LAHORE, Nov 23: Urging the bourses to expand their base of retail investors, Finance Minister Shaukat Aziz on Friday said the government had directed its various agencies, banks and insurance companies to invest in stocks a small percentage of the funds available with them for investment.

Speaking at the launch of the Internet Trading System at the Lahore Stock Exchange, the minister said the Employees Old Age Benefits Institution (EOBI) will invest a small percentage of its funds in the stock market as a long-term investors.

Similarly, he said the National Investment Trust (NIT) had also been asked to revitalize its investment in the stocks. He said the decision was part of the government efforts to support the capital market in the country. He said the government was also supporting the bourses by privatizing the public sector units through the stock exchanges as was done in the case of the NBP.

He asked the bourses to expand their retail base because it were retail investors who provided the engine for growth. He said internet trading would help the bourses in this respect by allowing small investors living in the remoter towns and cities within the country as well as overseas Pakistanis to access the stock markets and invest in them.

Shaukat Aziz said the government was trying to reform the capital markets and improve the governance of the bourses through the Securities and Exchange Commission of Pakistan for several months to restore investors confidence in them. He said the government efforts would bring transparency in the working of the bourses.

Earlier, LSE chairman Dr Yasir Mehmood informed the audience that the LSE had now 609 companies with a capital of Rs220 billion on it as against 130 companies with a capital of 2.5 billion in 1970 when the exchange was established. He said the market capitalization of the LSE was around Rs320 billion while the daily turnover stood at $6 million.

He also mentioned the measures taken by the LSE to bring more transparency in its working and restore the investors confidence in the capital markets. He said the internet trading system would go a long way in restoring the public confidence and expanding the retail base of investors.

LSE managing director Samir Ahmed explained the salient features of the internet trading system. He said the LSE had acquired the unique distinction of being one of the very few bourses around the world offering the internet trading facility.

APP ADDS: Delivering a lecture at Pakistan Administrative Staff College (PASC) the Finance Minister Shaukat Aziz said that Pakistan has emerged as a attractive country for foreign investment with the lifting of economic sanctions and improved relations with the international financial institutions.