KARACHI: In a year full of events and developments, some positive and some challenging, Pakistan Stock Exchange (PSX) has announced the recipients of the Top 25 Companies Awards for the year 2019.
As per tradition, the criteria for selecting such companies was also updated and upgraded in 2019 in line with the evolving business environment and requirements. For the said year, the prerequisites included a minimum distribution of 30 percent (including at least 15 percent cash dividend), shares traded 50 percent of the total trading days during the year, and that the company is not in the Defaulters' Segment of the Exchange or trading in its shares have not been suspended on account of violation of Listing Companies and Securities Regulations of the Exchange during the said year.
The Top 25 Companies Award is a tradition at Pakistan Stock Exchange which goes back to 1978. Historically, the best performing listed companies in Pakistan are awarded this distinction. Broadly speaking, companies which have outperformed others in the spheres of corporate governance, financial performance, and have added to shareholder value based on specific quantitative criteria, amongst other factors, make it to the Top 25 Companies List.
This award takes into account the excellent performance metrics of such companies and recognizes the able guidance of their boards and strong management. By awarding and recognising such role models, Pakistan Stock Exchange seeks to promote more such listed companies to come to the fore and make their rightful claim on the award by virtue of their excellent performance and contribution to Pakistan's economy.
On the announcement of the Top 25 Companies Awards recipients, the MD and CEO of Pakistan Stock Exchange, Farrukh H. Khan said that the Top 25 Companies Award is the most prestigious recognition of overall corporate performance in Pakistan. "I would like to congratulate all the companies that have achieved this distinction for 2019. They are leaders and role models for other corporates to emulate. These companies have created tremendous shareholder value, contributed significantly to Pakistan's economy and have projected a positive image of Pakistan globally".
"I am also excited to share that for the year 2020, PSX has further improved the criteria for the Top 25 Companies award to take into account current trends and developments in the investment industry", he said adding that this includes focus on total shareholder returns rather than just dividends, reporting on diversity and sustainable development goals (SDGs), amongst others changes.
In 2019, the distribution of marks awarded to the companies was based on the criteria of Capital Efficiency (20.5 percent marks), Dividend Distribution including Bonus (20 percent marks), Growth in Operating Revenue (6 percent marks), Change in EBITDA Margin (6 percent marks), Free-float of Shares (10 percent marks), Turnover of Shares (2.5 percent marks), Corporate Governance and Investor Relation (35 percent marks). This brings the total to 100 percent marks signifying the different criteria for selecting companies for the Top 25 Companies Awards.
The companies that made it to the Top 25 Companies Awards list in 2019, in order of their performance ranking, are Fauji Fertilizer Company Limited, Nestle Pakistan Limited, Lucky Cement Limited, Habib Bank Limited, Archroma Pakistan Limited, Engro Fertilizers Limited, Security Papers Limited, Bank AL Habib Limited, United Bank Limited, Colgate - Palmolive (Pakistan) Limited, Mari Petroleum Company Limited, Attock Petroleum Limited, Dawood Hercules Corporation Limited, Pakistan Oilfields Limited, Bata Pakistan Limited, International Industries Limited, MCB Bank Limited, International Steels Limited, Millat Tractors Limited, Agriautos Industries Limited, Engro Corporation Limited, EFU General Insurance Limited, ZIL Limited, AGP Limited and Gadoon Textile Mills Limited.
In the challenging economic environment faced by Pakistan in view of the coronavirus pandemic, the recognition of these companies by Pakistan Stock Exchange will not only bring them the attention of local and foreign investors, analysts and portfolio managers but will also cast a positive light on Pakistan's business, economic and financial sectors, locally as well as globally.
Copyright Business Recorder, 2020
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