Attract retail investors to grow PSX

In these early signs of economic stability, current policymakers often cite the increase in KSE 100 levels as a sign of investor confidence. While this is correct, many blue-chip companies are trading at a fraction of their peak dollar valuations reached during the MSCI Emerging Market-induced euphoria in 2017, as well as the post-COVID interest rate cut-led rally in the summer of 2021. Can increasing investments from retail small-ticket investors further develop the Pakistan Stock Exchange (PSX)? Probably yes. In Pakistan, different estimates suggest that there are merely 200-250K active UIN accounts operating in the PSX. Out of those, only 5-10% would be trading every week (regulators or researchers can provide further details). Invariably, the market remains concentrated within the hands of institutional investors such as mutual funds, insurance companies, banks, and some high-net-worth individuals/family houses. Foreigners do visit occasionally to hunt for value stocks. Adding retail investments can easily strengthen trust, performance, and valuation within the PSX.