Karachi: In a landmark move designed to enhance market accessibility and efficiency, the Pakistan Stock Exchange (PSX) has fully transitioned to a One-Share Lot system for trading, effectively aligning with global best practices in the stock market. This strategic shift, which commenced on April 19, 2024, aims to democratize the trading environment by making it easier for investors to participate in the stock market, regardless of their investment size.
According to Pakistan Stock Exchange Limited, the transition to the One-Share Lot system was executed in multiple phases to ensure minimal disruption and maximum efficiency. This change replaces the previous variable lot sizes, which ranged from 20 to 500 shares depending on the stock price, with a uniform lot size of one share for all listed companies. This modification is expected to lead to increased retail participation, enhanced liquidity, and more balanced investment portfolios across the board.
Mr. Farrukh H. Khan, MD and CEO of PSX, highlighted the significant benefits of this initiative, particularly for small investors. He noted that the new system not only simplifies trading logistics but also enhances the market's competitiveness by making high-priced stocks more accessible to a broader audience. Additionally, the elimination of odd lot markets ensures that all shares are traded without the previously required discounts, further simplifying the investment process.
This transition is part of PSX's broader strategy to improve investor experience and market functionality, reflecting its commitment to adopting cutting-edge practices that support economic growth and market development in Pakistan.