RPT-Pakistan's SECP approves futures trading in 18 stocks

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KARACHI, July 23 (Reuters) - The Securities and Exchange Commission of Pakistan (SECP) has approved 18 stocks for trading in the deliverable futures contract market (DFCM), in a move that is expected to boost trading volume.

The contracts, which were discontinued in May amid a liquidity crunch, will be relaunched from August, the SECP said in a statement.

Dealers said the reintroduction of futures contracts would spur more intra-day trading, which would improve sentiment as well as volume.

The Karachi Stock Exchange's (KSE) benchmark 100-share index .KSE was up 1.3 percent in early trade on Thursday following the announcement.

The board of the Karachi Stock Exchange recommended last week the resumption of deliverable futures in 10 stocks.

"However, in order to enhance transparency and avoid chances of manipulation in few particular securities the SECP has approved more exhaustive eligibility criteria as a result of which securities qualify for trading in DFCM," the SECP said.

The stocks approved include blue chips like Oil and Gas Development Co Ltd (OGDC.KA), MCB Bank Ltd (MCB.KA), Pakistan Petroleum Ltd (PPL.KA), Pakistan State Oil (PSO.KA) and Pakistan Telecommunication Co Ltd (PTCA.KA). (Reporting by Faisal Aziz; Editing by Jason Subler)