CAPITAL MARKETS AROUND THE WORLD PERFORMED AT PEAK 2007
INTERVIEW: ALI USMAN CH. CHIEF EXECUTIVE ALI USMAN STOCK BROKERAGE — A LEADING BROKERAGE HOUSE OF LAHORE
Sep 03 - 09, 2007
Currently, the capital market in Pakistan is experiencing extreme volatile conditions resulting in sharp swings. In order to take stock of the situation in Lahore, the capital of Punjab Pakistan & Gulf Economist interviewed the Chief Executive of Ali Usman Stock Brokerage (pvt) Ltd. Lahore Ali Usman Ch. Ali Usman carries a thirteen years of experience in capital markets to his professional credit. He is a dynamic, youthful and smart Businessman. He is supported by his professionally strong directors including Qasim Zia (former Olympian and Current MPA) Raza Zahid (Owner Siza Pharmaceutical Pvt. Ltd.) and Mrs. Khalida Anwer (Real State Business )
PAGE: As a professional and a prestigious brokerage house how do you see the present situation, is it due to political conditions at home front or it has something with the international phenomenon?
ALI USMAN: Capital Markets around the world seen their highest levels in 2007 based upon economic growth and significant growth in earnings of Blue chip companies, Pakistan as an important Asian emerging market also seen rapid and consistent growth throughout the fiscal year 2006-07. Recent decline in Pakistan Capital Market, in my opinion was primarily due to the profit taking just like we seen in major indices all across the globe and secondly due to the uncertain political conditions within Pakistan.
PAGE: Would you like to comment on investors' behavior over the persisting conditions?
ALI USMAN: Local investor in Pakistan is showing an interest in Portfolio investment for medium to long term and now realizes the advantages of investing in Blue chip companies that are distributing their Profits to their shareholders in shape of Dividends, Bonuses and right shares. The current sharp swings in the market makes CFS investor panic and hence we see sharp sell-offs after any bad news whether its related to political instability, terrorism or foreign statements regarding Pakistan Govt. not doing enough to control extremists within our country. This also makes foreign investor less interested in our market and hence we see more supply then demand and results in heavy losses to our economy. In short, local investor's behavior over the current conditions is based upon external factors and news rather than based on economic fundamentals and numbers.
PAGE: Lahore as the capital of Punjab is gradually growing as a place of doing business. Domestic investment as well as foreign investment is visibly on the rise in Punjab, however it does not reflect truly in capitalization at the stock market of Lahore? Your comments?
ALI USMAN: Lahore is home to one of the major markets in commodities and a heaven for traders in agriculture produce, leather tanneries and textile product. Lahore is expanding and infrastructure development is on the rise, which is making it attractive for both local and foreign investor. Punjab has always been a major contributor to the GDP growth of Pakistan mainly due to its agricultural importance. Industries are flourishing and with the addition of "Sundar Industrial Estate" in Punjab the province is changing its old look from an agricultural region to a new industrial paradise. Capital Market investment is also booming and we have seen great awareness among the residents to become a part of this growing economy by investing in its companies.
PAGE: Would you like to highlight the performance of your company during the last two three years and how do you fore see the future of Lahore Stock Exchange in terms of investment?
ALI USMAN: We established our company in June 2006 and since then we have seen great interest among local investor towards the Stock Market. I hope that demutualization of the Bourses in Pakistan will further expand our business in future. Our portfolio along with our clients has seen some major growth in the past fiscal year, as it was one of the best years in Pakistan Economy as well.
PAGE: Punjab is the largest province in terms of population as well as industrial and economic activities but it does not translate in terms of capitalization in Lahore Stock Exchange, what steps you would suggest to create awareness among the potential investors towards investment in equity market?
ALI USMAN: As you know there is more number of shares traded in KSE as compared to LSE which one main reason of less volume, less liquidity and hence less interest in investor towards equity market. Comparatively from previous years, we have seen a big difference in Capitalization in LSE although there is still a big gap to fill and a great potential in future. Here in Lahore Stock Exchange we also lack trading in future contracts, which restricts Lahorites to many other possibilities available for Karachi Stock Exchange Investor.
About company: Ali Usman Stock Brokerage (Pvt.) Ltd. is one of the leading stock brokerage companies in PAKISTAN. The Ali Usman Stock Brokerage (pvt.) Ltd. with its sound financial base and support of a very professional Board is in the position to render various financial services desired by industry and individuals alike. Ali Usman Stock Brokerage (pvt.) Ltd. has its main office in Lahore and planning to have its franchisees all over Pakistan.
We will always be totally honest with you. Every company has its own way of charging to set up and manage investments, for brokerage and each naturally wants to present itself in the best light. Some focus on initial charges, others on annual fees, but it is the overall combination that matters.
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Ali Usman Stock Brokerage (pvt.) Professionals having a rich experience in the financial service sector promoted Ltd. in 2006. The core management team comprised of chartered accountants, MBAs and law professionals. In short, a team that is a synergy of the enthusiasm of youth and the wisdom of experience. Our years of experience have taught us the value of being a reputable company that takes your investments and financial decisions as seriously as you do.
Ali Usman Stock Brokerage (pvt.) Ltd. with its sound financial base and support of a very professional Board is in the position to render various financial services desired by industry and individuals alike. Ali Usman Stock Brokerage (pvt.) Ltd. has its main office in Lahore and planning to have its franchisees all over Pakistan.