PSX among 10 best per­form­ing stock ex­changes of world: Ha­roon

The Pak Banker - - NATIONAL -

Deputy Man­ag­ing Di­rec­tor, Pak­istan Stock Ex­change (PSX), Ha­roon Askari said on Mon­day that stock ex­change was a great plat­form to raise cap­i­tal for busi­ness ex­pan­sion and growth. He said rais­ing cap­i­tal from cap­i­tal mar­ket was more ben­e­fi­cial for pri­vate sec­tor as it also in­creased the value of equity cap­i­tal of well per­form­ing com­pa­nies. He gave a de­tailed pre­sen­ta­tion to the busi­ness com­mu­nity dur­ing a sem­i­nar on the for­ma­tion of PSX and its ben­e­fits, es­pe­cially for small in­vestors.

The sem­i­nar was or­ga­nized by Is­lam­abad Cham­ber of Com­merce and In­dus­try (ICCI) in col­lab­o­ra­tion with Pak­istan Stock Ex­change (PSX) here. Ha­roon Askari said Pak­istan's stock ex­change was among 10 best per­form­ing stock ex­changes of the world dur­ing 20122015 which re­flected the ro­bust per­for­mance of cor­po­rate sec­tor where earn­ings on av­er­age have grown by over 20% per an­num in the last five years while re­turn on in­vest­ment has av­er­aged nearly 21%.

He said dur­ing the last 10 years, com­pa­nies have raised a to­tal amount of Rs.1160 bil­lion in terms of equity cap­i­tal and debt from stock mar­ket, which showed that the cap­i­tal mar­ket was play­ing an im­por­tant role in meet­ing long term fi­nanc­ing needs of com­pa­nies for growth. He said es­tab­lish­ing an in­te­grated Pak­istan Stock Ex­change would be more ben­e­fi­cial as it would pro­vide a na­tion­wide foot­print, at­tract more in­vestors and pro­vide max­i­mum peo­ple bet­ter ac­cess to the cap­i­tal mar­ket. He said Iran has four mil­lion in­vestors in cap­i­tal mar­ket, Bangladesh two mil­lion and In­dia 22 mil­lion, but in Pak­istan this fig­ure was hardly around 0.2 mil­lion, which was far less than real po­ten­tial.

He said lack of knowl­edge in peo­ple and busi­ness com­mu­nity about the im­por­tance of stock mar­ket was the main rea­son of low in­vest­ment and there was a great need to cre­ate more aware­ness in peo­ple about cap­i­tal mar­ket. He as­sured that PSX would con­tinue to play pos­i­tive role for serv­ing the in­vestors and in­dus­try for bet­ter eco­nomic de­vel­op­ment of the coun­try.

In his mes­sage, Atif Ikram Sheikh, Pres­i­dent, Is­lam­abad Cham­ber of Com­merce and In­dus­try said that the role of stock ex­change was very im­por­tant for the growth of pri­vate sec­tor as it pro­vided a good plat­form to raise cap­i­tal for busi­nesses, mo­bi­lize sav­ings for in­vest­ment and cre­ate in­vest­ment op­por­tu­ni­ties for small in­vestors. He said cap­i­tal mar­kets should come up with some good in­cen­tives for SMEs so that SMEs could raise fund­ing from cap­i­tal mar­kets eas­ily for growth and start­ing new projects.

He said many in­vestors have lost bil­lions of ru­pees in cap­i­tal mar­kets due to mar­ket crash and stressed that PSX and SECP should for­mu­late strong rules and reg­u­la­tions to en­sure full pro­tec­tion of in­vestors from mar­ket abuse so that in­vestors could in­vest in th­ese mar­kets with con­fi­dence.

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