Islamic banks’ enlistment to promote halal investment: LSE CEO
Enlistment of the Islamic banks can enable majority of the investors to invest in the stocks in order to drive income from purely halal resources. Despite the weak economic conditions, Lahore Stock Exchange has been able to arrange Initial public offers (IPOs).
This was stated by Aftab Ahmed Chaudhry, the Chief Executive Officer of The Lahore Stock Exchange while talking to the economic journalists during a reception here on Tuesday.
He said, "new IPOs announcement at the LSE despite fragile economic conditions is our best achievement. Punjab has occupied a significant place among the other provinces due to its large size and population. Proximity of trade with India can enhance our exports and investment in various sectors including infrastructures, roads, hospitals and tourism in the province would lead to investment in stocks".
He informed that Systems Limited Spells and Mughal Steel are the new companies which will be enlisted with the LSE, adding that "very optimistic encounters have been undertaken with the groups like Hairs. They are interested in IPOs of their three companies." "Media can play important role in the enlistment of the companies. He said we are very strict towards the brokers and have expelled nearly 15- 18 brokers to ensure transparency. It is need of the hour to aware the investors about the benefits of the enlistment on stocks, he told the economic journalists "We are encouraging different type of companies to enlist with the LSE. Dividend to the public may prove vital to create public wealth. These companies can do a greater job by creating shareholders," he added.
He added that exports can be enhanced and end consumers can be put on ease by passing the benefits of reduced discount rate, commodity and oil prices investors who can borrow finance from banks. The Lahore Stock Exchange (LSE) 25 Index closed at a record high Tuesday, with analysts crediting falling inflation and commodity prices as well as an easing of political tensions.
The benchmark Lahore Stock Exchange index of 25 shares closed at 6,618.01 points, up 2.80 points. The previous peak of 5895.55 points came in June 11, 2014 and LSE's historical lowest was 1300.94. Now the investors' focus has shifted towards economic matters from the political affairs of the country, he added.
On the economic front official data showed that inflation had plunged to low, raising investor's hopes that the central bank might slash the basic interest rate in its next review.
"The inflation (rate) has come down to 3.96 per cent in y/y, so investors look forward to corresponding cut in interest rates. In line with the international fall in commodity prices, especially oil, the government slashed petroleum prices by an average of twenty four per cent - the largest price relief ever. Pakistan's longmoribund economy has shown some glimmers of revival under this government. Ratings agency Moody's upgraded the country's outlook to ' stable' from ' negative.