Roshan Digital Account - PSX -

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ADVERTISEMENT SUPPLEMENT DAWN THURSDAY MAY 6, 2021 1 RDA, stock exchange P AKISTAN is currently going Message the government have anchored a rela- thro­ugh an unprecedented cha­ tively swift economic recovery across n­ge in landscape being put tog­e­ major sectors of the real economy rela- and investment ther by the honourable prime minister and his team. We are seeing a level of consistency and commitment lead by tive to our peer group regional coun- tries including recovery from real estate and construction into allied sec- opportunities for the federal government in formulating adequate policy response accompanied by an open door policy allowing for a tors such as cement, steel to autos, manufacturing and pharmaceuticals. This is a combination of macro and overseas Pakistanis comprehensive input from all stakehold- ers. In this regard, the AKD Group wou­ ld like to specifically congratulate the micro level policy responses from gov- ernment institutions such as a timely response from Pakistan’s central bank T State Bank of Pakistan on the success of to reduce interest rates as well as Rs.1 HE Roshan Digital Acc­ the much needed reserves. By Raeda Latif the Roshan Digital Accounts - RDA. trillion worth of liquidity measures to ount (RDA) is the star The stock market has to-date Head of Marketing & Business The State Bank of Pakistan, under help domestic businesses including performer in Pakistan’s received a comparatively selective Development, the leadership of its Honourable deferments, restructuring and the financial landscape and response from the overseas Pakistanis Pakistan Stock Exchange Limited Governor Dr Reza Baqir, has been an Mr Aqeel Karim Dhedhi — introduction of TERF (Temporary a successful initiative of and this in my opinion can be attrib- instrumental part of the government’s Sitara-e-Imtiaz Economic Refinance Facility) to pro- the Government of Pakistan in that it uted to multiple factors. Other than Accounts and mention the procedures team in installing macro-economic sta- Chairman, AKD Group/Chairman mote setting up of new industrial units. addresses the concerns of the overseas the fact that the banks’ dashboards clearly, the stock market is a complex bility while introducing timely policy Stock Brokers Association (PSBA) At the same time various measures Pakistanis who want to build their have to be aligned to place the offer- product offering to sell as it doesn’t responses to counter the impact of that are currently being undertaken wealth in Pakistan while the govern- ing prominently within their portal unexpected and unforeseen chal- have faced in recent times. ment deploys the incoming funds into consoles of the Roshan Digital Continued on Page 4 lenges that Pakistan and the world Coordinated and targeted efforts by Continued on Page 4 Samba Bank Limited facilitating NRPs Roshan Digital Overseas Pakistanis in September 2020. The Roshan Digital Account (RDA) is a revolutionary Account concept for Banking in Pakistan. It allows Pakistanis through Roshan Digital Account across the globe with a simple & convenient way of open- ing accounts from the comfort of their homes. It provides P all the benefits of a conventional account and lifestyle ser- S AKISTAN is a country with a rich culture vices including funds transfers, bill payments etc. through AMBA Bank Limited Samba Bank Limited is amongst the branch in Pakistan. In addition to and heritage. With a strong middle class and HBL’s Mobile App. Additionally, it also allows Pakistanis (SBL) is a subsidiary of few major banks in Pakistan to offer account opening, the NRPs have dig- a rich demographical landscape, the coun- to invest in multiple investment avenues such as Naya one of the largest finan- full-scale lifestyle banking through ital access to a wide assortment of try is home to a population of over 207 mil- Pakistan Certificates, investment in the local real estate cial groups in the Middle Roshan Digital Account specifically attractive investment avenues, lion people. According to the Ministry of as well as in the Pakistan Stock Exchange (PSX). Recently East and the Kingdom of designed for NRPs. which include Conventional & Overseas Pakistanis and Human Resource Development, the Government has also added Roshan Apni Car an auto Saudi Arabia (KSA) by virtue of Roshan Digital Account is a major Islamic Naya Pakistan Certificates, around 9 million Pakistani’s (4 % of the population) loan proposition as well as Roshan Samaaji Khidmat, a majority stake. initiative of State Bank of Pakistan online trading in Pakistan Stock reside abroad. portal that allows Roshan Digital Account customers to Over the last few years, SBL has aimed at providing innovative bank- Exchange as well as investment in Remittances are an important and growing source of send contribution or zakat digitally to the charity of their invested heavily in its operations and ing solutions to millions of Non- the Real-Estate market. foreign exchange for Pakistan. Pakistanis abroad con- choice. With the addition of these two facilities, the technology to provide its customers Resident Pakistanis seeking to under- Our core objective is to serve our tinue to remit money back home and have widely Roshan Digital Account has become a comprehensive with a world-class banking experience take banking, payment and invest- customers in an ethical and transpar- entrusted the country’s banks and other legal avenues for solution for the Overseas Pakistanis. not just in Pakistan but also around ment activities in Pakistan. ent manner and to play the role of cat- transfer of funds. As the largest bank in Pakistan, HBL is shaping the the world. For the first time in Pakistan’s his- alyst in the financial sector of To accelerate the flow of Remittances through banking future through a paradigm shift towards becoming a Owing to our technological prowess, tory, NRPs have the opportunity to Pakistan thus contributing in steer- channels and facilitate expatriates with a reliable, and ‘Technology Company with a Banking License.’ HBL was customer-centric operations and remotely open an account in Pakistan ing Pakistan towards a more stable convenient mechanism to remain connected to their one of the few banks chosen to lead this initiative. With expertise in handling the Non- through an entirely digital process country, the Government of Pakistan (GoP) launched the Resident Pakistani (NRP) segment, without any need to visit a bank Continued on Page 3 Roshan Digital Account, a unique initiative for the Continued on Page 3 2 DAWN THURSDAY MAY 6, 2021 ADVERTISEMENT SUPPLEMENT Foundation Securities (Pvt) Limited providing one-stop digital solution to NRPs T HE Foundation Securities (Pvt) Ltd (FSL) sive experience in servicing both domestic and interna- • Trade Shariah based Exchange Traded Fund Meezan started its journey in 2005 as financial ser- tional institutional investors with relationships across the Pakistan ETF. vices arm of Fauji Foundation group. The globe including key financial centers. vision of Foundation Securities is to provide Foundation Securities has received the award for Best Account opening — Shariah best in class equity related financial services Analyst in Transportation and Logistics (2020) by Asia to investors. This goal is coupled with a broader vision of Money and has been the runner-up for Best Equity Trader Edge creating financial awareness which plays a vital role in the award (2019) by CFA Society Pakistan. Simply fill and submit Client Relationship and Know development of financial markets of any country. The Foundation Securities derives strength from spon- Your Customer (KYC) forms along with relevant docu- Since its inception, Foundation Securities (Pvt.) Limited sor Fauji Foundation which is amongst the largest business ments and do Biometric verification. has emerged as one of the leading brokerage houses pro- conglomerate in Pakistan with non-profitable goal as its viding specialised financial services through offices in slogan is “Earns To Serve”. EDGE — Roshan Digital Karachi, Lahore and Islamabad catering to the needs of a Key companies in the group include, Fauji Fertilizer large base of local and foreign institutions and retail cli- Company Limited (FFC), Fauji Fertilizer Bin Qasim Account ents. Limited (FFBL), Fauji Foods Limited (FFL), Mari Roshan Digital Account is an initiative by the State As a part of modernisation in 2011, FSL started with Petroleum Limited (MARI), Fauji Cement Company Bank of Pakistan to facilitate Non-Resident Pakistanis state-of-the-art online trading platform which provides Limited (FCCL) and Askari Bank Limited (AKBL) etc. (NRP) in opening a digital / online bank account with SBP seamless service to non-resident Pakistanis locally and designated banks to facilitate digital access to all conven- around the globe. Our online products tional account services including funds transfer, The company has one of the most accredited equity mar- Investment in Stocks, Investment in Real estate, bills and ket teams in Pakistan providing the best services to We cater to large number of online clients and offer fee payments, and e-commerce. Foundation Securities classes of investors like High Net Worth, Institutions, state-of-the-art online trading system “Foundation Edge” provides seamless equity trading and research services Asset Managers, Foreign Investors and individual clients. which is a multi-trading platform (application & web trad- our customers from Roshan Digital Account. Our pro-ac- Our highly qualified and dedicated research team Syed Ahmad Zaidi ing) and offers following key features: tive sales and customer support team is poised to advice works closely with investors and augments to their invest- CEO • Fast & Secure application. you with timely investment opportunities and make your ment decisions. Foundation Securities provides highly Foundation Securities (Pvt.) Limited • Live charts, Market information & various other tools trading smooth and productive. regarded professional research with sound fundamental •C lient Custody, Cash and Portfolio reports. Foundation Securities is one of the few TREC Holders of insights to all major industry segments. Our research proprietary book so our customers are confident of execu- • Online payment request. Pakistan Stock Exchange (PSX) to electronically link up department covers more than 60% of KSE-100 market tion integrity. These efforts have earned Foundation • Online deposit & withdrawal. CDC (Investor Account and its Direct Settlement Service) capitalisation. We also provide detail notes on macroeco- Securities to be rated amongst top brokerage houses of • No Hidden Cost. with its Digital Trading Solution and integrate it with all nomic outlook. Coupled with research insight, FSL pro- Pakistan. • Access to our high quality technical & fundamental the banks offering Roshan Digital Account. vides superior market insight and strive for most efficient The FSL team members of equity research and Sales research. Foundation Securities also took lead in providing one- execution using technological tools. To maintain highest Desk have been