PSX’s profit increases 16% to Rs31.46m

Risk-free investment in govt securities supports earnings

KARACHI: The Pakistan Stock Exchange (PSX) has managed to achieve higher profit by making risk-free investment in government securities.

PSX’s profit increased 16% to Rs31.46 million in three months ended September 30, 2019. The profit had been at Rs27.17 million in the same quarter of previous year, according to its notification available at the PSX website.

The company’s mark-up and interest income - the risk-free income from investment in government securities eg treasury bills and the return on saving accounts in banks - surged 49% to Rs39.95 million in the Jul-Sept 2019 quarter compared to Rs26.79 million in the same quarter of previous year.

This income partly helped the bourse to earn higher revenue and net profit as well. Apart from that, the listing fee increased 9% to Rs99.82 million compared to Rs91.46 million in the corresponding quarter of last year.

However, its income from exchange operations dropped 14% to Rs78.2 million compared to Rs91.09 million in the previous year. The decrease in income was due to low trade activities at the stock exchange in the quarter under review as a significant number of institutional and retail investors shifted part of their investment to risk-free government securities from the stock market, it was learnt. Rental income from investment in property declined to Rs11.35 million compared to Rs15.10 million last year. The share of profit from associates dropped to Rs74.9 million compared to Rs91.1 million last year.

Other income decreased to a mere Rs496,000 compared to considerable Rs1.95 million last year. The drop in the tax paid on profit also partially supported the company in achieving a higher net profit.

It paid Rs785,000 in tax on profit of Rs3.24 million in the quarter under review.

Published in The Express Tribune, October 24^th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.