Pakistan Stock Exchange Registers 221% Profit Jump in 1HFY24

Pakistan Stock Exchange Registers 221% Profit Jump in 1HFY24

Karachi, February 28, 2024 – In a surprising turn of events, the Pakistan Stock Exchange (PSX) announced a remarkable 221 percent surge in net profit for the first half (July – December) of fiscal year 2023-24, according to the unconsolidated financial statement released on Wednesday.

The stock exchange reported an after-tax profit of Rs 507 million for the mentioned period, a significant leap from Rs 158 million in the corresponding half of the previous fiscal year.

The earnings per share also experienced substantial growth, reaching Rs 0.63 for the half-year ended December 31, 2023, compared to Rs 0.26 in the same period of the previous year. Despite the challenging operating environment, the PSX has demonstrated resilience by continuing to invest in and improve its infrastructure, as well as introducing new products for both investors and listed companies.

The PSX management remains optimistic about the outcomes of these initiatives, anticipating long-term benefits for all stakeholders and contributing to the growth of capital markets in Pakistan. The positive impact of these strategic moves is now becoming apparent, evident not only in the growth of the market but also in the increasing profitability of the PSX.

The unconsolidated financial statement revealed a pre-tax profit of Rs 561 million for the six months ending December 31, 2023, marking a substantial 214 percent increase from the same period in the previous fiscal year, which recorded Rs 179 million.

Several key factors have contributed to this impressive financial performance:

1. Success of NTS and Automation: The benefits of the National Clearing and Settlement System (NTS) and automation are proving fruitful. The PSX has experienced consistently high trading volumes in recent months, with all trades executed at high speed and low latency. This technological upgrade has resulted in an increase in revenue earned from trading activities by Rs 107 million, primarily due to a higher average daily traded value.

2. Data Vending Revenue Surge: There has been a substantial increase in Data Vending revenue by Rs 129 million compared to the previous period. Data Vending has emerged as a core operating revenue source for PSX, contributing over 20% of the total Operating Revenue for the first time, compared to the previous three years where it accounted for 7%.

3. Markup Income Growth: Markup income saw an increase of Rs 68 million due to a higher rate of return and an increase in the weighted average fund on receipt of the annual listing fee.

4. Improved Performance of Associated Companies: The improved performance of the Associated Companies led to a higher share of profit from associates by Rs 160 million.

The resilience and adaptability demonstrated by the Pakistan Stock Exchange in the face of challenges, coupled with strategic investments and innovations, have contributed to the remarkable financial turnaround. As the PSX aims to further strengthen its position in the market, investors and stakeholders are likely to keep a close eye on its initiatives and future developments in the evolving financial landscape.