The apex regulators from Securities and Exchange Commission of Pakistan (SECP) are due here at Karachi Stock Exchange (KSE) Thursday next week to discuss, among other long pending issues, why volumes on the country’s largest bourse are still dry. Thursday saw trading volumes at the KSE nose-diving to 38.844 million against 100.826 million of the previous day. This shows a huge dip of 62 million shares or 61.4 percent. The stocks analysts believe that as the listed corporate entities were all set to announce their annual results the risk-averse equity investors were looking at the situation cautiously.
“(The) stocks closed lower amid thin trade as investors remained cautious ahead of corporate earning announcements,” viewed ashen Mehanti, senior analyst and director at Arif Habib Securities.
The analyst said the benchmark, 100-share index, traded in a narrow range despite improved Pak-US relations and expectations for early release of $1.5 billion US’s Coalition Support Fund. Other factors that supported the index to close above days low, Mehanti said, were the record cement dispatch data and positive sentiments in fertilizer sector on constant GIDC on feedstock. According to KSE, a team of SECP, led by Chairman Muhammad Ali, would arrive at Karachi bourse on Thursday, July 12, to hold meetings with the KSE’s Governing Board of Directors. Visiting on the invitation of the KSE, the SECP has notified agenda of the meetings that includes long-pending issues ranging from reasons for low volumes to the provision of internet software to KSE members. As per SECP agenda, the meetings would discuss as to why the market volumes are still dry, how to revive the MIS, how to ensure a successful SLB product, the functioning of NCCPL as a Central Counter Party (Establishment of Settlement Guarantee Fund and Shifting of RMS), the development of derivative segment, debt market, establishment of Bond Pricing Agency, Revised Regulatory Regime for Credit Rating Agency, enhancement of per default contribution from IPF, SIVIE Counter/Exchange, Inter Exchange Trades, establishment of Securities Investor Protection Corporation, investor protection (trade confirmations by stock exchanges), activation of ETFs and options, introduction of Islamic products and Shariah-compliant investment alternatives, utilization of CIIPF for intra-day margins, strengthening of surveillance capacity of the stock exchanges and introduction of SPAN margins, implementation of the Investor Education Plan, image building, integration and demutualization of stock exchanges, implementation of effective inspection plan, broker-to-broker trading on the same Exchange, Back Office Software, and the provision of internet software to the stock members.
“The Chairman SECP has agreed that he along with his team shall meet the officials of the Exchange and Members of the Governing Board of Directors… to discuss and deliberate all matters of mutual interest for the development of capital market and some market related pending issues that need discussion for their resolution,” Haroon Askari, deputy managing director KSE, told the stock members.
The KSE has asked the members for their views and feedback on any other issue or areas of concern that they feel should be discussed with the SECP in the said meeting. The members are to give the feedback latest by Monday, July 9.
