MOU FOR LISTING OF SME WITH PSX A MAJOR STEP TOWARDS SUPPORTING SMEs
KSE-100 Index dropped yet another 180 points to close in red at 49,300 levels on the last trading session of the week on Friday.
According to market analysts the current formation on daily chart indicates that index could face a couple of bearish sessions next week before resuming the bullish momentum on the back of strong rally of the corporate financial results, at the moment the support is initially placed at 49,100 levels, however, due to broken support the index may further down upto 48,700 that would be the second support zone.
Meanwhile signing of MoU between Pakistan Stock Exchange and SMEs was a major development last week under which SMEs would be able to get listed at the bourse and raise financing for their projects. The PSX is finalizing the launch of its SME Board, which will provide a platform for businesses to raise equity capital to fund their growth and expansion requirements. The MoUs were signed with Small and Medium Enterprises Development Authority (SMEDA) and Islamabad Chamber of Commerce and Industry (ICCI) for mutual cooperation and collaboration to facilitate access to equity financing for SMEs.
According to endeavor being taken to make the listing procedure simple and easy. A public company with post-issue paid up capital of not less than Rs25 million and not more than Rs200 million is eligible to get listed on the SME Board. Meanwhile, to reduce listing cost, the listing fees of the exchange has been capped at Rs50,000.