SECP takes credit for PSX’s stellar streak

KARACHI: Securities & Exchange Commission of Pakistan (SECP) on Thursday attributed the equities’ stellar performance to its management-related reforms, improved framework, and the decision against closing the market during COVID-19 lockdown as well as after the terror attack.

Pakistan Stock Exchange (PSX) gained 7.2 percent in the last ten consecutive sessions. On Thursday the PSX’s traded volume swelled to 467 million shares, the highest in 147 trading sessions, while traded value also jumped 20 percent day-on-day basis to $94 million. “The recent measures taken by the SECP have been positively received by the market participants and the upward trend is indicative of improving conditions in the capital market and signals increase in investor confidence and a positive outlook,” an SECP spokesperson said in a statement.

“Trend of foreign investment also showed improvement during the first week of July, which is in line with SECPs reform initiative of responding to the needs of the capital market and promoting competition and ease of doing business.” The statement said the SECP had completely digitalised the IPO process for equity and debt issues, which has made the IPO process more easy, simple and cost effective. In a landmark achievement, for the first time the federal government raised Rs200 billion through Sukuk at less than KIBOR rate, using competitive book-building at PSX. It said lower interest rate would result in savings of Rs18 billion over 10 years in debt servicing. This transaction was oversubscribed by 70 percent and involved the team efforts of MoF, Debt Office, SECP, SBP and PSX.

“In line with our reform initiative of introducing new products, an important milestone was the launch of Pakistan’s first ever Exchange Traded Funds (ETFs) were launched at PSX on March 24, 2020 by UBL Funds and NIT,” the SECP said in the statement. The ETFs woud help increase the retail investor base, as this product offered significant growth potential due to its transparent nature, low costs and embedded ability to track the index by following a passive investment strategy.