recognised by CFA Society Pakistan and • A dedicated IT helpline number will be avail to assist stop digital solution to Non Resident Pakistanis for the professional and ethical standards FSL does not maintain Asia Money. Moreover, Foundation Sales Desk has exten- you with any IT related issues. opening of their corresponding Stock Investment account. • Call & Trade facility available. NRP scan select Foundation Securities as their broker after opening Roshan Digital Account with selected bank Edge Value — Value yourself and access Pakistan Stock Exchange through its online trading terminal. with Edge Value A self-directed account in which investors trade with Research Portal — All Since its inception, Foundation Securities their own judgment. Open an account with only PKR 25,000. information at one place Our customers get free access to our research portal (Pvt) Limited has emerged as one Edge Prime — Be privileged with Edge Prime which is one of the most comprehensive in the industry. We offer the following features in our research portal which is integrated with our Online Stock trading software of the leading brokerage houses providing In this package, Foundation Edge provides Online Trading Account and assign a trader. Open an account • Real Time and Historical Data • Published research reports on stocks under coverage with only PKR 300,000. • Flexibility to view Analytics Portal data in 5 interna- specialised financial services through Shariah Edge – Pioneer in tional currencies • Indices Dashboard offices in Karachi, Lahore and Islamabad • Financial Statements, fundamental and comprehen- Shariah based stock sive qualitative analysis trading Platform • Updated Economy Indicators on Dashboard catering to the needs of a large base of An exclusive product for Shariah compliant stocks of KMI ALL PSX index. Now invest through Shariah EDGE • Advance Technical Analysis Charting • Company Snapshot, Sector Trackers • Investing Newsfeed, Live Script ticker, Payout Calendar local and foreign institutions and retail clients. platform using Desktop Terminal, Web portal and Mobile App with 100% Cash investment. No Leverage or loan and • Portfolio Investment details graphs and data (FIPI & LIPI) following features meeting the standards of Shariah • Live and historical announcements Platform: • Detailed insider transactions and much more. • Trade on Ready counter only Being your preferred broker FSL now plans to offer real- • Selling allowed after settlement only time online payment solution and additional features in • Restriction on sale of Letter of Rights Research portal, road shows and much more. n ADVERTISEMENT SUPPLEMENT DAWN THURSDAY MAY 6, 2021 3 Benefits of RDA The market expects the number of accounts to grow further and RDA deposits to jump to $1bn before the end of the current fiscal on June 30 and to $1.5bn-$2bn by end December, shoring up the country’s weak for- Endless opportunities O W eign exchange reserves. Lucrative interest rates compared with the VERSEAS Pakistani workers have shown a tremendous nearly 0pc return they are getting in their host countries as well as the ITHIN eight months of Khidmat), SBP is also working on launch- interest in the Roshan Digital Account initiative of the ease of moving their money into and out of Pakistan by clicking on their the State Bank of ing other products under RDA. This digital State Bank. Pakistanis living and working in 100 coun- mobile devices whenever they need to is believed to have contributed Pakistan (SBP) launch- initiative also provides a medium to NRPs tries across the world have so far opened 100,000 accounts significantly to the success of the initiative. ing the Roshan Digital to invest in Pakistan’s equity markets. to transfer a total sum of $671m back to the country of In addition, the facility to non-resident Pakistanis to invest in property, Account (RDA), a first- We are proud to share that JS Global their origin in almost six months after the initiative was launched by the government debt papers and the stock market, and to pay online tuition of-its-kind formal digital channel that Capital is one of the first TREC Holders of prime minister. Half of these deposits are said to have been shifted to fee or utility bills through their digital accounts must have also served as allows foreign currency to flow into Pakistan Stock Exchange (PSX) to digi- local banks in the last two months as more non-resident Pakistanis learn a huge attraction. Pakistan through documented means, our tally connect all banks offering RDA with about the scheme. By way of example, non-resident citizens of India as well as China prediction of the US$1 billion fund inflows prospective clients’ CDC Investor Account have had a crucial role to play in the economic progress of their home in RDA milestone has become a reality. and link its Direct Settlement Service country. They have not only helped by remitting their savings for invest- With the collaboration of the banking (DSS) with its Digital Trading Solution. ments but have also played an important role in changing the world’s sector, the response to RDA, offered to the Once again, being the first movers, we also perception of their countries, resulting in the inflow of massive foreign Non-Resident Pakistanis (NRPs), has esca- offer one-stop digital solution to our pro- It is hoped that the success of direct investment. lated rapidly, with most of the deposits spective NRP clients. Though investment Overseas Pakistani workers have also been doing much to help their reportedly parked in the attractive invest- in the local bourse has not been