Managing Director of Pakistan Stock Exchange (PSX) Ltd, Nadeem Naqvi has stated that international companies including Shanghai Stock Exchange (SSEA) have expressed interest in acquiring a stake in PSX. According to Nadeem Naqvi, the company is interested to buy a mammoth 40% stake in PSX. However, Pakistani bourse is currently looking for a strategic investor.
While talking to the Reuters, Nadeem Naqvi stated:
“By late August, early September expressions of interest were received, including from Shanghai Stock Exchange”
However, Shanghai Stock Exchanged refused to comment on the subject when they were approached to comment on the same.
Highest recorded points of PSX
PSX index closed at the record highest ever with 40,542 points on 1st October 2016. The index saw a massive upsurge of 246.29 points. It cannot be predicted whether the surge in the index was the result of SSEA in PSX. However, it can be safely said that PSX has managed to attract international interest by performing well.
In addition to the improvement, PSX was also declared as the best performing Asian stock market in the 3rd quarter. The foremost reason of this announcement was PSX’s continuous improvement.
Furthermore, Forbes also reported last month that Pakistan’s recently outclassed its neighbor including China and India in terms of equity market.
One of the media houses reported that Pakistani officials have made it clear that no less than 15% and no more than 40% of the stock will be sold.
“If the sale involves a stake of anything in between, the bourse would have to sell the balance to other institutions to meet the 40 percent cap”
Interest companies who are willing to acquire some stakes in PSX can submit their bids by 21st October 2016. The final decision may well take place early next month.
What will be the eventual outcome of this scenario? Will Shanghai Stock Exchange be able to acquire some stakes of PSX? Also let us know if you have anything to add to the story!