PSX to Launch New Trading System Acquired from the Shenzhen Stock Exchange


ISLAMABAD: The Pakistan Stock Exchange (PSX) will launch a new trading system this month acquired from the Shenzhen Stock Exchange (SZSE), the exchange’s managing director said.

The SZSE is one of three Chinese exchanges – along with the Shanghai Stock Exchange and the China Futures Exchange – which has a 40% stake in the PSX, Arab News reported.

PSX signed a $ 5 million contract with SZSE in November 2019 for the acquisition of Trading and Surveillance System in order to improve its operational and technological level. Its implementation was scheduled for the first time in March 2021.

“We plan to launch in the month of October. There were certain requirements that our stakeholders had requested to be incorporated into the trading system which have now been implemented, ”PSX Managing Director Farrukh H. Khan told Arab News earlier this week.

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The system should make the PSX more transparent and attractive. “The system will dramatically improve our trading capabilities and our ability to introduce new products like options,” Khan said. “We will have an appropriate monitoring system and the robustness of a much better system. “

The stock exchange’s benchmark KSE 100 fell 25.61% in April 2020 and hit the lowest level of the year at 27,228.80. The index recovered some of the losses over the following months.

The Pakistani stock exchange was named the best stock exchange in Asia and the fourth best performing market in the world in 2020 by Market Currents, a New York-based financial market research firm.

However, last month Morgan Stanley Capital International (MSCI) lowered the PSX of its Emerging Markets Index (EMI) to that of Frontier Markets (IMF), following a continued decline in its companies’ stock prices. listed.

In 2017, the benchmark KSE 100 peaked at 53,000 points with a market capitalization of $ 100 billion. However, market capitalization has fallen over the years to $ 45 billion, with a 17% decline in the past four months.

“This (downgrade) was mainly due to the size of the market capitalization which has shrunk,” Khan said. “Rising oil prices, which have doubled in recent days, the situation in Afghanistan, rising interest rates and the rupee have remained under pressure and the MSCI reclassification has generally created negative impacts on the market. actions.”

“The Pakistani stock market has given an average return of 19% in dollars over the past 20 years,” Khan concluded.

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