AHMED MALIK

KARACHI: EFG-Hermes, a Cairo-based leading investment bank in the Middle East and North Africa (MENA) Region has acquired 51 percent majority stake in the Invest and Finance Securities Limited (IFSL) and has begun its operation as brokerage house in Pakistan.

EFG-Hermes is the first foreign brokerage house that has opened its office in Pakistan after almost a decade.

Analysts say the politically stable and economically growing Pakistan is now attracting leading foreign institutions to enter its market on expectations of bright future of their businesses and hefty returns.

Pakistan Stock Exchange has become the best performing market in Asia and one of the top in the world. Recently, the MSCI has upgraded Pakistan from its Frontier Market Index to Emerging Market Index.

The top executives of EFG-Hermes on Monday visited Pakistan Stock Exchange and attended a gong ceremony. Later they held a press conference in the evening and spoke to executives of listed companies, banks and brokerage houses at a hotel.

Speaking on these occasions, the Group Chief Executive of EFG-Hermes Karim Awad said that Pakistan is very attractive market. He expects that Pakistan economy will grow tremendously in future.

“EFG-Hermes is the leading investment bank in the Middle East and North Africa (MENA) Region and it is operating in nine major counties in the MENA region, including Saudi Arabia, Jordan, UAE, Qatar, Kuwait and Oman,” he said, expecting significant foreign inflows in Pakistan stock market after its reclassification to MSCI Emerging Market from Frontier Market.

Muzammil Aslam, Chief Executive Officer of EFG-Hermes Pakistan said that this foreign group began its business in Pakistan with the commitment to remain here for a long time. “Few foreign groups had started their business at a good time here but left the country during a difficult time,” he said, expressing hope the EFG-Hermes started business on long term basis.

“EFG-Hermes has acquired 51 percent majority stake in IFSL at Rs15 per share, translating into a transaction of $1.5 million,” he said, adding that the PSX was expected to record trading transactions of around $1.25 to $1.5 billion on the first day after it is reclassified from MSCI Frontier Market to MSCI Emerging Market. Usually these transactions are around at $150 to $180 million per day.

He said many local brokerage houses don’t have financial capacity to handle the huge trade transaction of up to $1.5 billion in a day. However, the Securities and Exchange Commission of Pakistan, PSX and brokerage houses, are getting prepared for the special day.

PSX Managing Director Nadeem Naqvi welcomed EFG-Hermes Group in Pakistan saying that the trading activities would increase at Pakistan stock market after arrival of this leading foreign bank.

He pointed out that new companies are coming for listing at Pakistan Stock Exchange as they intend to raise financing through capital market in order to expand their projects.

The top Executives of EFG-Hermes Ali Khalpey, Mohamed Edeid and Murad Ansari also spoke on these occasions.