Gen Z and millennials fresh hope for Pakistan Stock Exchange?
https://www.dawn.com/news/2041495
Pakistan's stock market is attracting a new generation of retail investors as benchmark index gains and more companies return to public markets for capital. Analysts believe this shift can provide businesses with broader domestic financing sources and increase household participation in the capital market. However, sustaining this momentum will depend on investor education, trust, and protection during market fluctuations.
The Pakistan Stock Exchange (PSX) and the National Clearing Company of Pakistan Limited (NCCPL) reported 656,218 unique investor identification numbers (UINs) by the end of September, a 48% increase from the previous year. Among these, 193,147 new accounts were opened from January to September, with 25,281 accounts added in September alone.
This generation shift is driven by tech-savvy Gen Z and millennial investors utilizing digital platforms for equities access. SECP Chairman Dr. Kabir Ahmed Sidhu attributes this to digital technology simplifying and making account opening and investing more accessible for younger generations. The expansion extends beyond major cities, with Karachi, Lahore, Islamabad, Rawalpindi, and Faisalabad accounting for most new registrations, aided by digital brokerage apps and banking integrations.
However, participation remains unequal by gender, with men comprising 87% of new accounts compared to 13% for women. The SECP aims to grow the investor base to 2.5 million, implementing financial education in educational institutions nationwide. The market's growth is bolstered by equities' strong performance, with the KSE-100 Index increasing by 43.5% in fiscal year 2025-26.
Despite this, investors may still face sharp declines, prompting the SECP to offer free online courses from the Institute of Financial Markets of Pakistan to educate young people about personal finance and investment. To draw in tech-savvy youths, the SECP is developing a mobile app with a simple six-step process for online trading, replacing lengthy KYC procedures with identity and mobile verification.
Analysts support the youth integration, predicting a rapid increase in investor numbers due to the instant account opening option.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
