KARACHI: Pakistan Stock Exchange (PSX) is working on dividing its business into two segments, the facilitation of trade activities and real estate assets management.
As per the details, the aim is to enhance the earnings from both segments as the board of directors has authorized PSX to agree with its wholly-owned subsidiary, PSX Financial Centre, to create two separate businesses.
The details suggest that the PSX will manage the continuing undertaking (exchange operations) while PSX Financial Centre will manage the demerged undertaking (real-estate assets).
Furthermore, the real-estate assets are currently underutilized, and separating the core exchange operations will allow for greater focus on trade activities and increase the number of investors at PSX.
According to officials, the separation will also enable the PSX management to pay more attention to trade activities and increase the number of investors at PSX.
The new arrangement is subject to the Securities and Exchange Commission of Pakistan’s approval, the agreement of the company’s majority members, and the fulfillment of related legal requirements.
The move is part of a continued effort to separate different operations to improve their performance.
PSX officials have confirmed that the move is aimed at improving earnings from both the real estate assets and core business segments.
