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The Pakistan Credit Rating Agency Limited
Press Release

Date
28-Jun-19

Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com

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Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains the Broker Management Rating of JS Global Capital Limited.

Rating Type Broker Management
Current
(28-Jun-19 )
Previous
(31-Dec-18 )
Action Maintain Maintain
Long Term BMR1 BMR1
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects JS Global Capital Limited’s (JSGCL) leading position in the brokerage industry emanating from its association with prominent financial services group - JS Group. The rating incorporates the company's established franchise with sound geographical footprint, cutting-edge technological framework and ability to retain market share in lackluster equity market volumes. JSGCL’s experienced management team has a strong focus to deliver quality service to its foreign, institutional and retail clients. It offers various value-added services to its clients including online trading, research portal, and mobile app. A robust IT infrastructure is in place to ensure the smooth running of the operations. Strong risk management framework exists with an active involvement of the top management to constantly monitor its effectiveness. The rating derives comfort from the company’s investing policy limiting the market risk and liquidity risk. The rating also reflects the company's strong financial profile with Net Capital Balance of ~PKR 1.5bln as at Dec-18. Going forward, with a focus to provide quality services and continue to be a market leader, the company has deployed an internationally acclaimed brokerage house software in parallel to its existing system and implemented internally. The company is also willing to act as the market leader once Exchange Traded Fund is launched in Pakistan.
The rating is dependent upon the company’s management ensuring strong control and governance framework continued update of client servicing tools, and careful monitoring of risks - mainly liquidity and market risk - emanating from investment activities. Materialization of efficiencies and effective control envisaged with the implementation of new software is important.

About the Entity
JSGCL, with commercial operations starting in May 2003, carries the legacy of stock brokerage business initiated in the early seventies by Mr. Jahangir Siddiqui. With its head office based in Karachi, the company operates with eleven branches across the country. Its main activities include brokerage, corporate finance, financial advisory, forex, and money market activities. The company is listed on the Pakistan Stock Exchange (PSX). JS Bank Limited (JSBL) and Global Investment House (GIH) are the major shareholders of the company each holding 67% and 27% stake in JSGCL, respectively. Along with brokerage services, JSGCL provides financial advisory services as well.

The board of directors (BoD) of JSGCL comprises eight experienced professionals, including the CEO. Four members represent the JS Group. GIH has also nominated three well-qualified and resourceful members. The remaining member is an independent director.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.