Pak­istani stock mar­kets gen­er­at­ing more prof­its

The Pak Banker - - NATIONAL - Ja­hangir Hayat

LA­HORE: Pak­istani stock mar­kets are gen­er­at­ing prof­its more than any other stock mar­ket of the world thus prov­ing at­trac­tive for the in­vestors from around the globe.

Se­cu­ri­ties and Ex­change Com­mis­sion of Pak­istan (SECP) has made buy­ing and selling of shares very trans­par­ent abol­ish­ing sale and pur­chase of fake shares, short selling and in-house badla sys­tem, the La­hore Stock Ex­change Man­ag­ing Di­rec­tor Aftab Ah­mad Chaudhry ex­pressed these views while speak­ing at a lun­cheon re­cep­tion hosted in hon­our of the La­hore Eco­nomic Jour­nal­ists As­so­ci­a­tion (LEJA) here on Mon­day.

La­hore Stock Ex­change (LSE) has started var­i­ous pro­grammes for pro­tec­tion of the in­vestors and pro­mot­ing in­vest­ment in the stocks. At present 431 com­pa­nies are reg­is­tered with the LSE while 8 IPOs were ar­ranged dur­ing 2014-15 which ben­e­fit­ted small in­vestors a lot. He claimed that the stock mar­ket of Pak­istan gave re­turns to its in­vestors more than any other re­gional stock mar­ket. Ac­tiv­ity was seen in ce­ment, au­to­mo­bile, elec­tron­ics, foods and var­i­ous other sec­tors.

Re­ply­ing

to a query, Aftab Ah­mad Chaudhry said that Moody's In­ter­na­tional Credit Rat­ing Agency had im­proved the credit rat­ing of Pak­istan be­cause of the eco­nomic poli­cies of the sit­ting gov­ern­ment which en­hanced the con­fi­dence of the in­ter­na­tional fi­nan­cial in­sti­tu­tions on Pak­istan which also im­proved the stock mar­kets. He said in­dex of Karachi Stock Ex­change has crossed 35,000 points while one year back it was around 32,000. He said that in­fla­tion was low­est in Pak­istan as com­pared to its neigh­bours, for­eign ex­change re­serves and crossed the US 17 bil­lion dol­lars mark, for­eign pay­ments had im­proved while for­eign in­vest­ment was also in­creas­ing. He said that the Pak-China Eco­nomic Cor­ri­dor would also bring for­eign in­vest­ment in Pak­istan which would strengthen the lo­cal in­dus­tries and econ­omy thus lead­ing more im­proved per­for­mance in the stock mar­kets. LSE Man­ag­ing Di­rec­tor called upon the com­pa­nies to sell their share through the stock ex­change as it was per­form­ing bet­ter than the banks. He said that Karachi Stock mar­ket was the lead­ing per­former in the emerg­ing mar­kets and fu­ture is brighter. He urged the in­vestors to thor­oughly check the bro­kers' de­tails be­fore open­ing their ac­count and in­vest on solid grounds in­stead of ru­mours.

Quot­ing Jim O'Neill, he said the Pak­istan GDP is ex­pected to in­crease from US $375 bil­lion to $500 bil­lion by 2020 whereas Pak­istan can be­come world's 18th largest econ­omy by 2050 with a GDP of US$ 3.33 tril­lion as Pak­istan econ­omy would grow 15 times in the next 35 years.

About the mar­ket sta­tis­tics, Aftab Chaudhry said the mar­ket cap­i­tal­iza­tion stood at Rs 7696.67 bil­lion on July 30, 2015. About the top per­form­ers, he said the soft­ware com­puter ser­vices posted the high­est cu­mu­la­tive stock re­turn at 250 per­cent in 2014-15 against only 2 per­cent in 2013-14 fol­lowed by au­to­mo­biles 93 per­cent, elec­tric­ity 63 per­cent, life in­sur­ance 62 per­cent, media 48 per­cent and ce­ment 45 per­cent. He fur­ther said that net for­eign port­fo­lio in­vest­ment stood at US $47 mil­lion in 2014-15 against a mea­ger $1 mil­lion in last fi­nan­cial year while Pak­istani eq­ui­ties have de­liv­ered 26 per­cent a year to US dol­lar in­vestors since 2009.

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