as signifi- these digital accounts will country by contributing to the stability of the nation’s external ments, Naya Pakistan Certificates (NPC). cant as yet, the attractive multiples of account via large remittances that are equal to our annual exports. It The product has not only given a boost to KSE100 Index offer a remarkable opportu- encourage the central bank is regrettable though that it is only now that the government and the central bank have taken steps to facilitate them in moving their sav- contribution towards financial inclusion from NRPs, providing support to total for- nity to NRPs to invest in one of the world’s most attractive markets. to come up with more ings back home. It is hoped that the success of these digital accounts will encourage the initiatives to persuade overseas central bank to come up with more initiatives to persuade overseas Pakistanis to invest more. Pakistanis to invest in the manufacturing industry and other productive segments of the economy in order to enhance growth, create jobs and The Pakistani diaspora is estimated at make up for the drying foreign investment. n approximately 6.3 million (about 25 per The Editorial was first published in Dawn on March 15, 2021. cent in Saudi Arabia), making Roshan Digital Account globe in this initiative. As per SBP estimates over 124,000 accounts have been opened by the participating banks with over USD 1 bn channeled in terms of remittances thus far. Pakistan the sixth largest origin of total Continued from Page 1 To encourage Pakistanis to invest in their home country, the GoP has allowed multiple investment avenues through the medium of Roshan Digital Accounts. migrants in the world. Assuming SBP ebanc Roshan Digital account, HBL is striving to simplify the lives of all its customers with a 4 step process and minimum documentary requirements to One of the most lucrative options allowed under this scheme perhaps is the investment in Naya Pakistan Certificates which offer extremely lucrative is able to tap 40 per cent of these ensure that each customer gets personalized service 24/7 across multiple ter- returns. Available in both conventional & Shariah Complaint variants, these ritories and time zones. scrip less certificates are denominated in PKR as well as multiple foreign cur- NRPs to each deposit US$1,000 Recognizing this as a great nation building opportunity, HBL has taken a rencies like USD, GBP & EUR. These certificates are an increasingly popular leading role in encouraging overseas Pakistanis toward this proposition. Using both conventional and digital mediums to promote the Roshan Digital investment avenue by the Pakistani diaspora abroad. As per SBP estimates, thus far Pakistan has seen an influx of USD 675 mn channeled into NPCs alone. in RDAs, it can potentially gather Account, HBL has been actively utilizing multiple channels to showcase the initiative. HBL developed and aired its own TV Commercial highlighting HBL strongly believes in the Roshan Digital Account initiative and is proud to be associated with this proposition. The Roshan Digital Account has been a US$ 2.5 billion deposits. Naya Pakistan Certificates and other Roshan Digital Account features to priority for the bank since its launch. As the bank continues its journey of showcase the salient features of the proposition. Using conventional channels maintaining its position as the leading financial institution in the country, it to promote the initiative, HBL deployed ads on radio, print media including a remains committed to supporting Pakistan’s economic growth and develop- front page ad in leading newspapers of Pakistan. The Bank also published ment, taking the lead in shaping the financial services landscape and increas- eign exchange reserves of the country but While the MSCI Emerging Markets trade advertisements in magazines coupled with press releases to highlight the ing its regional relevance. HBL will continue to ensure that the benefits of the has also encouraged remittances routing at a Price Earnings multiple of 23.05x, the Roshan Digital Account proposition. Roshan Digital Account are communicated to Pakistanis across the globe. through official channels and provide digi- KSE100 currently trades close to 7.5x. This The Bank has also undertaken promotion of the proposition via its social The proposition will continue to remain a priority for the bank in the tal banking solutions such as fund transfers, effectively means that Pakistan equities media accounts on Facebook, Instagram, twitter, YouTube and LinkedIn. near future. n bills and fee payments, investing in real are currently trading at a discount of more Partnering with Pakistan’s leading airline, HBL continues to offer hygiene estate and other e-commerce activities. than 65 per cent to comparative peers. From kits consisting of a mask and sanitizer for all domestic and international For opening your account, details of additional benefits and investment oppor- The Pakistani diaspora is estimated at another perspective, the KSE-100’s Price passengers in these tough COVID afflicted times. tunities through ebanc Roshan Digital Account, visit www.hbl.com/ebancros- approximately 6.3 million (about 25 per Earnings multiple over the last decade has There has been an overwhelming response by Pakistanis from across the handigitalaccount cent in Saudi Arabia), making Pakistan the been 9.7x while the 15-year average stands sixth largest origin of total migrants in the at 10.6x. Similarly, the Price to Book ratio of world. Assuming SBP is able to tap 40 per the KSE100 currently stands slightly below Samba Bank