KARACHI: During the fiscal year 2021, despite a downturn in global equity markets, the government’s pro-growth policies helped Pakistan’s capital market withstand the pressure.
Global capital markets which plummeted in March 2020, rebounded when governments around the globe injected big stimulus money into their economies.
The Pakistan Stock Exchange (PSX) also successfully powered through the initial COVID-19 induced economic downturn and earned the title of being the ‘best Asian stock market and fourth best-performing market across the world in 2020’, according to the economic survey issued on Thursday.
During July-May FY2021, the benchmark KSE-100 index improved from 34,889 points to 47,896 points, gaining 13,006 points in the said period. As of May 31, 2021, the total market capitalisation of the Pakistan Stock Exchange was Rs 8,267 billion.
An increase of 26.6 percent was witnessed in market capitalisation, compared with the June 30, 2020 market capitalisation of Rs 6,529 billion.
Though the third wave of COVID-19 dragged the KSE-100 index down in March and April of FY2021, reforms introduced by the SECP and the government’s pro-growth policies are helping the capital market to withstand the pressure.
The distinguishing feature of this year is the significant number of IPOs that took place. Despite the COVID-19 outbreak, Pakistan Stock Exchange witnessed five IPOs between July 2020 and March 2021.
These five are The Organic Meat Company, TPL Trakker, Agha Steel Industries, Engro Polymer & Chemicals Limited and Panther Tyres Limited. During July-March FY2021, corporations raised Rs 96.9 billion by issuing seventeen debt securities. While 93 previous corporate debt securities worth Rs 782.875 billion remain outstanding.