LAHORE, March 8: The Lahore Stock Exchange (LSE) has reduced the tick size from Rs0.05 to Rs0.01 for all shares valued Rs25 or below with effect from January 1, a press announcement said on Monday.

The announcement said the decision had been taken with the rationale that for lower priced stocks, a tick size of Rs0.05 represented a proportionately higher percentage in value.

Reduction in tick size to Rs0.01 for all shares valued Rs25 or below has been a major success, and volumes in these shares was 1.469 billion shares - 36.8 per cent of total volume of shares - in the month of January, and 1.003 billion shares - 32.6 per cent of total volume - in the month of February.

"It had increased the accuracy in establishing fair value of stocks and helped efficiency in the market," the LSE said. The step has enabled the market participants to put orders at finer rates and improved the price discovery mechanism at the LSE, it said.

LSE chief executive officer Samir Ahmed said the LSE directors would review the results after six months with a view to possible expansion of the measure to stocks valued above Rs25 also.