LAHORE - Economic revival in the country offers a great opportunity to the investors as the equities at Karachi Stock Exchange are being traded at 50 per cent lesser rates while the corporate sector results are encouraging and profit to equity ratios are also on the rise. This was stated by Chairman National Investment Trust (NIT) Tariq Iqbal Khan in his address in a road show on 'Capital Market Investment jointly organised by NIT and Central Depository Co (CDC) at a local hotel on Saturday. He said Pakistan market offers one of the highest dividend yields of seven percent for this fiscal year. Returns in the capital market are closely linked to the economic perception of the country and stock markets sometime over react to slightest threat to the economy. He said that the decline in stock markets during past 16 months was not exactly in line with the economic down slide. Earlier while briefing the audience about CDCs initiative to organise such events Bashir Jan Mohammad, Chairman CDC said that investment in stock market would be very rewarding in the current reviving economy and the purpose of such road shows is to appraise potential investors about the benefits and risks of the investment in capital market and to remove misconceptions associated with stock market investments. He said that there is dire need of increasing the levels of awareness in common and small investors so that they can not only enhance their earnings but also play a vital role in stabilizing the capital markets. Chairman NIT said that KSE provided investors average yearly return of 21 per cent during the decade 1999-2009 while the average inflation during this period was 7.2pc. He said market capitalization of 19 percent of the GDP is much lower than its peak of 32 per cent of GDP in 2008. He said foreign portfolio investors have realised this opportunity and has committed $225m in 1Q of this fiscal compared with outflows of $171m during corresponding period last year. He said major risks to the equity market are raise in oil and commodity rates. He said apprehensions about possible increase in budget and trade deficit and return of high inflation are also some risk factors along with political uncertainty, deteriorating law and order situation, energy shortage, corporate circular debt and other risks. However, he added, Pakistans emerging debt market offers lucrative opportunities for the investors. Currently the bond market in Pakistan is only 7 percent of its GDP compared with global average of 109 percent of GDP that shows the great potential in this regard. He said introduction of bond trading terminal by the end of 2009 will provide liquidity and depth to the bond market. He cautioned that debt market is not averse to risks like liquidity, investment and price risks while credit, inflation and regulatory risks can not be ruled out as well. The event included speeches and presentations by eminent speakers from the Capital Market on the topics of Risks and Opportunities in the Capital Market and the role of Depository.