Hifsa Raja

Though the continuing political unrest has shaken investors' faith in the market, a rebound is always likely, and there are always investing opportunities even when the market is at its lowest point as with some risk-taking investors, who are still jumping into the fray. This was stated by Asjed Riaz, a trader at Riaz Ahmed Securities Private Limited.

WealthPK: When should an investor put his money in stocks?

Asjed Riaz: Though political unrest has dampened investors' confidence in the market, there are always investment opportunities. We suggest that investors buy when the market is at its lowest point. They should always invest in equities when there is a price drop. This is the time for investors to find out the best stocks with good returns.

There is always a chance to invest in the stock market because, based on current attitudes, a rebound is anticipated sooner than later. An investor should purchase shares in profitable companies that pay out bigger dividends.

WealthPK: What is the performance of the market post-Covid-19? How much time will this recovery phase take?

Asjed Riaz: The Pakistan Stock Exchange was trading at about 42,000 points when the Covid-19 pandemic struck around January 2020. The stock market started declining in March 2020, when the lockdown was imposed. Then the market dropped to its lowest point of 27,000 points. When everything was shut and there was no way for people to invest, the stock market was still functioning.

The key reason why so many people invested in the market was because there was no avenue for investment, and stocks were priced at a discount. People consequently began investing in value equities and stocks with high payout ratios. After the Covid-era recovery, the stock market reached the benchmark of 48,000 points. However, afterwards, the stock market has continued to move up and down in cycles.

WealthPK: Do you think there is a chance for a new investor to invest in the market when there is political, economic instability, and when inflation is so high?

Asjed Riaz: When the market is at its lowest, risk-taking investors jump into the fray. Banks also come for purchasing. However, foreign investors are feeling the heat due to low returns. They are in a spot of bother because of continuing political instability and the country’s dwindling foreign exchange reserves.

The company’s performance in 2022

During the calendar year 2022, the company generated an operating revenue of only Rs487,053 compared to a revenue of Rs8 million in 2021, showing a 94% negative growth year-on-year.

In CY22, the company sustained a loss from operations of Rs2.08 million compared to an operating profit of Rs8.08 million in CY21. The company also suffered a loss-before tax of Rs2.3 million in CY22 compared to a profit of Rs8.4 million in CY21. Similarly, in CY22, the company sustained a loss-after-tax of Rs2.3 million compared to a profit-after-tax Rs6.8 million in CY21.

Riaz Ahmed Securities (Pvt) Ltd is one of the well-established and reputed firms registered with the Pakistan Stock Exchange, Islamabad, providing services, including equity brokerage, investment, and financial advisory services, to both domestic and overseas customers. The company was registered in Pakistan as a public limited company on July 1, 2006 under the Companies Ordinance 1984.

Credit: Independent News Pakistan-WealthPk