Hifsa Raja

Pakistan Stock Exchange (PSX) is launching new initiatives to improve financial literacy of investors. “PSX is promoting financial literacy and raising awareness of the significance of international acquisitions as strategic investors have a chance to invest in these acquisitions. Financial literacy is important since it supports the expansion of capital market,” said Abbas Ali Raza, chief executive officer of Ahsam Securities Private Limited, during an exclusive interview with WealthPK.

WealthPK: What initiatives is PSX taking to raise financial literacy and attract investors?

Abbas Ali Raza: The PSX commenced the World Investor Week with a gong ceremony held at the exchange’s Trading Hall in Karachi. The weeklong events were designed to raise investor education and protection while also highlighting the value of financial literacy, promoting financial inclusion and providing investors with learning opportunities.

WealthPK: Do you think that lack of financial literacy is a challenge for Pakistan?

Abbas Ali Raza: Pakistan's financial penetration and diversification present a challenge and limit the country's prospects for saving and investing due to lack of financial literacy and investor education. In Pakistan, the need for investor education is obvious, but it has to be targeted and strengthened through public sector policies and private sector activity.

WealthPK: What are the factors holding back the development of the capital market?

Abbas Ali Raza: The lack of financial education and knowledge in Pakistan is a major cause of concern. Lack of understanding of long-term investments, choice of adequate and diverse products, investment possibilities, and stock market attitudes are all preventing the development of the capital market.

WealthPK: What is the biggest acquisition that has taken place in the PSX?

Abbas Ali Raza: Acquisition of Cloudways by Digital Ocean was the biggest acquisition by value of a Pakistani software firm by an international entity.

WealthPK: Does this acquisition represent a business opportunity for investors?

Abbas Ali Raza: This acquisition by Digital Ocean of Cloudways is a testament to the fact that Pakistani tech companies present a compelling business opportunity for strategic and portfolio investors.

Performance of Ahsam Securities Private Limited in 2021

During the calendar year 2021, the company generated zero brokerage and commission due to some managerial issues compared to brokerage and commission of Rs2.2 million in 2020. In CY21, the company generated an operating profit of Rs6.5 million compared to an operating profit of Rs2.7 million in CY20, showing a growth of 133% year-on-year.

In CY21, the company generated Rs6.5 million in profit before taxation compared to Rs2.7 million in CY20, showing an increase of 134%. Similarly, in CY21, the company’s after-tax profit stood at Rs6 million compared to Rs2.3 million in CY20, showing an increase of 158%.

Ahsam Securities Private Limited was incorporated on September 24, 2012, under the Companies Ordinance 1984. The main business of the company is to assist, regulate or control the business of buying, selling securities, facilitating public securities, and initiating activities in relation to the stock exchange and money market.

Credit : Independent News Pakistan-WealthPk