Pakistan Stock Exchange (PSX) Runs Seamless Amid COVID-19: MD PSX

At a time when some of the regional and Asian markets were closed down amid COVID-19 (Coronavirus) outbreak, the Pakistan Stock Exchange (PSX) managed to deal with the situation effectively due to various measures adopted by it, Managing Director PSX, Farrukh H. Khan said

ISLAMABAD, (UrduPoint / Pakistan Point News - 2nd May, 2020 ) :At a time when some of the regional and Asian markets were closed down amid COVID-19 (Coronavirus) outbreak, the pakistan stock exchange (PSX) managed to deal with the situation effectively due to various measures adopted by it, Managing Director PSX, Farrukh H. Khan said.

In an exclusive interview with APP, the psx MD attributed the smooth functioning of the exchange to Securities and Exchange Commission of Pakistan brokerage houses and associated companies.

"I would attribute the functioning of the PSX smoothly to the assistance and guidance from SECP and coordinated efforts from the Brokerage Houses and our associated companies in the ecosystem who worked in synchronization to make it all happen," he said.

In addition, he added that the Chinese Exchange counterparts of the exchange assisted PSX in devising protocols and Standard Operating Procedures (SOPs), which have been instrumental in ensuring measures to keep the market functioning seamlessly.

These guidelines, he added, helped the operational activities and trading platforms of PSX to continue to function normally in these trying times while ensuring safety and protection of staff and employees of PSX.

Likewise, he added, the PSX was one of the first organizations in the country to have implemented remote access and work from home facilities for its employees and that business continuity plans were in place, whilst keeping its employees safe.

The processes for remote access had also been organized for the Brokerage Firms so trading activities could continue seamlessly end to end through the trading cycle.

He said that it was a disturbing situation with the threat of covid-19 virus pandemic and the resulting fall of markets taking place globally. However, he added, even before the lockdown, the PSX took charge of the situation with having necessary precautions in place at the Exchange to arrest the possibility of spread of the virus, while making sure that business continuity plans are re tested and in place.

The exchange administration initiated certain administrative measures early on prior to the lock down, including manual attendance system, checking the temperature of all visitors to PSX, installed hand sanitizers, reduced foot-fall and reduced attendance by 50% of staff at the exchange by providing remote access to employees to work from home.

During this period, the PSX management, under the guidance of the SECP and coordination with its associated companies and SROs, NCCPL & CDC, as well as TREC holders, undertook exercises of trading and technology functionality and risk management process drills to ensure business continuity, whilst ensuring safety of all its employees.

So it had already made preparations of business continuity at the exchange even before the lockdown was announced by the Sindh Government.

It is for this reason that the Exchange was able to function normally during these difficult times. Presently, only about 10-12% of staff was coming to office and all the rest are working from home.

Talking about the markets taking a downturn in the current crisis, the MD PSX told APP, "I see opportunity for long term investors to make an entry and hold long positions in order to reap the benefits of the attractive valuations now on offer at the Stock Market." He said that, the market having touched the oversold levels was now rebounding with investors re-entering the market.

So there are expecting the situation to pan out well for the investors and stakeholders in the long run, he said and added that by taking advantage of this situation, investors can re-enter the Market and let the Capital Market play its role for the betterment of the economy of the country.