ISLAMABAD: An honorary ceremony was held at the Pakistan Stock Exchange (PSX) to formally launch and celebrate the listing of the JS Global Banking Sector Exchange Traded Fund (JSGBETF), according to a press release issued here on Monday.
Earlier on September 11, the trading of units of JSGBETF began; that was the first ETF to be launched by a brokerage house in the country under the SECP’s Sandbox Guidelines, 2019 and the 8th ETF to be listed on the Pakistan Stock Exchange.
JS Global Banking Sector ETF is a sector-specific ETF that would track a total-return, equally weighted index, JS Global Banking Sector Index (JSGBKTI), and JSGBKTI would be reproducing stock selection criteria of PSX’s Banking Tradable Index (BKTI).
In addition, JSGBETF would track a basket of stocks within the banking sector. It is currently comprised of eight (8) banking stocks that represent about 70 percent of the listed banking sector or approximately 80 percent on free float market cap.
PSX Chief Hails JS Global Banking, SECP
While addressing the event, Chairman SECP Akif Saeed stressed the importance of capital formation through quality listings at PSX, adding that the liquidity in the market requires to be improved and more public involvement can be made possible through an increase in the free float of companies.
The Chairman apprised the participants about the Regulatory Sandbox program of SECP, which is now open throughout the year for the submission of innovative ideas.
He also expressed confidence that the launch of the Centralized Gateway Portal in the upcoming week would enhance the investor base by providing access to mutual funds, stocks, and insurance products through a single platform.
Earlier, MD & CEO of Pakistan Stock Exchange, Farrukh Khan, after welcoming the guests, congratulated SECP for promoting new initiatives under Sandbox Regulations, adding that everyone would be happy over the listing of the first ETF at PSX, which is launched by a brokerage house in Pakistan.
“Globally, there are more than 8700 ETFs listed worldwide with Assets Under Management of almost US$ 10 trillion”, Farukh Khan said.
This ETF, which focuses on a sector-specific basket of banking stocks, enhances the range of options available for investors to choose from when investing in ETFs at the stock exchange. It provides an easy and low-cost instrument for investors to avail exposure to the banking sector in Pakistan.
The CEO of JS Bank Limited, Basir Shamsie, in his remarks, said that this was a great achievement for JS Global and JS Group. He also appreciated and congratulated the JS Global for their perseverance and commitment, without which this feat would not have been possible.
