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KARACHI: Securities and Exchange Commission of Pakistan (SCEP) Chairman Zafar Hijazi asked stock market stakeholders on Thursday to reassure investors that political events are passing matters and that they should concentrate on market fundamentals.
Chairing a meeting of stakeholders at the Pakistan Stock Exchange (PSX), Mr Hijazi recounted measures that the apex regulator has taken for stock market growth.
Asking not to be named, a participant of the meeting told Dawn that market seniors reiterated their demand for allowing Chinese strategic investors to raise their stake in the PSX up to 51 per cent from 30pc. The SECP chairman assured the participants that he would place the matter before the next meeting of the Commission for consideration.
Mr Hijazi pointed out that the apex regulator, in liaison with market players, had in the recent past attained several objectives, including the integration of three stock exchanges, divestment of the PSX to the Chinese investors, inclusion in the MSCI Emerging Market Index, higher compliance level with the International Organisation of Securities Commissions’ benchmarks and the self-listing of the PSX. “All these reforms have helped in the image-building of our market and the country,” said the SECP chairman.
Market participants complained about some harsh measures in the latest federal budget. Mr Hijazi said he had already taken it up with the ministry concerned.
Some participants demanded that 40pc shares of the PSX that are held by the brokers in a blocked CDC account should be treated as a security for the calculation of the stockbrokers’ Base Minimum Capital.
A press release issued by the PSX stated that the meeting participants deliberated on various areas that possess huge potential for further development and growth of the market. Those included the debt market, derivatives and new listings.
The SECP chairman stated that investors’ education and new products were essential for the deepening and widening of the market. He emphasised that all market intermediaries need to play their due role in tapping these areas and work together towards its advancement.
“The stock exchange and market participants must take measures for creating awareness and ensuring market access to the masses,” he said.
Mr Hijazi expressed his satisfaction over the risk management regime currently in place. He said the SECP was closely monitoring the market.
Published in Dawn, July 14th, 2017
