A crucial meeting between Securities and Exchange Commission of Pakistan (SECP) and Karachi Stock Exchange (KSE) will be held on Saturday (today) to decide whether the stock market is kept closed for a few days or to take any other step to save the investors from further losses.
The meeting will discuss the proposals of KSE members to cap the CFS rates at 24 percent and to extend the CFS settlement period from 21 days to 25 days. The members proposed to keep close the stock exchange closed for few days if their said proposals are not accepted.
The meeting is being held at the time when many KSE members are in critical condition due to continuous decline in the share prices and lack of liquidity while some of them are nearing a default position.
Sources said that an informal meeting of the KSE members was held here on Friday to discuss the prevailing situation of the stock market. The members discussed various proposals. The lack of liquidity was the main concern for them and they discussed various proposals as to how the situation could be eased.
Later these proposals were also discussed in a meeting between KSE Managing Director Adnan Afridi and National Clearing Company of Pakistan Limited (NCCPL) Chairman Ali Ansari. The Chairman KSE Kamran Mirza also joined the meeting later. According to some sources the CFS was rolled over for one day as borrowers failed to get funds from CFS market on Friday. All the Friday's trading will be merged into the Monday's trading and the settlement will be held on Tuesday.
Prevailing uncertainty and rising lending rates forced the investors to stay on the fences on Friday and the benchmark KSE-100 index remained unchanged at 9,181.35 points level. The prevailing economic conditions coupled with increased CFS rates did not allow the market participants to take fresh positions, analysts said, adding that lack of liquidity remained the main reason behind the dull activity at the share market.
The ready market volumes slightly increased to 1.833 million shares as compared to 1.792 million shares traded a day earlier. The overall market capitalisation declined by Rs 4 billion to Rs 2.841 trillion. Out of the total 70 scrips traded on Friday, 12 closed in positive territory, 10 in negative while 48 remained unchanged.
Nimir Resins was the overall volume leader with 0.618 million shares however it closed at Rs 5.30 without any change. NIB Bank also remained unchanged at Rs 8.45 with 0.268 million shares. Southern Electric gained Re. 0.02 to close at Rs 3.92 with 0.2 million shares. Sitara Energy increased by Re. 0.25 to close at Rs 22.30 with 0.139 million shares. UDL Mod closed at Rs 4.33, up by Re. 0.13 with 0.102 million shares. KESC closed at Rs 3.80 without any change with 77,000 shares.
Gharibwal Cement gained Re. 0.49 to close at Rs 17.99 with 65,000 shares. Pak Elektron increased by Re. 0.45 to close at Rs 37.50 with 56,700 shares. UTP-Large Cap. lost Re. 0.09 to close at Rs 5.50 with 52,000 shares. D.S. Ind Ltd closed at Rs 14.85 without any change with 49,500 shares. National Foods and Shakarganj Mills were top gainers with Rs 3.82 and Re. 0.66 to close at Rs 80.35 and Rs 12.50 respectively while Pak Datacom and Stand Chart Mod were the worst losers with Re. 0.85 and Re. 0.68 to close at Rs 48.25 and Rs 10.50, respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that investors remained concerned over prevailing capital market crises mainly due to liquidity issues. Falling equity values in the international capital markets, economic crisis, declining rupee value, foreign selling, broker defaults and high lending rates remained chief concerns for the market participants, who opted to remain on sidelines.
The meeting will discuss the proposals of KSE members to cap the CFS rates at 24 percent and to extend the CFS settlement period from 21 days to 25 days. The members proposed to keep close the stock exchange closed for few days if their said proposals are not accepted.
The meeting is being held at the time when many KSE members are in critical condition due to continuous decline in the share prices and lack of liquidity while some of them are nearing a default position.
Sources said that an informal meeting of the KSE members was held here on Friday to discuss the prevailing situation of the stock market. The members discussed various proposals. The lack of liquidity was the main concern for them and they discussed various proposals as to how the situation could be eased.
Later these proposals were also discussed in a meeting between KSE Managing Director Adnan Afridi and National Clearing Company of Pakistan Limited (NCCPL) Chairman Ali Ansari. The Chairman KSE Kamran Mirza also joined the meeting later. According to some sources the CFS was rolled over for one day as borrowers failed to get funds from CFS market on Friday. All the Friday's trading will be merged into the Monday's trading and the settlement will be held on Tuesday.
Prevailing uncertainty and rising lending rates forced the investors to stay on the fences on Friday and the benchmark KSE-100 index remained unchanged at 9,181.35 points level. The prevailing economic conditions coupled with increased CFS rates did not allow the market participants to take fresh positions, analysts said, adding that lack of liquidity remained the main reason behind the dull activity at the share market.
The ready market volumes slightly increased to 1.833 million shares as compared to 1.792 million shares traded a day earlier. The overall market capitalisation declined by Rs 4 billion to Rs 2.841 trillion. Out of the total 70 scrips traded on Friday, 12 closed in positive territory, 10 in negative while 48 remained unchanged.
Nimir Resins was the overall volume leader with 0.618 million shares however it closed at Rs 5.30 without any change. NIB Bank also remained unchanged at Rs 8.45 with 0.268 million shares. Southern Electric gained Re. 0.02 to close at Rs 3.92 with 0.2 million shares. Sitara Energy increased by Re. 0.25 to close at Rs 22.30 with 0.139 million shares. UDL Mod closed at Rs 4.33, up by Re. 0.13 with 0.102 million shares. KESC closed at Rs 3.80 without any change with 77,000 shares.
Gharibwal Cement gained Re. 0.49 to close at Rs 17.99 with 65,000 shares. Pak Elektron increased by Re. 0.45 to close at Rs 37.50 with 56,700 shares. UTP-Large Cap. lost Re. 0.09 to close at Rs 5.50 with 52,000 shares. D.S. Ind Ltd closed at Rs 14.85 without any change with 49,500 shares. National Foods and Shakarganj Mills were top gainers with Rs 3.82 and Re. 0.66 to close at Rs 80.35 and Rs 12.50 respectively while Pak Datacom and Stand Chart Mod were the worst losers with Re. 0.85 and Re. 0.68 to close at Rs 48.25 and Rs 10.50, respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that investors remained concerned over prevailing capital market crises mainly due to liquidity issues. Falling equity values in the international capital markets, economic crisis, declining rupee value, foreign selling, broker defaults and high lending rates remained chief concerns for the market participants, who opted to remain on sidelines.
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