Limited facilitating NRPs mobile banking application and internet bank- ing which allows the customer to stay up to date cent of these NRPs to each deposit US$1,000 in RDAs, it can potentially 1x as against the 10-year average of about 1.6x. Hence, it becomes evident that the through Roshan Digital Account on all the account activities including place- gather US$ 2.5 billion deposits under the KSE100 is attractive even from the lens of ment of requests for investments in Naya same. While this number is not unachieva- its own historic average. Pakistan Certificates (Conventional & Islamic), ble (it is the equivalent of an average Euro The RDA provides NRPs a great opportu- utility bill payments and mobile top-ups, easy Bond earlier floated by the government), nity to invest at these tremendous valuations. Continued from Page 1 franchise’s core operational model which access to wealth insurance products and high we believe SBP would need to continue to Furthermore, the Exchange Traded Funds revolves around providing customers with the yielding investment avenues. The RDA custom- execute an aggressive marketing strategy (ETFs) are also a great investment avenue for and prosperous economic hub. convenience of undertaking day to day banking ers can use their Samba Master Debit Card to accomplish the same. Moreover, with the less active investors, allowing them to Samba Bank Limited’s collaboration with the transactions ‘digitally’ from the convenience of around the world for ATM transactions, recent announcement of launching car track a pre-selected basket of stocks. n State Bank of Pakistan for marketing the their homes or wherever they are in the world. E-Commerce, at millions of merchants around financing (through Roshan Apni Car) and Roshan Digital Account is a natural fit to the The Bank offers state of the art & secured the world as well as CIP lounges. n offering charity (through Roshan Samaji —JS Global Capital Ltd 4 DAWN THURSDAY MAY 6, 2021 ADVERTISEMENT SUPPLEMENT AKD Securities Limited (AKDSL) — pioneers T+2 settlement mechanism. • Strictly cash based and any kind of lever- aged trading is not allowed. • Trading in right shares not allowed. of digitalisation journey RDA Account Opening Mechanism: All you need to do is to visit the website of any of the participating banks and initiate your bank account opening process by filling in their A forms, providing the required details and KD Securities Limited - a mar- Roshan Digital Accounts (RDA): own levels suiting your own style and standards. use of this facility. uploading the required documents. Once your ket leader in brokerage and An initiative taken by the State Bank of AKD Research: We will also be sending you Withdrawal/Repatriation Facility: Hassle- bank account will be opened and you will investment banking activi- Pakistan facilitated by Central Depository Research reports on daily basis on your given free withdrawal mechanism to transfer your receive the login credentials from the bank, ties. Underpinning our strat- Company – CDC, National Clearing Company email address not only covering important funds (Capital + Profits) from your custody you may then login into your online bank egy that is spread across all of Pakistan limited – NCCPL, Pakistan Stock happenings and key information regarding accounts back to your country of stay. roshan- account and select the Capital/Stock Market aspects of our operations, we maintain an Exchange – PSX, Securities & Exchange different companies, sectors of the market but [email protected] Investment option from the banks online por- unwavering focus on meeting the needs of our Commission of Pakistan - SECP providing a the overall economy as well. Transparent Records and Credibility: Our tal and ultimately select AKD Securities clients. From unmatched excellence in unique opportunity for Overseas/Non- AKD Equity Advisory Desk: An Equity clients can always access their online accounts, Limited as your preferred broker. research and brokerage for domestic and for- Resident Pakistanis (NRPs) to electronically Advisory service for consulting investment their relevant statements/records and can rec- Once you will make the selections and give eign institutional investors to a revolutionary open a digital/online bank account with any and trading decisions, is also available to all oncile it anytime. We very strongly believe in your consent on the relevant terms and condi- online stock trading platform to insightful of the participating banks. AKD Trade account holders (having a mini- conducting the business in a very transparent tions, all your details and documents, which investment and advisory services. We con- AKD Securities Limited would be the first mum portfolio of PKR 1 million) and can be and conducive manner and have a proven you had provided to the bank at the time of stantly deliver top-quality services including brokerage house to provide multiple custody availed by requesting at [email protected]. track record of credibility and reliability. applying for the bank account opening, will execution, settlement, and research and risk option to its valued RDA clients through: There are no additional charges for availing Roshan Digital Account (digital processing be forwarded to CDC/NCCPL and will ulti- management to enhance your trading experi- • Central Depository Company of Pakistan this facility. through banks online portals): If you don’t mately reach us. ence. A renowned investment banking Limited AKD Commission Structure and Charges: have a local PKR bank account, want to invest department rounds up our product suite. • National