Pakistan Stock Exchange has seen many highs and lows in 2021. According to the reports for 2021, May 2021 has seen the highest profit. The last year has seen remarkable progress in terms of investments. The government is also lenient in terms of revenue which has led to a positive attitude of the market towards the KSE-100 index.
Pakistan Stock Exchange Market was established in 2016 after the merger of Islamabad, Lahore, and Karachi stock markets. The merger was meant to attract strategic partnerships and open up Pakistan for the global markets.
Currently, China Finacial Futures Exchange (17%), Shanghai Stock Exchange (8%), Shenzhen Stock exchange (5%), Pak China Investor Company (5%), Habib Bank Limited (5%), and Local and Foreign Investors (60%) have shares in the stock exchange.
Growth Enterprise Market (GEM) board was launched in 2021. It is a separate window established for the new growing companies who carried high investment. A lot of factors contribute to the stock market. FBR had exceeded its revenue collection target in three consecutive months. The finance ministry had introduced the stimulus package to support the economy, which has added to the positive outlook of the stock market. According to Fitch, “Official FX reserves (excluding gold) will reach US$ 17.4 billion (3.2 months of current external payments; 2021 B median: 4.7 months) by the end of the fiscal year to June 2021 (FY21) from US$ 13.3 billion at FYE20.” They gave Pakistan a B- rating with a Stable Outlook. Such things contribute to economic progress.
2021 a year of progress
2021 has been a year of improvement as compared to 2020 and 2019. The increased inflow of money into the economy has reassured the investors to invest and show trust and confidence. This is an improvement over FY20 and FY19, where the current account showed a deficit of 2.4 and 4.8 percent of GDP, respectively. This increase in the inflow of money into the economy is a reassuring factor for the investors in the market. Pakistan Stock Exchange has also witnessed record trading in the last ten years. According to the Securities & Exchange Commission of Pakistan (SECP), the profit for the first nine months was the highest as compared to the last ten years (59%). The profitability growth year on year basis was 62%. The profit for 2018-2020 was worth Rs. 163 billion whereas in 2021 it was worth Rs. 252 billion, a 55 % increase.
Pakistan has taken a safe flight during the third and fourth waves of the pandemic. There was an investment in government bonds, and Roshan digital accounts increased. This was a welcome sign for the investors.
#RoshanDigitalAccount achieves 3 more milestones. Over 300,000 accounts opened, deposits cross $3bn and investments in #NayaPakistanCertificates rise above $2bn in just 16 months. Grateful to our Overseas Pakistanis & banks for these remarkable results. https://t.co/vOxEvdpNTP pic.twitter.com/sTduZBD31Y
— SBP (@StateBank_Pak) January 7, 2022
In January 2021, there were 443 companies with a worth of Rs. 8,736 billion. May 2021 has been termed as “a month of all-time high volumes”. It was the highest point in PSE in 2021. There were 2.20 billion shares as compared to 1.56 billion shares in May 2020. According to Topline Security, there were 774 million shares per day against 206 million shares per day in May 2020. It was an increase from 118.6 % to 276.7%. The KSE-100 index saw an increase of 8.1%.
PSE the ‘Most Profitable Market’
Fawad Chaudhry said that Pakistan Stock Market was the most profitable market amongst the world’s market. The companies paid Rs. 272 billion in 2020, whereas profit surged to Rs. 498 billion in 2021.
— Ch Fawad Hussain (@fawadchaudhry) January 7, 2022
He also mentioned the companies that have shown progress in the last two years.
یہ فہرست دیکھیں پاکستان کی اسٹاک مارکیٹ دنیا میں 18فیصد منافع کے ساتھ سب سے منافع بخش اسٹاک مارکیٹ رہی ان کمپنیوں نے2020 میں 272ارب روپیہ اپنے شہر ہولڈرز کو دیا اور 2021 میں یہ منافع 498 ارب روپیہ ہے pic.twitter.com/ps5TTeV1il
— Ch Fawad Hussain (@fawadchaudhry) January 5, 2022
The trends in 2022 look promising for the economy. We hope that there is progress in the stock market and we provide a safe environment for foreign investors to earn their trust and confidence. As we have seen massive growth in exports from Pakistan to the US and other countries. We hope for the same in all sectors of the Pakistani Industry.