PROFILE:
Azam Khan is a well reputed and recognized name in capital markets of Pakistan. His vision and leadership always proved to be exceptional. He has constantly proved his expertise and intelligence.
Sunrise Capital, under his guideline is contributing finest administrative, operational, research, sales and marketing objectives in the financial world. He started his professional career with international exposure at Mashreq Bank Dubai in a highly professional environment with dedication and commitment.
Subsequently, contributed his skills in the growth and development of Atlas Capital, professionally. Furthermore, he enjoyed rendering his abilities as Chief Operating Officer at Standard Capital Securities and brought in structural reforms in the institutions and succeeded comfortably with effective exit strategy before the financial crunch of capital market in 2008.
Under the guidelines and far sighted vision of Mr. Azam, Sunrise Capital developed a complete brand equipped with diversified expertise of human resource working passionately in his group of companies.
Q.No.01: Kindly
tell me about yourself and your career?
Ans:
AZAM KHAN is a well reputed and recognized name in
capital markets of Pakistan. His Vision and leadership always proved to
be exceptional. He has constantly proved his expertise and intelligence.
Sunrise Capital, under his guideline is
contributing finest administrative, operational, research, sales &
marketing objectives in the financial world. He started his professional career
with international exposure at Mashreq Bank, Dubai in a highly professional
environment with dedication and commitment. Subsequently, contributed his
skills in the growth and development of Atlas Capital professionally.
Furthermore he enjoyed rendering
his abilities as Chief Operating Officer at Standard Capital Securities and
bring in structural reforms in the institutions and succeeded comfortably with
effective exit strategy before the financial crunch of capital market in 2008.
Under the guidelines and for sighted vision of Mr. Azam, developed sunrise a
complete brand equipped with diversified expertise of human resource working
passionately in his group of companies.
Q.No.02:
Your views on Pakistan Stock Exchange?
The Pakistan Stock Exchange (PSX)
100-Index is the best-performing stock market in the world and built the belief
of foreign investors &local investors. Pakistan Stock Exchange—has stood
out in recent years, despite a troubled political and security environment. The
year 2016 proved to be a year of escalation and enthusiasm for the capital
market as, PSX-100 index gained 8,035 points till date as compared to same
period last year and generated a handsome return of 24%. While, 2015 is a hit
to the continuous stellar performance of PSX-100 index over past years as
PSX-100 Index registered meager increase of 2.1%. In 2015, PSX benchmark-100
index increased by only 678 points and closed at 32,816 points. During the
period, Foreign Investors stealing the show as outflow of $ 94 million
witnessed in 2016 till date, instead of outflow of $ 315.2 million in 2015.
PSX 100-index has crossed 41,688 points
in Oct-16. Index turns out to be achievable because the SECP, The Securities
and Exchange Commission of Pakistan have taken a definite escort, in
strengthening the regulatory framework that protects investor’s interest. It is
also launching initiatives to widen the reach of the capital market investment
products to savers across the nation. The Securities and Exchange Commission of
Pakistan (SECP) is an eccentric institution: it is concurrently the chief
regulator and the primary promoter of the development of Pakistani financial
markets. It is our confidence that SECP would continue to strengthen its
regulatory framework further and play its role in ridding the society of the
curse of corruption. Moreover, SECP strict regulation attracted foreign
investors and eventually raises the international inflow.
Moreover the Chinese have announced large
investments in the country. When China’s $46-billion investment to build a
China-Pakistan Economic Corridor actually happens, it will boost trade and make
critical infrastructure, such as power, easily available to individuals and
industries alike.
Q.No.03: How
would you comment on the need of new products in Pakistan Stock Exchange?
I believe that for further development of
Pakistan Stock Exchange, Management should introduce more products according to
regional market as soon as possible, as, it is hard to survive in T+2, Future,
MTS and Borrowing from banks in especially selective stocks. PSX
regulators should provide leverage window to TREC holders to enhance volume and
build the confidence of stock brokers for expansion decision. In the precedent
instance, PSX provides PKR 10 million intraday exposure to all TREC holders but
now, we don’t have such facility. Hence, PSX regulator should focus on such
issues and provide the reliable solution for the growth of the industry. It is
necessary to conduct road shows locally in across the nation. Although, we had
done countless road shows throughout the world but never focused on local
investor and never recognize the strength of our people and their investments.
Q.No.04 : Your
views on investment by foreigners in PSX?
Foreign investors were net
sellers of USD 281mn in FY16. In ongoing Fiscal year Foreign investors
were net sellers of USD 53mn in FY17 till date and USD 94mn in Calendar
Year till date.
U already Knows that the
American stock index firm MSCI included the KSE 100 in its emerging markets
index, which represents 10% of the world’s market capitalization. MSCI said
that Pakistan Index will be reclassified to the Emerging Markets status,
coinciding with the May 2017 Semi-Annual Index Review. MSCI decision is to
upgrade the country from the Frontier Markets status is expected to generate
inflows of global portfolio investment by the middle of 2017. Although the
actual reclassification of the index will follow next year, global investors
tend to start factoring in the reclassification ahead of the actual change,
which prompts massive inflows of global funds in the case of a favorable
decision.
A reclassification of MSCI
Pakistan Index from the current MSCI FM Index to MSCI EM Index result in the
following:
·
Weight
of Pakistan in MSCI Index is currently as follows ‐ MSCI FM Index @ 8.7% and
MSCI FM Small Cap Index @ 8.5%.
·
This
is expected to drop once Pakistan is elevated to the status of MSCI EM Index
with weight dropping to @ 0.19%.
However, since funds tracking
Emerging Markets are much bigger hence market pundits expect a net incremental
inflow of around US$250mn if Pakistan’s status is elevated to MSCI EM Index;
Number of constituents would decrease from 16 to 9 as given in the table. A
possible status upgrade, coupled with incremental inflow of FIPI and hence rising
liquidity could lead to a re‐rating in Pakistan’s equities.
Q.No.05: What is your take on the markets in the neighbouring
countries?
Pakistan Stock Exchange is
far ahead (compared to peers) in terms various performance indicators i-e
valuations, dividend yield, corporate profitability; and has traditionally been
traded at a discount to regional and emerging markets. This discount was
attributable to lower growth trajectory and higher political and security risk.
In 2016, Pakistan’s benchmark equity index, the KSE 100, has been one of Asia’s
best performing. In fact, it is the fifth-best performing stock index globally.
Bloomberg even referred to Pakistan as an Asian “tiger,” in a report.
KSE-100 when compares with another index: Since the beginning of 2016,
till Oct, India’s S&P 100 index has gained 7.4%, and Shanghai Se Composite Index has gained 8%, while
KSE-100 index is up almost 24.5%.
PAGE: YOUR VIEWS ON RETAIL INVESTORS:
AZAM KHAN: Unfortunately, we did see a major confidence of retail investors towards Pakistan stock market after 2008 global financial crises and the main reason was lock down of the Pakistan capital market for almost around 110 days after crises to facilitate others and provide guarantee to IMF at 9400 index levels with almost $55 billion market capitalization to avail further loans.
Sunrise Capital working day and night to boost retail confidence in Pakistan and provide them all related secured tools to invest in PSX.
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