Clearing Company of Pakistan We have one of the most compatible through remittances and do want an option of Some salient features of RDA: AKDSL has consistently held a market Limited (coming soon) Commission Structure and Schedule of repatriating your funds back to your country • The stocks trading option is only available leading share of around 10% of the Daily Charges among all the market participants of stay, you may open a Roshan Digital Account in PKR Roshan Digital Bank Accounts. Traded Value at the PSX. We service to over AKD Trade Services for RDA Clients: with no hidden charges in any scenario. Our with us through any of the following banks: • The facility to repatriate your funds back 100 institutions; both domestic and interna- Some key online services being extended to Commission is inclusive of PSX, SEC and • Bank Alfalah to your country of stay is only available in tional, alongside high net worth clients across our valued RDA clients include: NCCPL transaction charges, which are gener- • United Bank the RDA account. several sectors. A large and diversified insti- AKD Trading Platforms: As far as services ally passed on to the client in the industry. • Habib Bank • Zakat is exempted on dividends while tutional as well as retail client base enables us are concerned, we will be providing you the AKD Customer Support: An Interactive • MCB Bank Withholding Tax on dividends and Capital to execute regular orders, large block trades platform for carrying out online stocks trad- Voice Recording based Call Centre facility • Samba Bank Gain Tax on RDA to be taxed at the mini- and private placements with speed, efficacy ing transactions, you may just login into your through UAN: +9221-111-253-253 (9:00 am to • Meezan Bank – For Shariah Compliant mum rate of those who submit their and minimum impact cost. AKD Trade account and explore all the 5:00 pm PST on working days) for trading as Trading annual tax returns. The Equity-Brokerage division caters to options available in our trading platforms. well as customer support and official email • Faysal Bank – For Shariah Compliant • All book keeping, custody of funds/securi- both local as well as foreign institutional cli- AKD Trade Cast: You may download our channels of [email protected] for any que- Trading ties, trading facility and settlement obli- ents and high net worth individuals. Retail main trading platform (for desktop/laptop) ries or concerns. • Dubai Islamic Bank (Pakistan) - For gations of Normal Accounts being main- clients are serviced through AKD Trade; from online.akdtrade.biz Funds Transfer Facility: In order to start Shariah Compliant Trading tained and looked after by the AKDS Pakistan’s first online trading platform and AKD Tick: Mobile trading app available at your trading activity and further deposits Some key restraints in Shariah Compliant itself, while only trading facility would be the online division of AKD Securities Limited Google Play Store for Androids onwards, you would be required to transfer Trading: All Roshan Digital Accounts being extended to the RDA by AKDS, while all which enables investors to trade at the PSX AKD iTick: Mobile trading app available at funds to the to our designated bank accounts processed through Meezan, Faysal & Dubai other obligations would be taken care by from anywhere around the world. AKDSL has App Store for iOS. (for normal accounts) while to the designated Islamic Bank (Pakistan) would only be the CDC/NCCPL. always taken the pride of introducing innova- AKD Analytics: Besides a variety of other fea- bank accounts of CDC (for RDA). Usually the allowed Shariah Compliant Trading; • An RDA can only be funded through remit- tion, digitalisation & modernisation in the tures available in our trading applications, amount gets credited to your trading account • Can only trade in a total of 209 companies, tances from abroad from the very same bank capital markets of the country. Introduction there’s a link of AKD Analytics in AKD within two hours. currently being considered as Shariah account through which it will be opened and of online stocks trading platform by AKD TradeCast, where you can find a wide range of Off-Hour Order Placement Facility: We pro- Compliant, out of a total 530 plus compa- repatriation of funds through the same bank Securities almost 19 years ago proved to be fundamental data as well as technical tools vide our account holders with a facility to nies listed at the PSX. account would also be possible. the first step towards modern day digitalisa- including advanced chartings allowing you to place their trading orders even after the mar- • Cannot day trade or sell any stock even on • An RDA cannot be funded through any tion being witnessed in the form of Digital make comprehensive decisions not only for ket is closed so that our clients living across the very next day of purchasing i.e. before other source, bank account either local or Onboarding and Roshan Digital Accounts. selecting the right stocks but also deriving your the globe in different time zones can make it is delivered into your CDC account on even Roshan Digital. n RDA, stock exchange and investment opportunities for overseas Pakistanis Continued from Page 1 different stocks and pick the optimal KOSPI Index) and USA (8% - S&P 500). ing individual stocks, holdings, prices By investing in an ETF, the investor Moreover, the option to buy two or more one in terms of their risk return objec- and managing the weightage of individ- gets a product which is created and different ETFs is always open. In a nut- have a straightforward profit