COMSATS Institute of Information

Technology, Sahiwal

Topic
Impact on investment by merger of Lahore stock exchange,
Karachi Stock exchange and Islamabad stock exchange in
Pakistan Stock Exchange

Submitted To
Dr. Khurram Abbas
Submitted By
Mr. Abusufian Rasheed
Program
Masters in Business Administration
Course
Investment Analysis and Portfolio Management
Registration
SP16-MB1-007

Submitted Date
October 19, 2016

Impact on investment by merger of Lahore stock exchange, Karachi Stock

exchange and Islamabad stock exchange in Pakistan Stock Exchange
11th January 2016 is the most important day in the history of Capital Markets of
Pakistan, this day marks the inaugural of much-awaited merger of 3 major stock
exchanges of Pakistan, Lahore stock exchange, Karachi Stock exchange and
Islamabad stock exchange.
Key features of Pakistan Stock Exchange
The symbol of Pakistan Stock Exchange will be PSX
Pakistan Stock exchange will open doors for international investors in

capital markets of the country.

Lahore Stock Exchange will become an investment banking entity
Islamabad Stock Exchange will become a real estate dealing entity
Investors will need to pay less commission to brokers
Trading volume will increase
Investors from small areas will have access to the capital markets
Technological advancement will be introduced (Mobile trading)
Number of investors will be increased
400 brokers will have the same platform
Trading execution will be made more efficient

Pakistan Stock Exchange Impact on investment

Global Investors are already in talks with the stake holders of Pakistan stock
exchange for potential investment in the future. Stock Exchanges like Istanbul
stock exchange, London stock exchange and Qatar Stock Exchange amongst the
most prominent investors to invest in Pakistan Stock Exchange.
This merger will have a massive impact on the financial markets of Pakistan and
will open doors for global investors. Pakistans economy is making progress in the
right direction and with this merger Pakistan can expect inclusion in the emerging
markets index in the future.
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 levels
again and up by 1.9 percent. Gaining 760 points, PSX-100 index raised high and
closed at 40,542 points. (Nazim, 2016)

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 worlds 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.
Pakistan Stock Exchange is indeed a gem in its capabilities and emerging
position. This September, PSX was declared Asias best-performing stock market
in the third quarter. Pakistan is all set to build new relations with China under the
Chinese governments One Belt, One Road initiative. This deal may initiate large
flows of private Chinese funding into Pakistan. (Nazim, 2016)

Works Cited
Nazim, N. (2016, October 3). National . Retrieved October 4, 2016, from Yum to
Yikes: http://yumtoyikes.com/2016/10/03/shanghai-stock-exchange-plansacquire-40-percent-shares-pakistan-stock-exchange/