1. Pakistan Stock Exchange
Role of PSX in providing equity & debt
Presentation by Richard Morin, CEO
March 9, 2019

2. Pakistan Stock Exchange is the national bourse of Pakistan.
PSX at a glance
Pakistan Stock Exchange is the national bourse of Pakistan.
Market capitalization of
PKR 7.69 trillion
546 listed companies
230 active brokers
233,000 retail investors
7 indices
*As on 31st December 2018

3. Diversity of listed companies on PSX
*As on 31st December 2018

4. Historic annualized returns
Rates annualized
PIB 10YR tenure average
T-Bills 6M tenure average
Weighted average deposit rate SBP
Inflation is average

5. Pakistan vs emerging markets
Source : MSCI 31st December, 2018

6. Pakistan vs emerging markets
Source : MSCI 31st December, 2018

7. Investors/Population
PSX vs peers
Country
Market Cap (USD Mn)
Market Cap/GDP
Investors
Investors/Population
Pakistan
55,344
18%
237,000
0.1%
India
4,139,820
159%
32,000,000
2.4%
Vietnam
132,653
54%
2,200,000
2.3%
Indonesia
486,766
48%
1,600,000
0.6%
Malaysia
398,019
115%
2,530,000
7.9%
China
6,324,880
49%
350,000,000
24.6%
Canada
1,937,903
17,400,000
47.0%
USA
30,436,313
152%
175,000,000
53.4%
Source: WFE Statistics, World Bank, PSX Research
Data as of December 31, 2018

8. Economy 70% (?) undocumented
Structural issues
Economy 70% (?) undocumented
Capital sits in informal sector; cannot come to capital markets
Over investment in real estate
Pakistanis priced-out of real estate while companies are starved of capital
National savings scheme
Distortions impede capital market development
Pakistanis miss out on much higher long term returns on stock market
GOP pays extra Rs. 100 bn\year in interest
Economic growth suffers

9. Bond market micro structure
Structural issues
Bond market micro structure
SBP as regulator, issuing agent and clearing agent
Only banks are primary dealers
Lack of transparency
Brokers business model
Clearing and non-clearing; brokers vs family offices\prop-trading houses
Fee for advice; Separately Managed Accounts
Mutual funds platform
In-house margin financing

10. Thank You