Pakistan Stock Exchange (PSX) is the leading bourse from Pakistan made by the amalgamation of Lahore, Karachi and Islamabad stock exchanges. Regardless of all the political tension at the border, the Pakistan Stock Exchange (PSX) bloomed the entire week with PSX-100 index going above 40,000 level again and up by 1.9 percent. Gaining 760 points, PSX-100 index raised high and closed at 40,542 points.
This thriving state of the market further boosted when Nikkei Asian Review reported that Shanghai Stock Exchange has made an offer to buy a stake in Pakistan Stock Exchange.
Nikkei Asian Review is a renowned business magazine covering stories on political matters, economy, business and international affairs. The authenticity of the magazine is verified by its team of prominent analysts from around the world. Sources of Nikkei Asian Review are considered as legitimate as any.
According to the report published in Nikkei Asian Review, a market operator from China, Shanghai Stock Exchange (SEE) is interested in buying up to 40% share in Pakistan Stock Exchange (PSX). SEE is a big fish in the stock market having the world’s fourth largest market cap.
If this deal is done, history will be made in China as it will be the very first purchase by a Chinese stock exchange in any foreign stock exchange. Pakistan Stock Exchange (PSX) will have the honor of signing this marking deal.
Although the offer has not been made public yet but the word is spreading around. Shanghai Stock Exchange (SEE) holds a neutral stance about the offer “for now, but they do not deny the submission of a letter of intent for buying the stocks in PSX.
In his interview with The Nikkei Asian Review, Ayyaz Afzal conversed about the letter of intent by SEE. He is the former CEO of the Pakistan Stock Exchange (PSE) and director at National Clearing Company, a division under the Pakistan Stock Exchange. He acknowledged the letter and revealed another possible offer from a stock exchange company in the Middle East saying:
Shanghai is one of two stock exchanges who submitted us letters of intent
Mr. Afzal remained hopeful on receiving more letters of intent by December. Articulating his belief in the abilities of PSX and going through with the deals he said
Before March 2017, I think there will be some positive news about the strategic investor.
Pakistan Stock Exchange is indeed a gem in its capabilities and emerging position. This September, PSX was declared Asia’s best-performing stock market in the third quarter. Pakistan is all set to build new relations with China under the Chinese government’s “One Belt, One Road” initiative. This deal may initiate large flows of private Chinese funding into Pakistan. Pakistani staffer at the U.S. Agency for International Development in Islamabad had to say:
We very much welcome all the involvement of China, as it is now only China which helps our economic development