AKD chief stresses days of speculative trading on bourse are gone.
It is impossible to buy and sell shares on the Karachi stock market using black money, declared AKD Group Chairman Aqeel Karim Dhedhi while speaking to journalists after laying the foundation stone of the Karachi Stock Exchange’s (KSE) new building on Monday.
Complaining about the ‘negative’ coverage that the stock market receives in the media, Dhedhi said trading on the KSE is purely based on merit unlike many other markets globally. “That’s why foreign investment is higher than local investment,” he said, referring to the recent bullish trend that many people attribute to increased foreign inflows.
“There is not even 1% chance that black money is invested here. The KSE is perhaps the only institution in Pakistan where you can access even 20-year-old record in a matter of minutes,” he said, adding the days of ‘speculative’ trading on the bourse are over.
Speaking about the new building, the AKD chairman said even the new building will be inadequate to meet the needs of the KSE after five to 10 years. “The new building will suffice for the time being. But given the expansion in the equity market, I think we will need another building after a few years,” he said.
Suggesting that the government should raise money through selling stakes in government-owned companies through the stock exchange, he said doing so will help the government increase foreign exchange reserves.
He said the government ended subsidy in the last budget, which is resulting in inflation. “But doing away with subsidies will bring the deficit under control, thus strengthening the rupee in the long run. Next quarter may be tough, but next year will surely be better,” he added.
Speaking to The Express Tribune, KSE Deputy Managing Director Haroon Askari said the new building will have ground-plus 10 floors. It will be completed in 18 months at a cost of Rs100 million, he added.