Is­lamic banks’ en­list­ment to pro­mote ha­lal in­vest­ment: LSE CEO

The Pak Banker - - COMPANIES/BOSS -

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.

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