Karachi: Pakistan Stock Exchange (PSX) has announced its plan to divide its business into two segments to enhance earnings from both trading activities and real estate asset management. The PSX will manage the exchange operations, while its wholly-owned subsidiary, the PSX Financial Centre, will manage the real estate assets, news sources reported on February 22.
The board decided in principle to divide PSX into exchange operations and demerged or real estate assets. 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 move is expected to allow for a greater focus on trade activities, increase the number of investors, and improve the performance of both segments.
The proposal is subject to approval from the Securities and Exchange Commission of Pakistan (SECP) and the company’s majority members. As per the sources, the PSX Board decided to diversify the earnings and attract more investors to the underutilised real estate sector. This new move will help enlist new Real Estate Investment Trusts (REITs) in the country for better infrastructure development.
It is worth noting that PSX recently announced the inclusion of more REITs on the daily stock exchange board in order to increase cash flow. The government has also made it possible for expats to invest in POSX using their Roshan Digital accounts.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
