KSE drops over 3pc as uncertainty returns

KARACHI (updated on: August 20, 2008, 11:16 PST): Karachi stocks market fell over 3 percent on Wednesday as investors sold blue chips like OGDC amid uncertainty whether the coalition government's parties can work together to tackle pressing economic issues.

The benchmark Karachi Stock Exchange (KSE) index fell as much as 3.5 percent in early trade. By 0530 GMT, the index had slightly pared losses and was down 2.8 percent.

Investors said they were losing hope President Pervez Musharraf's resignation on Monday would ease country's political tension because the fractious coalition government did not see eye to eye on political issues.

"Once the Musharraf (resignation) happened, everybody thought the coalition was going to work like a charm, but obviously that is not happening," said Asad Iqbal, the managing director at Ismail Iqbal Securities Ltd.

Coalition leaders met for several hours on Tuesday but got bogged down by squabbles over the restoration of the judges. Iqbal said investors were also worried the party led by former prime minister Nawaz Sharif may join the opposition. "Markets will be volatile until you know which way the political situation is going," Iqbal said.

Expectations of Musharraf's resignation will ease political turbulence pushed Pakistan shares up nearly 13 percent as of Tuesday's close, after the coalition government said on August 7 it would begin impeachment proceedings against Musharraf.

But the post-Musharraf euphoria is evaporating and investors now want the coalition government to prove its members can co-operate, and show they have the will to revive Pakistan's sickly economy. Pakistan is fighting widening trade and fiscal deficits, falling reserves depleted by high oil prices, and soaring inflation.

Blue chips led losses on Wednesday. Oil and Gas Development Co Ltd, Pakistan's biggest firm by stock market value, fell 3.2 percent. OGDC is set to announce its full-year earnings later on Wednesday.

Seven analysts forecast OGDC to post a full-year net profit of 50.1 billion rupees ($676.1 million), Reuters' estimates showed. MCB Bank, the country's largest bank by market capitalisation, fell 4 percent, and state-run Pakistan Petroleum Ltd (PPL) dropped 3.1 percent.

Copyright Reuters, 2008

KSE bubbled buoyancy bursts, as index crash by 331 points

Updated at: 1105 PST, Wednesday, August 20, 2008
KARACHI: Karachi Stock Exchange (KSE) last two days’ upbeat proved short-lived, as the KSE-100 index today within a brief one hour of trading was seen nose-dived by 331 points to 10587 points.

Market pundits told that KSE, following the suit of the general celebrations on Musharraf’s resignation by the terrorists, the media and the parties in the ruling alliance, remained euphoric for the last two days gaining over substantial 660 points, today at the very onset of trading went crashing by 331 points to peg at 10587 until the filing of this report.

Analysts said that the conglomeration of parties with diversified agenda ganged up for the ouster of Musharraf, soon seemed felling apart, which poured cold water on the high spirits of the investors, who aping the so-called intelligentsia, had gone on jolly good trading.

Source: http://thenews.jang.com.pk/updates.asp?id=52666

My father is a small time KSE trader and when the market rose on august 18th.He said that its not because of Musharraf going. Now you see the market goes down by hundreds of points.It may go down a little more or may be a lot more.The media thought that Musharraf gone was a good omen.They are clearly wrong. KSE does not like the likes of Zardari and Nawaz Sharif.

In the 90s Ishaq Darr and his companions played havoc with the KSE.

The market closed @ 9430 points. This marks the beginning of dark ages for Pakistan. The market has lost almost 1000 points in 5 business days. This really neither good for the consumer nor investor's the confidence either local or international. Today, I officially bid Pakistan adieu because, I sold my last investment for Rs. 9965 in stock market for KSAB bank. So good luck to all of you who are still in the market.

Unfortunately the market will remain very uncertain and fragile due to the political upheaval,When Musharraff was in charge the economy was much stable and healthy, but now the democratic crooks have come to power everything is going downhill and may Allah forbid Zardari becoming president he will destroy everything we have achieved.

KSE-100 index freeze at 9000 points on the card

Updated at: 1550 PST, Wednesday, August 27, 2008

KARACHI: Karachi Stock Exchange (KSE) in the persistent grip of bears saw the index nose-diving below 26 months’ lows, while the KSE members in panic held an emergency meeting at 3.00 P.M., when several proposals including capping the KSE-100 index at 9,000 were mulled over, but in the absence of arriving at a consensus with the Securities and Exchange Commission (SECP), none of the proposals could be finalized.

KSE continues witnessing one of the worst slumps, eroding almost 45 percent in its 100 index during the last four months. The financial market appears worst hit by the ongoing political tussles between two major parties once in alliance and now flexing muscles against each other.

Earlier KSE-100 index was seen at this low on June 14, 2006. On the other hand, KSE senior members told Geo News that the members of KSE Board in the wake of the crash in the market Tuesday tried contacting Federal Finance Minister, Naveed Qamar, but despite best efforts couldn’t get him. Stockbrokers blamed the government for not making any sincere efforts for salvaging the sinking market. They said that the Support Fund set up for this purpose has thus far made purchases of only Rs4 billions, while it was issued a grant of Rs20 billion.

KSE sinks below 9,000 marks

Updated at: 1240 PST, Wednesday, August 27, 2008

KARACHI: Karachi Stock Exchange (KSE) witnessing one of the worst crises in its history further crashed by 430 points, breaching even the psychological barriers of 9,000 marks, while the rulers locking horns wasting all their energy in letting down each other and the cautious authorities reluctant to take any initiative for if not salvaging the sinking KSE, at least keep it afloat.

