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China’s investment and upcoming strategic alliances help boost PSX growth and Pakistan image

Interview with Mr Ahmed Chinoy – Director, Pakistan Stock Exchange

Profile

Mr Ahmed Chinoy is a businessman by profession and social activist by nature. Being in profession for over 25 years with a vast experience and knowledge, he is associated with the security investments and textile industry since the beginning of his career. Today, his business along with his family has diversified into more categories that are Real Estate Development, Project Management and Controlled Poultry Farms. He has served as the CPLC Chief for over 7 years and is associated with multiple NGOs working for the betterment of the country in different fields such as health, law and order situation, education and other departments. This work has led him to be the recipient of two highly prestigious National Awards: Sitara-e- Imtiaz and Hilal-e-Imtiaz. He was also elected as the Director of Pakistan Stock Exchange in the year 2016 and since then he has been involved in many strategic decisions for the economic betterment of the country.

PAGE: WHAT WOULD BE THE ROLE OF BROKERAGE HOUSES IN FUTURE AND HOW WOULD THEY CONTRIBUTE IN PSX?

AHMED CHINOY: Due to the foreign strategic investment, I believe the cement sector will most likely benefit the most due to the increased spending on infrastructure for power projects, roads, highways and motorways and several private sector construction and housing projects.

Cement sector was also in the limelight in 2016 due to the increased domestic demand and low energy charges. Oil and Gas Marketing (OMCs) also posted strong returns by 61 percent driven by strong oil sales.

Analysts expect OMCs to remain in limelight in 2017 on the back of rising auto sales and increased oil demand. The overweight targets on cements, consumers, autos, oil & gas marketing, and steel sectors for the next calendar year make these sectors be the prime beneficiaries of rising domestic demand and expansion activities led by Chinese investments in 2017.

PAGE: YOUR VIEWS ON CHINESE INVESTMENT IN PAKISTAN STOCK EXCHANGE:

AHMED CHINOY: I believe it’s a very big and positive step towards the economic development of our country. The divestment and arrival of Chinese investors brings about an ideal partnership for development of the capital market. This investment will help increase the economic and financial collaboration between China and Pakistan and the China-Pakistan Economic Corridor.

The value of the transaction is calculated at Rs8.96 billion ($85 million) which is a huge investment. These type of strategic alliances help create a positive image of the country and motivate investors to see Pakistan as a great option for investment purposes. This investment has led to more foreigners coming into Pakistan spreading a message of love and peace around the world. Also, we anticipate that this alliance will help bring in experience, technological assistance and new products in near future.

PAGE: WHERE DO YOU SEE PSX MOVING IN NEXT COUPLE OF YEARS?

AHMED CHINOY: With Chinese investments making a huge impact in the market and Gwadar being officially declared as an international port opening the gateways for trade, I foresee many other countries coming forward and making investments in Pakistan.

Pakistan as a market has huge opportunities, which are unfortunately not identified. The potential that Pakistani markets carry is way far much more than what other countries have. What we needed initially was a major step to enhance investments. Now that the Chinese have invested, this is the moment for big investors around the world to capitalize.

With other investments coming up in the following years, I see Pakistan as the economic hub for many countries around the world. This hub would eventually help the PSX grow at a higher level and compete with the top best stock markets around the globe.

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