ISLAMABAD: The last fiscal year was a challenging period for the financial markets as they opened with a steady decline, acording to the 2019 Annual Report of the Securities and Exchange Commision of Pakistan published on Friday.

The KSE-100 index began the year at 41,910.90 and ended at 33,901.58 on Jun 28, 2019, recording a decrease of almost 19 per cent over the period.

The market touched its lowest level at 32,354.06 on May 20, 2019, and recorded peak of 43,638.77 on July 31, 2018.

During the year, average daily turnover was 155.205 million shares and 36.8m in ready and futures market, respectively.

A total of 544 companies with accumulated paid- up capital of Rs1,340.2698 billion were listed on the exchange as of June 30, 2019 with a market capitalisation of Rs6,887.301bn, reflecting an approximately 21pc decline in the latter.

Foreign investment exhibited a net outflow of $355.953m during the year, depicting a 26pc year-on-year fall, the SECP said.

In 2018-19, new capital of Rs10.161bn has been listed on the PSX as compared to Rs5.015bn in the previous fiscal year.

M/s Interloop Ltd raised Rs5.02bn from the market making it the largest ever private sector initial public offering, the regulator noted.

The SECP incorporated 14,461 new companies in FY19, 27pc higher year-on-year. Of this figure, approximately 73pc were private limited companies, 24pc as single member and 3pc as public companies, not-for-profit associations, trade organisations, foreign companies or limited liability partnerships. This took the total number of registered entities to 101,328 as of June 30, 2019.

According to the regulator, it issued 53 licences during the period to not-for-profit associations under Section 42 of the Companies Act, 2017, with objects of arts, sports, social services, charity etc.

Besides, licences of 13 not-for-profit associations have been renewed, while those of 35 not-for-profits were revoked due to non-compliance.

The asset size of the non-banking financial sector stood at Rs1,140bn on Jun 30, 2019, as compared to Rs1,228bn the year before, reflecting an overall decrease of 7.15pc. Of this, Shariah-compliant assets were Rs340.03bn, representing 29.9pc of the entire sector.

Total asset size of mutual funds stood at Rs577.64bn of which Shariah-compliant instruments accounted for 39pc.

Since 2010, growth of Shariah compliant mutual funds is 892.59pc as compared to 64.11pc for conventional ones. Asset size of pension funds was Rs26.498bn of Shariah-compliant made up 64pc,.

Takaful’s share in the overall insurance market is also increasing each year. In 2016, share of takaful in terms of gross premium was 6.9 percent of the total industry premium, compared to 10.22 percent in the year 2018.

Of the 542 companies listed on PSX, around 250 are Shariah compliant, which is 46pc of the total.

As of Dec 31, 2018, in corporate debt market, the total value of outstanding sukuk was Rs498bn, accounting for 77pc of the aggregate, the SECP added.

Published in Dawn, February 29th, 2020