Pakistan Equity Market - Radical Tax Reforms to Address Undocumented Economy
- We expect the Economic Reforms Package to have a one-off positive impact of USD2.5bn on External Account which marginally reduce short term borrowing requirements
- The measures are likely to dent the direct tax collection by a net PKR55bn – however this should payoff in the form of 1) increased documentation of economy, 2) larger pie of formal GDP and 3) higher disposable incomes.
- The announcement on real estate imply a significant reduction in property transactions and potential for price correction – but this bodes well for competing asset classes, including equity market.
- The Amnesty Scheme, while widely anticipated, is no way completely priced in and should thus help continue the momentum for equities. We highlight key winners as: Banks, White Goods manufacturers, FMCG’s, Motorcycle Manufactures, Footwear and Flat Steel sectors. On the flip side, a sustained downturn in real estate may result in reduced construction activity having negative implications for Cement, Long Steel and Glass sectors.
Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.
Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.
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