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ISLAMABAD STOCK EXCHANGE
Jan 27 - Feb 02, 2003
The Chairman of Islamabad Stock Exchange (ISE) is of the view that the sudden dip in the stock market during the current week should not cause any concern as it only indicated normal ups and down in an active market. According to international standards ups and down upto 20 percent of the index should neither be considered a boom or a crash of a market, he added.
Air Commodore (Retd) Ch. Muhammad Sharif, unanimously elected Chairman of the ISE, last month, was appreciative of the reforms carried out by the Securities and Exchange Commission of Pakistan (SECP) which had strengthened the market fundamentals. The tight regulatory control and circuit breakers at various levels and its close monitoring by the SECP has made a serious crash of the market almost impossible in normal political and law and order situation, Ch. Sharif said adding that in view of an unprecedented rise of over 1100 points in the KSE index during the last about six months the current bearish spell was normal, weak holders disinvest after short intervals for profit-taking and this was the major cause for the sudden dip after a bullish spell. He however, hoped that market would soon stabilize at about 2500 points.
Talking particularly about Islamabad Stock Exchange, Ch. Muhammad Sharif said that it started functioning in August 1992 and within ten years, it has developed into a vibrant, efficient and stable market. He claimed that today, the ISE was one of the premier Stock Exchanges of the country known for the highest standard for transparency in its operations, excellent risk management, dynamic market technology and lowest overall costs of listing. Over the years, ISE has made an enormous contribution to the issuers and the listed companies by helping them to diversify their capital financing needs away from traditional commercial/investment banking channels. Through efficient process of resource allocation, the ISE has also enabled the listed companies to utilize the capital raised at our market for creation of a variety of jobs, goods and services thereby significantly contributing to the economy of Pakistan. It may be mentioned that during the last calendar year, ISE stood in unique with KSE and LSE to be declared as the best performing stock markets of the world. Compared to a surge of 112% in KSE index and LSE's 25 index rise of 76%, the ISE recorded a rise of 51% during the last year. "It is matter of great pride for all of us today that the Pakistan stock markets outperformed the world's leading stock market on the sheer strength of market stability and discipline. ISE has a unique distinction of being the only stock exchange in the country to earn financial surplus during the last year", he added.
Retd. Air Commodore, turned a successful stock broker, said that they were not complacent with what they have achieved as the ISE believes that our stock markets have only achieved a limited success as we have failed to mobilize a vast range of capital due to a low level of participation of the general public in the investment activities. One of the famous newspapers "The USA Today" has recently reported that less than 1% population of Pakistan invests in stocks and only about 25,000 people traded more than 100 shares in a year. This caps the extent to which the stock markets have lacked in developing habits of investments in the stock market. Although there are many reasons for the lack of enthusiasm of investors, but most unfortunate reason is the absence of education/awareness amongst the people towards the investment in stocks.
It is due to this reason, that the ISE has planned to start a series of initiatives for the purpose of educating the investors.
ESTABLISHING OF INVESTORS STUDY CENTRE
The Islamabad Stock Exchange has started a comprehensive educational programme for the investing public to create better understanding and general awareness. An ambitious program of investors education/awareness of capital market is being initiated by the Exchange for the general public with a view to disseminate the basic knowledge of what this market is all about. In this connection, an Investor Information Centre is being created at the ISE that can accommodate about one hundred people at one time. The ISE aims to widely publicize this initiative so as to attract general public to come and visit Stock Exchange for learning about the functioning of stock markets. ISE on way to become the first stock market to open it self for investor's education by providing such a facility to our potential investors.
DOCUMENTARY FOR MASSES AWARENESS ABOUT STOCK MARKET
The ISE has programmed to make a documentary for the awareness of the masses about the stock market. This documentary would be regularly aired to the general public visiting the stock exchange and would also be shown on the cable TV channels with the help of our media sponsors.
LAUNCHING OF HOTLINE FOR INVESTORS
The ISE has also planned a special purpose "Investors Hotline" through the installation of a universal access numbers. This hotline will provide recorded short messages on a variety of topics of interest to the investors. The callers on this hotline will find useful answers as very beneficial to them.
INSTALLATION OF BILLBOARD
For the benefits of the investors billboards would be installed at the prominent places with the sponsorship of the reputed companies.