Pakistan Stock Exchange launched

ISLAMABAD:

The Pakistan Stock Exchange formally started functioning in Karachi on Monday after a merger of the stock exchanges of Karachi, Lahore and Islamabad.

Finance Minister Ishaq Dar inaugurated the combined exchange at a ceremony in Islamabad on Monday.  The index of Pakistan Stock Exchange is PSX.

Calling it a ‘historic day’, Dar said it had taken 15 years to make this happen. “The formation of a single national stock exchange will send a positive message abroad and will attract foreign investors in the country’s capital market,” he added.

The minister hoped the PSX management would focus on good governance and transparency as it would help improve the country’s market performance. He vowed the government would continue to take bold initiatives for the country’s economic development.

He also asked the political parties not to indulge in politics over projects of national importance.  “All political parties should get together and work jointly for resolving challenges faced by the country for its betterment,” Dar said.

PSX Chairman Munir Kamal said the stock merger was a ‘watershed’ event for Pakistan’s capital market.

“Foreign investors are also taking keen interest in our capital market because of Pakistan’s rapidly improving economic situation,” he claimed.

He added that the performance would improve after the formation of one national stock exchange. Islamabad Stock Exchange Board Chairman Mukhtar Hussain Jaffri said the decision to merge the three stock exchanges was taken with mutual consultation and the concerns of stakeholders have been addressed.

The integration of three exchanges has completed the second phase of the Stock Exchanges Demutualisation and Integration Act, 2012, passed by a joint session of parliament.

Despite the seemingly jubilant mood, the brokerage community is showing some signs of bitterness with the integration of the bourses. 

Published in The Express Tribune, January 12^th, 2016.