Market playing on sentiments
By Tabinda Shakeel
By the end of November 2003, The News-Prime Bank Composite Index of VIS had successfully managed to pull up its point-level, which witnessed its amazing performance during the month. On 25th November 2003, the index managed to sustain its position above the barrier of 5700 points, as it closed at 5716 points by obtaining 186.8 points, having rise of 3.4% as compared to the last month's closing of 5529.3 points.

IN FOCUS
Who is responsible for the cotton crisis?
By Akbar Sial
The constitution of a committee by the Federal government to probe into the factors leading to uncontrolled pest attack on cotton crop is a welcome step. It depicts that the government realises the gravity of the situation that emerged after the expected shortfall in cotton production in the backdrop of skyrocketing prices in the international market.

RATING ROUNDUP
Publicly Notified Ratings by JCR-VIS Credit Rating Company LIMITED
Adamjee Insurance Company Ltd.
Insurer Financial Strength (IFS) Rating AA-
ON RATING WATCH
Altowfeek Investment Bank Ltd.
Entity (medium to long term) B
Entity (short term) B

STOCK MARKET CONFIDENCE
NEWS - CresBank STOCK EXCHANGE CONFIDENCE BAROMETER
Standing at low
During December 2001, level of investors' confidence in the stock market remained low as compared to that prevailed during the preceding month. The News-CresBank Confidence Barometer for December was measured at 38 per cent on an aggregate basis. Despite dropping down from 47 per cent of November, the barometer managed to maintain the same category of 'very low to low'. A week-to-week analysis reveals that the barometer managed to go as high as 44 per cent, in the middle of the month. and dipped as low as 33 per cent toward the month-end, hardly float above the 'very low' category.

The Stock Market Confidence Barometer developed by Vital Information Services Pvt. Ltd. is a unique instrument that expresses in percentage the level of investors' confidence prevailing at the Karachi Stock Exchange taking into account each and every share transaction. The model electronically tracks the number of shares traded (adjusted for free float) at the KSE along with their respective prices, to find out the exact movement of investors' money. The investors place their funds world wide in other than safe-haven stocks when they are confident of the prevailing economic and political situation. On the other hand, when they are not so confident of the economic and political developments, they transfer their funds from those comparatively risky items to the safe-havens. This phenomenon is the foundation stone of this Confidence Barometer.
-- M. Bilal Aftab

CORP CORNER