Hifsa Raja

Foreign investors are not that enthusiastic about making investments in Pakistani stocks at the moment due to continuing economic uncertainty, said Muhammad Naeem, a research analyst at Zafar Securities (Pvt) Limited. He was talking to WealthPK during an exclusive interview.

WealthPK: What has dampened investor sentiment?

Muhammad Naeem: Investors’ confidence has been dampened as there is no clarity in the market.

WealthPK: How the market will become stable?

Muhammad Naeem: There won't be any clarity in the market until the general elections. Due to the ongoing political unrest, the International Monetary Fund, other multilateral creditors and friendly nations are unwilling to extend financial help to Pakistan. The political upheaval will come to an end after a new dispensation is at the helm following the elections.

WealthPK: How will you compare the state of Pakistan Stock Exchange with its regional peers?

Muhammad Naeem: In comparison to China, Bangladesh and India, PSX's fundamentals are highly unsatisfactory at present.

WealthPK: What industries should investors concentrate on in order to make money?

Muhammad Naeem: Oil and gas, commercial banks, and fertiliser are the most appealing industries at present as they are in a strong position and offering competitive rates.

Annual performance of Zafar Securities Private Limited

During the fiscal year 2021-22, the company posted an operational loss of Rs18.83 million compared to an operational profit of Rs88.5 million in fiscal year 2020-21. In FY22, the company’s loss-before-taxation stood at Rs19 million compared to the profit-before-tax of Rs88.4 million in FY21, showing a 121% loss in profit.

The company also posted a loss-after-tax of Rs20.86 million in FY22 compared to a profit of Rs91.15 million in FY21, showing a 123% loss in net profit. The company also sustained a loss per share of Rs10.43 in FY22, compared to earnings per share of Rs45.58 in FY21, showing a 123% decrease in EPS value.

Company profile

According to Muhammad Naeem, a research analyst, Zafar Securities has become the first brokerage house in Pakistan to simultaneously offer its clients two trading platforms – Karachi Stock Exchange trading floor and the Lahore Stock Exchange trading floor. It is also using Artificial Intelligence to enhance the client’s experience and satisfaction with trading activity.

He said that the brokerage firm has served more than 15,000 individuals and institutional clients through various branches in Pakistan. Zafar Securities financial portal brings trading information about KSE-100 index, announcements, gainers and losers, commodities, and the global markets.

Credit : Independent News Pakistan-WealthPk