KARACHI: Seasoned businessman Hussain Dawood has said that the Pakistan Stock Exchange (PSX) has to play a greater role in building the nation and domestic economy through maximising the number of investors in the market.
To achieve the objective, he underscored the need for building a meaningful public-private partnership where the government should frame favourable policies and the private sector would help implement them for the greater benefit of the entire nation.
“The stock exchange is not for making money, it is for creating money,” he remarked. Dawood, Board Chairman of Dawood Hercules Corporation and Engro Corporation, was speaking at the PSX after ringing the trading session’s opening bell on Wednesday.
PSX invited him as part of a programme designed to recognise the efforts and contributions of leading business figures, who played an important role in developing the capital market, business activities and economy of the country. Dawood was the first that got the honour from the PSX.
He was accompanied by high officials of the eight listed companies under his conglomerate including Dawood Hercules, Engro Corporation, Engro Fertilisers, Engro Foods, Engro Powergen Qadirpur Limited, Engro Polymer, Dawood Lawrencepur and Cyan Limited.
“We should endeavour to make the stock exchange an important part of bringing the nation together, in seeing progress by having more people come and participate and help in the growth of the economy for the benefit of all.”
After beating the gong, a meeting took place between a PSX team, Dawood and his team. Matters relating to Pakistan’s economy, business environment and the capital market were discussed.
Dawood said regulations and policy formulations should be conducive to increasing business activity. They should help increase the number of listings and be framed in such a way that companies listed or those to be listed did not feel encumbered, he suggested.
“It is the role of the government to prepare proper regulations and policies and it is the role of the business community to implement these regulations and policies,” he elaborated.
Dawood emphasised that the government and business community should work hand in hand to help achieve economic growth and prosperity in the country.
PSX turns in profit
The PSX managed to turn around and made a profit in the quarter ended December 31, 2018 due to receipt of higher income from company listings and trading operations, and a tax rebate.
PSX posted a profit of Rs60.30 million in the second quarter (Oct-Dec) of financial year 2018-19 compared to a loss of Rs8.41 million in the same quarter of previous year, according to an announcement made on Wednesday.
It booked earnings per share of Rs0.03 in Oct-Dec FY19 compared to loss per share of Rs0.01. PSX’s share price dropped almost 1%, or Rs0.14, and closed at Rs14.26 with trading in 49,000 shares at the exchange.
Its revenue – including listing fee, income from exchange operations and interest income – surged 25% to Rs248.81 million in the second quarter of FY19 compared to Rs199.72 million last year.
It received a tax rebate of Rs24.17 million in the Oct-Dec quarter compared to payment of Rs28.87 million in taxes in the same quarter of previous year. Cumulatively, in first half (Jul-Dec 2018) of FY19, the PSX recorded a profit of Rs51.88 million (EPS Rs0.05) compared to Rs71.21 million (EPS Rs0.03 million) in the same half of previous year.
Published in The Express Tribune, February 21st, 2019.