Pak brokers oppose Chinese nominee as PSX stock market MD

A number of brokers in the

Pakistan Stock Exchange are opposing the nomination of a

Canadian citizen as its managing director, following a 40 per

cent takeover by a Chinese consortium, a report said today.

The Pakistan Stock Exchange (PSX) was sold to a Chinese

consortium that now holds a 40 per cent but the arrangement

relationship seems to have hit its first real stumbling block

with some brokers and members of the PSX opposing China's

nomination of Richard Morin as managing director.

While the PSX is yet to formally announce Morin's

appointment as the latest MD, officials confirmed that the

board of directors has finalised it in principle, the Express

Tribune reported.

However, a couple of brokers, showing their concern over

the unofficial appointment, said the Canadian national would

unnecessarily cost more to the company the PSX as he is

being appointed at a huge salary and is also being given

special perks, including residential allowance and

international travelling expenditure.

In addition, a broker said the foreign national would not

be aware of "our national culture and particularly, the stock

market culture" and this may prove to be a hindrance in his

performance.

"The stock market mostly operates on personal rapport and

relationship and he (Morin) lacks that on both fronts," a

broker said.

A PSX official, confirming the appointment, however, said

they have not received any formal opposition from the brokers

and members have the right to have their personal opinions.

"Only the shareholders of the company (PSX) have the

right to accept and reject his appointment and approve and

disapprove of his monthly package. They may do this at the

forthcoming Annual General Meeting likely to be held at the

end of this month or at the beginning of next month," he said.

He said Morin is a professional and experienced official

who has served at Canadian stock markets and the Stock

Exchange of Mauritius. He has worked at several brokerage

houses and asset management companies.

The official added that PSX has given the right to its

Chinese shareholders to nominate candidates for the top three

positions of the market -- managing director, chief financial

officer, and chief regulator officer.

However, the full board of directors is still has the

power to finalise appointment of candidates.

"We have given them (Chinese) the right to nominate

candidates after the PSX sold its 40 per cent stake to the

Chinese consortium early this year," he said.

The official said it may take one to two weeks to make

the formal announcement of the appointment.

The new managing director's appointment is being made at

a time when the PSX's benchmark KSE-100 index is struggling to

recover from a steep correction.

Despite a slim recovery to 42,841 points till September

18, the index is still close to 23 per cent lower from its

peak of 52,876.46 on May 24.

Last year, it grew 46 per cent and emerged as Asia's

top-performing stock market and among the top five in the

world.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)