Geojit to open jt. venture stock brokerage firm in Saudi

Kochi, May 19: Geojit Financial Services Ltd, which recorded its highest turnover of Rs 101.79 crore in 2005-06, has announced plans to start a joint venture stock brokerage firm in Saudi Arabia.

Addressing a press conference here last night, Geojit Managing Director C J George said that the membership formalities with the Saudi stock exchange were being completed and the firm should be operational in Riyadh within three months.

The venture was intended as a pan-GCC operation and the company was targeting to open 15 branches in two years' time, he added.

Geojit would have a 30 per cent stake in the joint venture, which will have a paid up capital of 100 million Riyal. The other shareholders would be from Saudia Arabia, UAE, Bahrain and Oman, he said without disclosing further details.

Mr George said that the Saudi stock exchange had a daily turnover of 10 million US Dollars.

Regarding the sharp downfall of over 800 points in the sensex yesterday, Mr George said that the market has been ''overheated'' and a small trigger was enough to lead to a slide.

Expecting the volatility to continue for some time, he said that the market could shed upto 2000 points. However, there was no cause for concern as these were ''short term corrections''.

''The basic fundamentals of the Indian economy were strong and I continue to be very bullish about the stock market,'' he added.

Regarding Geojit's performance last year, company Director A P Kurien said that the company had seen a 118 per cent increase in its net profit at Rs 22.71 crore.

Geojit was managing Rs 5000 crore worth of assets for nearly 300,000 clients.

Branch expansion, technology and new products were among the factors contributing to Geojit's performance, he added.

Chief of human resources department Jaya Jacob Alexander said that the all-women branch of the company, meant for only women clients, had also done well and had broken even in just six months' time. Nearly 250 women investors had registered with it, she added.

UNI