Stock market gearing up for MSCI inclusion day

KARACHI: The Pakistan Stock Exchange (PSX) has taken at least four measures to boost liquidity in the system, as it looks to smoothly settle expected trade orders worth $1.25-1.5 billion on June 1, 2017, a senior PSX official told The Express Tribune on Monday.

The PSX is all set to be upgraded into the MSCI Emerging Markets Index from Frontier Market Index on Thursday (June 1). The day is likely to see trade orders worth $1.25-1.5 billion, eight-times higher from the usual $150-180 million on average.

The market is expected to see the post MSCI EMI buying from Tuesday (May 30) onwards keeping in view the T+2 settlement system.

Institutional delivery system

The PSX has reduced the time to confirm large trade orders to 10-15 minutes from around 1-2 hours. Institutions are the ones who usually place larger orders. They are dealt through the Institutional Delivery System (IDS), the official told on condition of anonymity.

“The reduction in time to minutes would not keep brokers’ funds stuck into the system and would allow them to accept larger trade orders,” he said.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *