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PSX DEAL WITH CHINA A MAJOR STEP TO IMPLEMENT 'ONE BELT AND ONE ROAD' STRATEGY AMID HELP BOOST CPEC PLAN - Interview with Syed Ali Raza Bukhari - CEO, Vector Securities (Pvt) Limited.

Byline: KHALIL AHMED

PAGE: WHAT IS YOUR TAKE ON CHINESE INVESTMENT IN PSX?

SYED ALI RAZA BUKHARI: The investment is a major measure to implement China's "One Belt and One Road" strategy and boost the construction of China-Pakistan Economic Corridor (CPEC). This strategic collaboration will indeed strengthen its roots in a diversified array of PSX at all corners such as developing multi-tier stocks, bond and derivatives markets, enhancing technological capabilities, improving investor's cognitive ability and cementing the protection of investors, in a bid to further propel the already robust growth of the Pakistani capital market.

PAGE: WHERE DO YOU SEE PSX MOVING IN NEXT COUPLE OF YEARS?

SYED ALI RAZA BUKHARI: "One Belt and One Road" strategy is indeed poised to bring in robust growth on all fronts in the coming years. The overall momentum is already indicating an upward trend in the market. This synergy will not only bode well for the market depth, but would also help in expanding the breadth of the market by adding new products, technology and investor relations. An exchange that is ranked 4th by the WFE (World Federation of Exchanges) in terms of market capitalization and turnover will definitely have a trickledown effect in times to come.

PAGE: WHICH SECTOR MAY PERFORM WELL ON PSX DUE TO THE FOREIGN STRATEGIC INVESTMENT?

SYED ALI RAZA BUKHARI: When there's glory there's glory for all. I personally feel that this synergy will have a positive effect across the board on all sectors albeit more on few than others, but growth will definitely be witnessed across the board. Based on the strategic alliance certain sectors do seem to be of more interest, based on the "One Belt and One Road" strategy. Nonetheless, it won't be fair to undermine any sector at this stage as our inclusion in the MSCI in May 2017 is an impetus and a cherry on top that cannot be ignored and would steer broad based rally.

PAGE: HOW WOULD YOU COMPARE PSX WITH INDIAN AND CHINESE EXCHANGES?

SYED ALI RAZA BUKHARI: I think let the numbers say it all:

Exchange###Dividend Yield###P/E###Market###Listed

###Capitalization###Companies

Pakistan Stock Exchange###5%###11x###USD 100 Bio###550

Bombay Stock Exchange###1.50%###19x###USD 1,500 Bio###3,000

Shanghai Stock Exchange###2%###15x###USD 4,200 Bio###1,200

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Publication:Pakistan & Gulf Economist
Geographic Code:9CHIN
Date:Feb 5, 2017
Words:455
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Next Article:INDUSTRIAL PHASE OF CPEC TO BRING NEW OPPORTUNITIES AND CHALLENGES FOR LOCAL INDUSTRY.
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