amount tives or financial range. A simple solution — Exchange Traded ual stocks and portfolio rebalancing. managed by professional fund manag- shell, beginning to invest in the stock to communicate. This is the reason why stock market Funds Exchange Traded Funds offer specific ers of respective Asset Management market through the Exchange Traded While those who have even a basic investment might be a bit of a hard-sell So what should be offered to the over- portfolios to invest in. Each unit of a Companies who have identified differ- Fund is a no-brainer and once the inves- understanding of the stock market though it should not be so as Pakistan’s seas Pakistani to attract them to their stock ETF comprises select predefined ent companies’ stocks and created a tor becomes familiar with the market, would know that they have to work stock market offers some of the highest homeland’s capital market? Whilst company stocks and number of shares of diversified portfolio whilst undertaking symbols of stocks and market move- closely with the brokerage firms to returns in the world in comparison to keeping in view that many overseas each stock based upon the ETF’s objec- the research, portfolio balancing and ments, the investor can move forward build their portfolios i.e. outline their other markets globally. The (CAGR) Pakistanis may not be financially savvy tives. At the moment, there are four timely updation. This entire exercise by and begin making his own stock picks to investment objectives, identify the returns offered by Pakistan’s stock mar- and are not comfortable with financial stock ETFs listed on Pakistan Stock the fund managers frees the investor build a customised portfolio for himself. companies in which they want to ket (KSE-100 Index) have been the high- analytics and research required to build Exchange. Each offers a different portfo- from spending time and energy in stud- As it is, investing in Pakistan Stock invest, and gauge the risk vs return est* (14%) for the last 20 year period in stock portfolios, the Exchange Traded lio focusing on select sectors. These are ying and choosing the optimal stock Exchange means investing in one of potential of the various scrips. Active USD terms as compared to the returns Funds (ETFs) present themselves as the NIT Pakistan Gateway ETF, UBL investment options for himself and the the best performing markets of the stock selection can be a bit of a chal- from markets such as China (6% - perfect solution. By investing in ETFs, Pakistan Enterprise ETF, NBP Pakistan investor only has to choose the ETF suit- world and, specifically, the best per- lenge for the newbie investor as it Shanghai Comp Index), India (13% - the investor participates in the stock Growth ETF, and Meezan Pakistan ETF. able to his investment objective. forming market in Asia**. Moreover, requires skill and time to analyse the Sensex Index), South Korea (12% - market without worrying about follow- The last ETF is a Shariah-compliant as per Bloomberg’s data, PSX’s KSE- instrument for all those investors who So how does one begin investing in the 100 Index has proven to be amongst want to invest in a way compliant with stock market through the Exchange the top best performing indices in the Islamic values and jurisprudence. Traded Fund? world – leaving behind US’s, China’s, The ETFs constitute different set of Eight of the RDA participating and India’s stock markets - over a stock picks. The NIT Pakistan banks offer the stock market invest- period of 20 years*. With such an envi- Gateway ETF includes the largest ment account option. Once the Roshan able track record, it is no wonder that stocks forming part of the KSE-100 Digital Account is opened, the (pro- Pakistan Stock Exchange is an attrac- Index so as to cover at least 50% of the spective) investor will request his bank tive, albeit somewhat hidden, gem for total market capitalisation of the KSE- to open a stock brokerage account. The investors all over the world. 100 Index at all times, the UBL account holder/(prospective) investor Currently, there is a need for more Pakistan Enterprise ETF consists of will provide consent that his account overseas Pakistanis to come forward stocks from the Benchmark Index details may be shared with the Central and invest in this hidden gem. Pakistani which provide long term capital appre- Depository Company (CDC) and other investors residing abroad can make use ciation and dividend yields to inves- capital market entities. Then the of the RDA platform and invest in their tors, and the NBP Pakistan Growth account holder has to choose a broker- native homeland’s market and earn ETF constitutes diversified portfolio age firm and proceed to open the trad- competitive returns. At present, the of stocks of 15 blue chip companies ing account. Following the instructions amount invested by overseas investors across several sectors of the market. of opening the trading account, the in PSX through RDA is more than PKR For an overseas Pakistani, it serves as account holder will finally get access to 1.738bn (as of May 04, 2021). This is not a very good opportunity to buy units of the online trading application which is a relatively large number but it is hoped an Exchange Traded Fund as within provided by the brokerage firm once that more and more overseas Pakistanis one purchase, the investor can own a the account is opened and he receives will discover their homeland’s attrac- select number of companies’ stocks, his Unique Identification Number. tive capital market and invest in droves thereby investing in a portfolio by Thereafter, the