KSE’s net income declines by 78.31pc

KARACHI: The net income of the Karachi Stock Exchange (KSE) for the year ended on June 30 declined by a significant 78.31 percent to reach Rs68.094 million against Rs314.085 million last year, the KSE’s directors’ report said on Monday.

The depressing performance is attributed to decline in operating income, reversal of management fee and increased administrative expenses, which resulted in a loss of Rs372.092 million against the loss of Rs174.895 million last year.


Despite this huge loss, the remuneration and benefits to Managing Director Adnan Afridi stood at Rs30.769 million. This includes Rs11 million as annual performance payout even after exclusion of the KSE from the MCSI Emerging Markets Indices.

“Discontinuation of CFS Mk-II also reduced the total revenue of the exchange by Rs37 million.”
Total revenue for the year under review was recorded at Rs731 million, declined by 20 percent against Rs914 million last year, despite an increase of 35.7 percent in the benchmark KSE-100 Index and a rise in the market capitalisation by 28 percent during the period.

The exchange received net foreign portfolio inflows of $567 million during the year against the net outflows of $445 million last year, it said.

Mark-up interest income declined by 17 percent to touch Rs283.201 million against 341.034 million last year.
The share of profit in the associates, including the National Commodity Exchange Limited (NCEL) and the Central Depository Company (CDC) stood at Rs66.953 million against Rs93.208 million, last year.

The security expenses of the exchange increased to Rs14.533 million against Rs11.741 million last year, the report said, adding that these also include the personal security expenses of the managing director, which never incurred in the time of earlier managing directors.

During the year under review, eight new companies, eight open-ended mutual funds and five new debt instruments were listed on the stock exchange, the report added.