New listings will help integrated stock exchange

LSE MD says Lahore is ready to welcome new investors

LAHORE: Last month, officials signed a MoU, moving a step closer to integrating the three stock exchanges of the country into one Pakistan Stock Exchange (PSE).

As investors weigh in on this announcement, a clear division can be seen among market analysts.

Talking to The Express Tribune, Lahore Stock Exchange MD  Aftab Ahmad Chaudhry said  the success of the PSE depends on an efficient strategy aimed towards the growth of investors’ portfolio as well as new Initial Public Offerings (IPOs) of emerging companies.

He admitted that the integration of the three stock exchanges would help brokers and investors. “However, the success of PSE will depend on how the new management would reach potential investors beyond Karachi.”

Chaudhry said the integration was part of the process which had been initiated in 2012. “We were told to sell 40% of our stakes to foreign investors; unfortunately none of the exchange got any success.”

He added that now whoever acquires the 40% stake in the central exchange as a strategic investor should be welcomed. “In current circumstances, we need a strategic investor more than they need us”, he added.

The LSE management has managed to list a few companies on the bourse, through their marketing campaign. LSE MD believes that this pattern should continue especially in Punjab to make PSE a success.

Rather than wait for the company, the PSE management should depute experienced officials in Lahore to convince emerging companies to enlist on the stock exchange, added the official.

“The technique to run exchanges should be changed. In Lahore, PSE must hire senior management who can create investor awareness over IPOs. It takes around two and a half years for a company to position it.

The writer is a staff correspondent

Published in The Express Tribune, September 14^th,  2015.

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