, including the political infighting, detonation of the nuclear devices leading to economic sanctions and freezing of foreign currency accounts.

Arif Habib also referred to the factors responsible for the current bullish trend on the stock market which include rescheduling of foreign exchange loans, declining interest rates, good agriculture crops, achieving revenue targets by the government, reduction in the bank borrowing rates and profits on government's National Saving Schemes.