KARACHI: Pakistan Stock Exchange (PSX) has successfully transitioned to a One-Share Lot system for investor transactions on the regular market, aligning with international best practices for stock market investments, managing director and CEO, PSX Farrukh H Khan said.
While briefing reporters at PSX Auditorium here on Tuesday he said PSX had performed exceptionally well to become one of the best equity markets in the world.
During financial year 2023-24, the PSX has witnessed highest new listings in last seven years, he said adding that six to seven more new listing is expected in coming days.
He said trading volumes have also increased which show increasing interest of retail investors at the equity market.
He said the commencement of government debt securities trading at stock market is another very positive development for investors. The government had raised Rs 100 billion in the last auction while it had raised Rs 650 billion during last financial year.
Raeda Latif, Head of Marketing and Business Development PSX said that the PSX has successfully transitioned to a One-Share Lot system for investor transactions on the regular market. Previously, the minimum marketable lot sizes for listed companies varied from 20, 50, 100, and 500 shares based on their prices.
She said now investors can select 1, 5, 22, 37 or any amount of shares when they plan to invest in the Stock Market.
However, she said, the one share lot is not applicable to the Futures market, ie, DFC’s and ETFs
Equities ETFs (UBLPETF, NITGETF, NBPGETF, MZNPETF, JSMFETF, ACIETF, JSGBETF and MIIETF) and Fixed Income ETF (HBLTETF) continue to trade in a lot size of 500 shares in the ODD Lot market. Deliverable Future Contracts (DFCs) continue to trade in a lot size of 500 shares.
Raeda said the new lot size is expected to offer numerous benefits to investors and securities brokers.
Regarding its key advantages, she said, this makes high-priced stocks more affordable for retail investors, particularly benefitting small investors, resulting in increased retail participation, higher liquidity and more balanced investment portfolios.
The trading volumes will also improve as high priced companies are affordable for retail investors. Investors who typically have less capital can afford a wider range of stocks than previously available in standard lots, she said adding that investors as well as Securities Brokers are not required to track frequent changes in marketable lots which would happen due to several ETF indices revisions/rebalancing.
Copyright Business Recorder, 2024