Reversal Of Stock Market Restrictions To Hasten Equity Declines

July 2008 | Market Strategy

Foreign selling led Pakistan's benchmark Karachi-100 index 4.43% lower on July 14 after authorities reversed their recent decision to limit equity market downside to just 1% per day, underscoring our view that Pakistani equities are set for further downside over the coming months. The Karachi Stock Exchange (KSE) board and the Securities and Exchange Commission of Pakistan (SECP) decided on June 23 to alter the daily limit that share prices can move from 5% either way to 10% on the upside and just 1% on the downside, but these alterations have now been scrapped and the original limitations restored, setting up yet further losses for the beleaguered Karachi-100.

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.