KSE profits tumble
Net income of Karachi Stock Exchange plunges 78% to Rs68.094m in 2009-10 compared with Rs314.085m the preceding year.
KARACHI:
Net income of Karachi Stock Exchange (KSE) plunged by a significant 78 per cent to Rs68.094 million in 2009-10 compared with Rs314.085 million in the preceding year.
According to the annual report of the KSE, issued here on Monday, the bourse took a gross loss of Rs372.092 million, as compared to a gross loss of Rs174.895 million last year due to a decline in operating income, reversal of management fee and increased administrative expenses. “Discontinuation of continuous funding system (CFS) MK-II also reduced the total revenue of the exchange by Rs37 million” cited the KSE directors’ report.
The report also highlighted that during the year, eight new companies, eight open end mutual funds and five new debt instruments were listed at the exchange. KSE received net foreign portfolio inflows of $567 million during the year compared to a net outflow of $445 million last year. Mark-up interest income declined by 17 per cent to Rs283.201 million compared to Rs341.034 million in the previous year. Profits earned through associates including National Commodity Exchange and Central Depository Company also declined to Rs66.953 million during the period against Rs93.208 million last year. Security expenses of the bourse increased to Rs14.533 million from Rs11.741 million in 2009. Despite the dismal performance, remunerations and benefits to the managing director stood at Rs30.769 million. This includes Rs11 million as annual performance payout, in a year that saw the exclusion of KSE from Morgan Stanley’s MSCI Emerging Markets indices.
Total revenue for the year under review was recorded at Rs731 million, registering a fall of 20 per cent against the previous year’s tally of Rs914 million.
The decline was seen despite an increase of 37.5 per cent in the benchmark KSE 100-index and the rise of 28 per cent in market capitalisation during the period.
Published in The Express Tribune, October 26th, 2010.
Net income of Karachi Stock Exchange (KSE) plunged by a significant 78 per cent to Rs68.094 million in 2009-10 compared with Rs314.085 million in the preceding year.
According to the annual report of the KSE, issued here on Monday, the bourse took a gross loss of Rs372.092 million, as compared to a gross loss of Rs174.895 million last year due to a decline in operating income, reversal of management fee and increased administrative expenses. “Discontinuation of continuous funding system (CFS) MK-II also reduced the total revenue of the exchange by Rs37 million” cited the KSE directors’ report.
The report also highlighted that during the year, eight new companies, eight open end mutual funds and five new debt instruments were listed at the exchange. KSE received net foreign portfolio inflows of $567 million during the year compared to a net outflow of $445 million last year. Mark-up interest income declined by 17 per cent to Rs283.201 million compared to Rs341.034 million in the previous year. Profits earned through associates including National Commodity Exchange and Central Depository Company also declined to Rs66.953 million during the period against Rs93.208 million last year. Security expenses of the bourse increased to Rs14.533 million from Rs11.741 million in 2009. Despite the dismal performance, remunerations and benefits to the managing director stood at Rs30.769 million. This includes Rs11 million as annual performance payout, in a year that saw the exclusion of KSE from Morgan Stanley’s MSCI Emerging Markets indices.
Total revenue for the year under review was recorded at Rs731 million, registering a fall of 20 per cent against the previous year’s tally of Rs914 million.
The decline was seen despite an increase of 37.5 per cent in the benchmark KSE 100-index and the rise of 28 per cent in market capitalisation during the period.
Published in The Express Tribune, October 26th, 2010.