Qudsia Bano

The global inflation has dramatically impacted all economies, including that of Pakistan, says Muhammad Iftekhar, Equity Manager at MSMANIAR Financials Pvt Ltd, while talking exclusively to WealthPK. According to Iftekhar, people and businesses will pay more interest on their loans during inflation since the lending rates are costlier. “People avoid taking loans when the interest rate is high. The economies are currently experiencing this high inflation which has slowed the development process of developing countries.”

WealthPK: How may your firm be impacted by its increased vulnerability to changes in the economic landscape as well as other external factors, and how are you handling them?

Muhammad Iftekhar: In light of the growing debt load, expanding current account deficit and shrinking foreign exchange reserves, the economic and political situation remains uncertain. Additionally, the exchange rate was unstable during the quarter, making it difficult to anticipate where it would go in the future. It will take a few more months for the situation to return to normal after the recent floods in Pakistan devastated the infrastructure and increased the cost of doing business owing to supply chain interruptions. The general public’s disposable income has also been impacted by the rising inflation, and it is anticipated that they will continue to limit their purchases, placing severe pressure on the business’s volumes and profit margins.

WealthPK: What distinguishing characteristic of certain businesses enables them to thrive when the market is low?

Muhammad Iftekhar: People value a low price over qualities like quality or convenience more than usual during a recession. Therefore, it is a fantastic time to introduce a marketplace that enables consumers to save money. Marketplaces for rentals and those that make it simple to buy and sell used products can benefit from this trend. Inflation, which creates its own set of opportunities, is one of the factors contributing to this specific recession. Consider the chances it creates whenever you notice a commodity’s price rising. Prices of food are rising. What about a marketplace where customers may purchase a reasonably priced restaurant?

WealthPK: How does your company take initiative to sustain loyal clients?

Muhammad Iftekhar:  In-depth market research and quick action are necessary to get the most return on your stock market investment. By offering our clients excellent informational and technical support, MSMANIAR hopes to increase its capacity for profitability. We were able to gain the unwavering faith of both domestic and global clients by developing under the guidance of pioneers in the stock market and collaborating with illustrious institutions in Pakistan for 50 years.

WealthPK: What are the primary macroeconomic factors affecting the stock market?

Muhammad Iftekhar: Currently, the economy and stock market are being impacted by four major movements, and the uncertainty surrounding each of these developments presents difficulties for investors, market analysts, and investment strategists. Markets and the economy are both specifically being impacted by the Ukraine crisis, inflation, interest rates, and a strong dollar.

Performance in 2021-22:

During FY2022, the company’s revenue dropped toward the negative trend and registered at -4 million over Rs41 million in FY21, posting a decrease of 111% year-on-year.   The operating loss for FY22 stood at Rs32.9 million, registering a loss of 307%, up from a profit of Rs15.9 million in CY21. Other income of the company increased by 136% and registered at Rs17.8 million from Rs7.6 million in the corresponding period of the previous year. Loss-after-taxation for the year jumped to Rs15.4 million, a massive 164% up from the profit of Rs23.87 million in CY21.

About the company

The brokerage house was established in 1948 by the late Mohammad Ali Maniar, who was amongst the founding members of the KSE and a close associate of Quaid-e-Azam Mohammad Ali Jinnah (Founder of Pakistan). Mohammad Saad Maniar has been a member of the Board of Directors of the exchange a number of times since 1986 and had held various portfolios, including being the Chairman of the Computer Committee, Chairman of the Modernization Committee, Rules and Regulation Committee, New Products Committee, and Treasurer of the Karachi Stock Exchange.

Credit : Independent News Pakistan-WealthPk