Chairman PSX Hopeful After Current Visit Of Dr. Hafeez Shaikh To Karachi, Expects Change From Monday
• Senior journalist Kamran Khan talks about the condition of PSX and currency devaluation rates.
• He says that the dollar rate saw an increase of 3 rupees and approaches to about 150 PKR as of today.
• The Pakistani rupee is devalued to about 6 per cent and today’s trading rate was between 150 to 151 PKR in the open market.
Chairman PSX Pinpoints the Chances of Improvement in Pakistan Stock Market for the Next Working Days:
Adviser to Prime Minister on Financial Affairs Dr Abdul Hafeez Shaikh meets the business stakeholders in Karachi:
Adviser to Prime Minister on Financial Affairs Dr. Shaikh explained the deteriorating situation of business and economy in the country and tried hard to overcome the prevailing economic overhaul. He discussed the ways to develop confidence in the market and also gave directions to SECP regarding the betterment of the existent economic situation.
Chairman PSX Sulaiman.S.Mehdi talking about the ‘doer’ attitude of Dr. Abdul Hafeez Shaikh:
Chairman PSX Sulaiman Mehdi told about the work-active attitude of Dr. Sheikh and explored the main agenda of meeting with Finance Adviser.
“He means business and he wants to get this implemented” – he added.
“The work is being accomplished on war footings and results would be visible soon” – he further said.
Three points agenda put forward by chairman PSX:
• Fast track approval of listed companies buyback regulations 2019.
• Relaxation to ready future market which plays the role of the market maker.
• Establishment of Capital Market Support Fund.
Fast track approval of listed companies buyback regulations 2019 was the first demand of PSX chairman. Under these regulations, the company can purchase its own shares up to 10 per cent incase the company’s shares are undervalued. This develops confidence and price discovery within the market.
Dr.Shaikh was also asked to increase that limit of 10 per cent on which he also conversed with the Security and Exchange Commission of Pakistan (SECP). Ready future transactions which play the role of market maker in PSX were given relaxation and they’ll surely contribute to market value from the next working days.
Dr Sheikh was asked to create a Capital Market Support Fund on which he conferred acceptance. He was convinced by giving the example of National Income Tax State Enterprise Fund 2009 which proved beneficient not only for the government and its inverters but for the companies and market recovery as well.
At that time, fund of about 2 billion rupees was established in which government generated the profit of about14 billion rupees after principle repayments of 17.2 billion rupees. This has been a successful experiment in the history of Pakistan Stock Exchange.
Conditions of Pakistan Stock Market:
The condition of PSX has been very inconsistent today. PSX witnessed a major collapse and market ends 804 points lower which ultimately devalued it to about two and a half per cent. The dollar rate saw an increase of 3 rupees and approaches 150 rupees today. Pakistani currency is further devalued to six per cent and today’s trading rate in the open market ranges between 150 to 151 rupees.
The main goal of today’s activity was to bring about the confidence within the PSX and to revive the investor’s trust.