The Pakistan Stock Exchange (PSX) is a Pakistani stock exchange with trading floors in Karachi, Islamabad, and Lahore. The PSX was formed on 11 January 2016 by the merging of the Karachi Stock Exchange, the Lahore Stock Exchange, and the Islamabad Stock Exchange. The PSX has around 375 firms listed as of January 2022, with a total market value of PKR 7,756 billion (US$52 billion). Since its debut in 1978, the PSX Top Companies Award has been given to deserving companies that are listed on the Stock Exchange. As this award has a great impact on the overall reputation and future business of companies, most of the companies apply to get this honor. The much anticipated Top 10 PXS Companies by Market Capitalization list for 2021 was released by the Pakistan Stock Exchange, which majorly influenced the market.
Eligibility for the Award:The key requirements for companies applying for this prestigious award include a minimum dividend distribution of 30%, trading of shares for at least 50% of the total number of trading days throughout the year, and the company not being in the Defaulters’ Segment of the Exchange or having trading in its shares suspended due to violation of companies listed on the exchange and regulations governing securities during the year. In order to be eligible for the PSX Top Companies Award, specific weightages are also given to reporting on the Sustainable Development Goals (SDGs) and Diversity & Inclusion.
Selection Criteria for Top Ten PSX Companies:By market capitalization, the following are the most relevant benchmarks for the selection of PSX companies in 2021:
- Profitability Ratios,
- Liquidity Ratio,
- Dividend Related Ratios,
- Solvency Ratios,
- Free-Float of Shares,
- Turnover of Shares,
- Corporate Social Responsibilities,
- Reporting on Sustainable Development Goals,
- Diversity and Inclusion,
- Corporate Governance & Investor Relations
- Compliance with Listing of Companies & Securities Regulations.
Top Ten PSX Companies of 2021:In order of performance ranking, the companies that made it to the Top 10 Companies by Market Capitalization in 2021 are:
- Fauji Fertilizer Company Limited
- Engro Corporation Limited
- Systems Limited
- Ferozsons Laboratories Limited
- Engro Fertilizers Limited
- Security Papers Limited
- Dawood Hercules Corporation Limited
- Habib Bank Limited
- TRG Pakistan Limited
- Meezan Bank Limited
Two Cents by the CEO of PSX:During his speech in the announcement ceremony of the PSX Top 10 Companies by Market Capitalization in 2021, Mr. Farrukh H. Khan, MD & CEO of PSX, said, “On behalf of Pakistan Stock Exchange, I heartily congratulate the recipients of the PSX Top 10 Companies by Market Capitalization in 2021. At a time when Pakistan needs positive economic news and role models, the PSX Companies Awards exhibit the best of the best in firm performance, profitability, governance, and reporting on sustainability in Pakistan’s industrial and business sectors. With regard to both domestic and foreign markets, this Award promotes a favorable image of Pakistan’s industry and economy. These companies are among the top in their respective fields not only in Pakistan but also globally.” With the start of 2023 everyone is looking forward to the list of Top Ten PSX Companies of 2022. For the companies who wish to get listed, the best advice is to trace out the roadmap followed and executed by the companies listing already and to make an action plan according to it.