Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

Trending :

Pakistan stock exchange to launch exchange-traded fund this year

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

ISLAMABAD, March 9 (Xinhua/APP): The Pakistan Stock Exchange (PSX) is all set to roll out the Exchange-Traded Fund (ETF) during the second half of the ongoing year, Chief Executive Officer PSX Richard Morin said on Thursday.

Speaking on the sidelines of a ceremony at the PSX trading hall to commemorate the International Women’s Day, Richard Morin said that the launch of Exchange-Traded Fund is a part of his plans to give rise to the number of retail stock investors at the top Pakistani bourse.

The derivative product called ETF will allow general investors at the PSX to buy and sell in the same traditional way which has been in place for years, Morin stated. He added that the biggest difference would be that an ETF would represent the value of a basket of listed companies instead of the traditional methodology which allows a stock to symbolize the ownership in a single company.

The PSX CEO further explained that like an index-tracking mutual fund, an ETF allows investors to have exposure to a larger number of listed companies through a single transaction. This way, investors get the benefit from any price appreciation and dividend declaration from the constituent companies, he added.

He confirmed that the PSX authorities were in negotiation with at least two financial institutions to become issuers of the ETF for its early launch at the premier equity market in Pakistan.

He pointed out that the PSX was planning to inspire more and more middle-class Pakistani investors, which are estimated at around 40 million, to select the PSX for their investment strategies.

The local investors have bolstered their investments at the PSX by eight times in the last decade, he mentioned. He went on to say that the investors who had invested a million rupees in an index-tracking fund 10 years ago now have 8 million rupees.

For the second year in a row, the Pakistan Stock Exchange held the International Women’s Day to celebrate the achievements and contribution of women to the development of Pakistan and overall society.

Three leading gender diversity promoting organizations, including U.N. Women, World Bank, and Women on Board Pakistan, performed the “Ring the Bell” ceremony at the trading hall of the Pakistan Stock Exchange.

The ceremony was arranged to express solidarity with the cause of promoting women inclusiveness and mainstreaming in the business world, said a statement issued by the Pakistan Stock Exchange.

Posted on: 2018-03-09T12:00:00+05:00