Agreement signed to form Pakistan Stock Exchange

[Gazi]

Agreement signed to form Pakistan Stock Exchange | BUSINESS - geo.tv


ISLAMABAD: A Memorandum of Understanding (MoU) was signed in Islamabad on Thursday to form Pakistan Stock Exchange, with the merger of Karachi, Lahore and Islamabad stock exchanges.

Speaking on the occasion, Finance Minister Ishaq Dar expressed the confidence that Pakistan will secure a new place in international capital markets with the emergence of one national stock exchange.

He said Pakistan Stock Exchange will be made vibrant and competitive in the global financial markets.

Dar added that Pakistan has a great potential to turn into a strong, stable and economically sovereign country.

Highlighting the steps taken for revival of economy, he said the world financial institutions are also recognising stability in Pakistan's economy.

The finance minister went on to say that efforts will now be made to enhance growth rate to six to seven percent as envisioned in the medium term framework.

He said special emphasis is also being given to the development sector and allocations for this purpose have been doubled in the last two years.

The minister further said that the foreign exchange reserves are at a historic height and hovering between 18.50 to 18.75 billion dollars. He said efforts are afoot to enhance the reserves to over 20 billion dollars very soon.

Regarding energy crisis, Dar was confident that 10,000 megawatt of electricity will be added to the grid by December, 2017.

 

[Hyde]

That's a strange news coming out of the blue

I am not sure about its implications but I do hope it turns out to be a great success for Pakistan. It will surely help Pakistan Stock Exchange come out as a bigger Stock Exchange at International Market but how significant, only time will tell

 

[Faiez]

That's a strange news coming out of the blue

I am not sure about its implications but I do hope it turns out to be a great success for Pakistan. It will surely help Pakistan Stock Exchange come out as a bigger Stock Exchange at International Market but how significant, only time will tell

It will help the smaller companies listed on the smaller exchanges get more exposure.

 

[Gazi]

That's a strange news coming out of the blue

I am not sure about its implications but I do hope it turns out to be a great success for Pakistan. It will surely help Pakistan Stock Exchange come out as a bigger Stock Exchange at International Market but how significant, only time will tell

I am afraid this is not a good decision because Karachi Stock which was the largest Stock exchange in Pakistan have a monopoly of 5 large Brokers and they manipulate the corporate wealth as they pleased now after combining all stock exchange all the remaining corporate wealth would also come under their radar and most likely they would be able to grab remaining wealth as well.

 

[RazorMC]

What will the effects of merging KSE with smaller exchanges entail for listed businesses in Pakistan?

I am afraid this is not a good decision because Karachi Stock which was the largest Stock exchange in Pakistan have a monopoly of 5 large Brokers and they manipulate the corporate wealth as they pleased now after combining all stock exchange all the remaining corporate wealth would also come under their radar and most likely they would be able to grab remaining wealth as well.

This is what stock exchanges do anyways. Isn't it?

 

[Gazi]

What will the effects of merging KSE with smaller exchanges entail for listed businesses in Pakistan?

Not much as other Stock Market shares of Corporate wealth is way too limited against KSE's share. Most of Pakistani Businesses stay away from Stock Market especially Sethiya once because they are vary of external Interventions in their businesses. So I dont think they would be listing their company anytime soon and what ever left of Corporate would also goes to those 5 major Brokers as well in the name of Centralizing corporate Wealth strategy hence making them more influential then the Govt. Itself.

 

[RazorMC]

Not much as other Stock Market shares of Corporate wealth is way too limited against KSE's share. Most of Pakistani Businesses stay away from Stock Market especially Sethiya once because they are vary of external Interventions in their businesses. So I dont think they would be listing their company anytime soon and what ever left of Corporate would also goes to those 5 major Brokers as well in the name of Centralizing corporate Wealth strategy hence making them more influential then the Govt. Itself.

There may not be any centralizing. Just an MoU to operate as one unit with their own respective boards as before.

This is what I heard so far. It seems unlikely any major player in this industry would relinquish authority or its advantage point.

Article in DAWN