PSX prescribes standard range of brokerage commission
ISLAMABAD (APP): Pakistan Stock Exchange (PSX) Monday noted bearish trend as KSE 100 index went down by 289.43 points (0.84%) to close at 34186.26 points. A total of 137,932,650 shares were traded compared to the trade of 287,100,690 shares during the previous day, whereas the value of shares traded during the day stood at Rs4.799 billion compared to Rs10.566 billion during last trading day. Out of 371 companies, share prices of 103 companies recorded increase, 244 companies registered decrease whereas24 companies remained stable in today’s trading. The three top traded companies were WorldCall Telecom with a volume of 14,251,500 shares and price per share of Rs 1.11, TRG Pak Ltd with a volume of 11,608,500 and price per share of Rs 16.79 and Lotte Chemical with a volume of 9,703,500 and price per share of Rs 16.07. The top advancer was Rafhan Maize with the increase of Rs325.5 per share, closing at Rs 6835.5 while Unilever Foods was runner up with the increase of Rs305.98 per share, closing at Rs6425.95. The top decliners were Bhanero Tex with the decrease of Rs43.66 per share, closing at Rs850.01 and Pak TobaccoXD with the decrease of Rs21 per share closing at Rs2399.
Meanwhile, Pakistan Stock Exchange (PSX) Monday issued a notification for implementation of standard range/scale of brokerage commission with effect from October 14, 2019. According to the notification, the exchanged prescribed the commission range of 3 paisa per share or 0.15% of the transaction value (whichever is higher) up to 2.5% of the transaction value, besides prescribing certain flexibilities and exemptions on nature of trades and executors. The PSX and Securities and Exchange Commission of Pakistan (SECP) had observed that many brokerage houses were charging nominal or zero commission rates, which was adversely affecting true competition and creating a disadvantage for market participants in the form of disparity in service standards. This implementation of a standard range of commission would be helpful in enhancing quality standard of brokerage services including research, encouraging expansion of distribution network for brokerage services, improving proficiency and technical infrastructure of brokers and maintaining minimum level of governance and regulatory requirements. All these ensuing reasons would contribute to the economic progression and benefit investors at large in the long run.
As such, PSX, in exercise of its statutory power u/s 7(1)(w) of the Securities Act, 2015 to make regulations relating to brokerage and other charges and after following the due process including extensive consultations with all the stakeholders and with the approval of its Board and SECP introduced the standard range/scale of brokerage commission. The exchange rate of US dollar against rupee witnessed a nominal increase of 01 paisa in interbank and was traded at Rs 156.07 as compared to the last closing at Rs 156.06, State Bank of Pakistan (SBP) reported on Monday. However according to Forex Association of Pakistan the buying and selling rates of dollar in open market were recorded at Rs 155.80 and Rs 156.40.
The SBP further reported that in interbank the price of Euro appreciated by Rs 0.23 and was traded at Rs 172.21 against the last closing of Rs Rs 171.98. The exchange rate of Japanese Yen remained stable at Rs 1.44 whereas the increase of Rs 0.76 was witnessed in the exchange rate of British Pound which was traded at Rs196.23 as compared to last closing of Rs195.47. Exchange rates of UAE Dirham gained 01 paisa and were traded at Rs42.49 compared to Rs42.48 whereas Saudi Rayal also increased by 01 paisa and was traded at Rs 41.61 against Rs41.60, the data revealed.