PSX Takes Steps to Energize Trade Activities

Pakistan Stock Exchange (PSX) has included 28 additional listed companies provided by banks and brokerage houses after the apex regulator softened rules for its selection criteria.

This move is aimed at increasing the credit limit available for investors, energize trade activities and support uptrends at the bourse after it suffered a massive fall in 2017 to be the worst-performing market in the world.

PSX’s move now takes the number of securities eligible for Margin Trading System (MTS) – a financing product – to 56 from 28 last month. The product is operated under the management of the National Clearing Company of Pakistan Limited (NCCPL).

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The Initial VaR based margins on securities in Category B will be VaR +15%, additional margins should be deposited in the form of 50% Cash and 50% in Margin Eligible Securities.

Category ‘A’ enlists only those stocks that have been traded in a minimum 90% trading sessions under the review period.

Securities to be included in Category, Effective from February 12

  • BYCO Byco Petroleum Pakistan Limited
  • KAPCO KotAddu Power Company Limited
  • LOADS Loads Limited
  • LUCK Lucky Cement Limited
  • MUGHAL Mughal Iron & Steel Industries Limited
  • PRL Pakistan Refinery Limited
  • TREET Treet Corporation Limited

Regulations have been softened for stocks that have traded at a minimum of 70% sessions to fall under category ‘B’,

The stocks in both categories are from among the top 100 companies grouped in the PSX benchmark KSE-100 Index.

Securities to be Included in Category B, Effective from January 22

  • AICL Adamjee Insurance Company Limited
  • ASL Aisha Steel Mills Limited
  • BAHL Bank AL Habib Limited
  • CHCC Cherat Cement Company Limited
  • DOL DesconOxychem Limited
  • EPCL Engro Polymer & Chemicals Limited
  • HMB Habib Metropolitan Bank Limited
  • INIL International Industries Limited
  • KOHC Kohat Cement Company Limited
  • LOTCHEM Lotte Chemical Pakistan Limited
  • NRL National Refinery Limited
  • PIBTL Pakistan International Bulk Terminal Limited
  • PIOC Pioneer Cement Limited
  • POL Pakistan Oilfields Limited
  • PTC Pakistan Telecommunication Company Ltd
  • SEARL The Searle Company Limited
  • SNGP Sui Northern Gas Pipelines Limited
  • SSGC Sui Southern Gas Company Limited
  • STCL Shabbir Tiles & Ceramics Limited
  • STPL Siddiqsons Tin Plate Limited
  • WTL Worldcall Telecom Limited

Securities to be Excluded from Category A and Included in Category B Effective from March 12

  • GATM Gul Ahmed Textile Mills Limited

The lists of eligible securities will be applicable from the opening of March 2018 Deliverable Futures Contracts ie DFC-March 2018 Contract and May 2018 Cash Settled Futures Contracts ie CSF-May 2018