account holder depos- in it. This will not only add to their default. In some ways, investing in its funds in the cash account of the income and returns but will also add to ETFs is like investing in mutual funds, bank which will enable him to invest in Pakistan’s economy. All in all, invest- with the added advantage that ETFs the stock market. ment in Pakistan’s stock market have comparatively lower management Through the app, the account holder through the RDA by overseas fees without any sales/load charge as may select the Exchange Traded Fund, Pakistanis will result in a wholesome well. However, broker’s commission is the number of units to buy and proceed and beneficial financial relationship charged against ETF trades similar to with the transaction. The investor can for all parties involved. n shares trading. Furthermore, the price also review the constituent stocks of the of a unit of ETF is visible on screen dur- ETF he has selected to invest at the given *(Source: Bloomberg) ing the trading day just like share price. link on the stock exchange data portal. **(For September 2020/ Source: Bloomberg) Message Pakistan provides. At the same time as Additionally, across institutions at new features and opportunities are the federal level along with apex and added into the RDA fold, I firmly believe front line regulators the capital mar- Continued from Page 1 this initiative will have a multifaceted kets are seeing a response we have not positive impact on Pakistan’s economy seen at least in the last 15 years. To fur- will long serve in addressing Pakistan’s and the lives of our people at home. ther give you an example we at the structural imbalances such as a move The government’s consistency in AKD Group would like to commend the to make Pakistan’s rupee market deter- delivering impactful policies and spur- efforts of the SECP as well as Pakistan mined to measures in improving the ring economic development and indus- Stock Exchange for deciding to keep flow from formal channel for reserves. trialisation are expected to go a long the exchange open during the peak The Pakistani rupee is the fourth best way in creating a structurally sound pandemic cycle at a time when select performing currency in the world and Pakistan for the future. For instance frontier market peer group exchanges best performing currency across under the current government’s initia- enforced indefinite closures. This will emerging markets CYTD. tive Pakistan has moved up 28 places go a long way in building confidence At the same time, Pakistan’s remit- and is now at 108 in the World Bank’s not only of domestic investors but inter- tances are averaging US$2.4bn a latest ease-of-doing business index. The national investors in terms of the mar- month this year up 26% on an average increasing provision in industrial and ket resilience and maturity. monthly run rate basis. One of the most special economic zones under CPEC are This was a time when there were sev- noteworthy achievements over the last slated to provide impetus to manufac- eral instances across regional markets several years has been to recently turing as a contributor to GDP Growth. such as Sri Lanka and Bangladesh being include Pakistan’s vibrant and robust We are now seeing capacity expan- shut down during country wide lock- expat community through the Roshan sions and debottlenecking exercises downs. Keeping the market open set the Digital Account into Pakistan’s finan- being undertaken across a wide spec- stage for a sharp V shaped recovery the cial ecosystem. The RDA since its trum of sectors. Pakistan’s external market has gained close to 60% from its introduction has attracted over account is now on a sustainable footing Covid low and ranked among the best US$1bn with opportunities such as posting a surplus of USD959mn versus performing markets in Asia. Despite the USD based Naya Pakistan Certificates a deficit of USD4.1bn in the same stellar performance, valuations for the or other asset classes. As awareness period last year. At the same time the PSX remain extremely low, with P/E at improves among the diaspora I expect government’s fiscal consolidation just 6.4x compared to regional average the RDA to become a significant source measures and enhanced focus on of +13x. At the same time, Pakistan for foreign exchange with inflows improving tax collection are becoming equities remain highly lucrative in potentially reaching over USD3bn by increasingly visible where Pakistan is terms of yield, with dividend yield the end of the year and over the longer on track to achieve the highest revenue standing at 7.6x, contrasting signifi- term account for USD10-15bn. collection in its history. One of the key cantly to regional average of just 2%. The RDA allows unhindered and hallmarks of this government and a key I am hopeful for a brighter Pakistan unrestricted access to capital markets catalyst for economic growth will be and remain confident in the govern- including equity, debt and potentially social upliftment particularly through ment’s ability to deliver meaningful real estate markets creating depth as a its focus on housing. The provision of and lasting change. Continued focus on basis for development while improving low cost housing to the financially adequate and supportive policy will financial inclusion by including our underserved will have significant spill- continue to strengthen Pakistan’s expat Pakistanis as well as extending over effects on Pakistan’s economy and investment case and increase optimism the undemanding opportunities related industries. for a brighter future ahead. n