DUBAI: The interest by the Dubai stock exchange to take a 40 per cent stake in the Karachi stock exchange (KSE) when the Karachi market allows shareholding, represents a firm change for the interests of investors in Pakistan’s main stock market. The state-run Dubai stock exchange said in August it was interested in buying into the KSE but gave no details then about the size of the stake that was being sought.
Under the planned acquisition, members of the Karachi stock exchange will become shareholders in the stock market once a key presidential ordinance is signed to allow the change in the ownership provisions. It is clear that the Karachi stock market has become a global entity within its own right with sentiment lifted by the worldwide interest from investors. In spite of Pakistan’s political turmoil of the past year, the KSE continues to attract investors from all over the world.
If the deal with the Dubai stock exchange is firmed up, the two markets stand to gain. For the KSE this will represent not just an expanded ownership by a premier stock exchange but also the recognition which goes with that change. For the Dubai stock market, the acquisition helps it to establish formal ties with a stock market close to home at a time when the Middle East region as a whole is benefiting from the robust flow of oil money.-SANA