The Benchmark KSE-100 index dipped by 430 points stood at 8999 points until the filing of this report.

It may be recalled that the analysts have attributed this worsening situation in KSE to intensifying political instability, countrywide worst load shedding and the lackadaisical attitudes of the local and foreign investors, who kept waiting on the sidelines and refrained from taking any new position.


Link

from 15000 to 9000

good way too good
pakistani people deserve this after electing DEMOLITIONCRAZY people

Are they still blaming everything on musharraf? or maybe he is sitting in his house and doing something against the government and its resulting in a bad performance of stock market.


SPEEDY
enjoy

The market is being corrected to it's true value. The stupid Generals shouldn't have manipulated and bloated the KSE in the first place. All of these American puppet Generals should be hanged for treason against Pakistan for personal gains and to justify their genocidal military rule. I haven't heard of any Generals losing any of their expensive golf course, tennis courts and huge pony farms for their little daughters in the recent slump in the Pakistan economy!! !

the market is reflecing the absent economic policies of this govt.

WHAT A LAME EXCUSE ....



all i read is bullshit ....

Let me know when you have Facts, Figures and Data to back your remarkably retarded comments based on blind hate rather than common sense to say the absolute least.





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btw, bloated lasts 1 Quarter, may be 2 ... may be 3 ...

But not 4 * 9 = 36 Quarters.

Than again asking an illiterate 12 year to understand such basic things is far too much.

Read Business Recorder, it might help you realize the facts.

oooooooo bhenssssssssssssss! good one Insty

The market is being corrected to it's true value

I agree with you .. correction in Stock market, S&P, Moody's rating etc .. were all inflated by the "stupid" General ! No wait .. it is not the General which is stupid .. but the international financial market which are stupid & listening to the smart General !

Heck what .. even Pakistani Forex reserves are in for correction .. All the above figures & negative ratings of S&P / MOddy' will be corrected & get restored to the rate which we had in 1998 ! I agree with you fully Ishaq Dar Sahab !

Why do you freeze the figures .. because you are not sure of the free fall ! This is the very good way by the present govt. to hide their incompitence .. it's just like the NS Freeze of our FDI's ! .. The international investors will just run away from this .. but for local reputation .. at least our democratic leaders will not loose their face !!!!

http://www.dawn.com/2008/08/28/top9.htm

Putting floor under the fall
By Dilawar Hussain

KARACHI, Aug 27: The Karachi Stock Exchange put a floor under individual stock prices prevailing at the close of the market on Wednesday, freezing the index at the 9,000-level it stood at close on Wednesday.

The mechanism was believed to have been put in place after a nod from the apex regulator — Securities and Exchange Commission of Pakistan.

“The proposal simply means that stock prices will not be able to slip below the price prevailing at the close on Aug 27,” KSE managing director Adnan Afridi told Dawn.

He said the price of a stock, say at Rs50 on Wednesday, could be bought at higher price (within the normal circuit-breaker limits i.e. a maximum rise of five per cent) say at Rs52 on Thursday, but not below Rs50. The next day, the scrip could rise further or shed the earlier gain of Rs2, with the floor remaining at Rs50 every day.

He said that the new mechanism would be effective from Thursday and might remain in place until “normal market forces start to operate”.

Mr Afridi said that the step had been taken not just to stabilise the stock market, but also to prevent the financial system from collapse as a result of a domino impact.

The decision to freeze the stock prices came after 121 of the 123 members present at an emergent general body meeting of KSE stock brokers voted in favour and the board of directors endorsed the proposal.

“The board took all participants, including financial institutions, mutual funds and foreign funds, into confidence before forwarding the proposal to the SECP,” Mr Afridi said.

Earlier during the day at around noon, all voices drowned amid shrieks and screams of brokers and traders as the KSE-100 index breached the 9,000 level for a short time to touch 8,999 points. The index clawed back to close at 9,144 points.

But panic was thick in the air. In order to preclude recurrence of a recent violent investors’ protest, the KSE management called in the police, which kept their distance.

The KSE has been in turmoil for the last four months, witnessing a collapse of almost 55 per cent in stock values as index has dipped by a staggering 5,600 points from its high of 15,760 points on April 20. The stocks are down 33 per cent since the start of the year.

“The market is starved of liquidity,” said Aqeel Karim Dhedhi, a leading stock broker. He blamed monetary policy, erosion in the rupee value and lack of investors’ confidence for the crisis.

Analysts said the KSE’s step would provide the market a ‘breathing space’, which, they thought, was required to calm investors’ fears.

Total rubbish. Like I said bfore, the market is being corrected to it's true value. All the foreign 'investment' as you lads love to call it, was nothing more than temporary bribes that the internatonal pimps put in place to appease the pro-American prostitutes. Now that these pimps have used and abused Pakistan well via the Munafiq Generals for good eight-years and have turned the nation into an international toilet, they're taking all their 'investments' back.

p.s. America says thanks to all the regular pro-American Jackasses. Now, if some are struggling to live without America's dirty money for the last six-months, I suggest they bray as loud as they can, maybe the Americans will drop a crate full of carrots on General Headquaters.

Total rubbish. Like I said bfore, the market is being corrected to it's true value. All the foreign 'investment' as you lads love to call it, was nothing more than temporary bribes that the internatonal pimps put in place to appease the pro-American prostitutes.

Beta .. look at the internal affairs of the country & the future promise & than think why the investors have fled, before using such words for any person who has rightly removed his investments from Pakistan.