The Bond Automated Trading System (BATS) would be launched at the Karachi Stock Exchange (KSE) next month. Adnan Afridi, Managing Director of Karachi Stock Exchange (KSE) while talking to media at a ceremony held at the exchange on Wednesday said that another product namely Securities Lending Borrowing (SLB) is also expected to be launched at the local bourse in September.
He pointed out that the MSCI would review Pakistan inclusion in the Emerging Market Index by early next year. He said the new listings could generate more trading activities at the local bourses. He was of the view that the privatisation of large public sector entities and their listing at the stock exchange could increase free float and trading activities.
He said there should be four to five large listed entities having big free float at the exchange to qualify for the MSECI Emerging Market. "Due to absence of the large companies having free float less than required level, Pakistan was excluded from the MSCI EM Index", he added. He pointed out that KSE had become the institutional market. According to Afridi, over 80 percent to 90 percent trading was being done by the institutions.
"There is a challenge for us to make the local bourse a retail market," he said. On a query, Afridi said the Trading Affairs Committee of Karachi Stock Exchange is reviewing the concept paper of margin financing. In this regard, he said, the committee''s approval would be final and there is no need of approval of KSE Board of Directors. He said that KSE always holds different programmes for the awareness of brokers and investors before launching any new product.