 |
| |
WEEKLY
SECTIONS |
 |
| |
|
 |
SECP takes measures to support stocks |
| |
Updated at:
2210
PST, Monday, June 23, 2008 |
| |
ISLAMABAD: The Securities and Exchange Commission Pakistan has taken a series of rescue measures aimed to pull the stock market from its recent and persistent downward spiral.
The regulator has decided to impose a ban on the short selling of July Future contracts --- while a Market Stability Fund to the tune of 30 billion rupees is also being set up to pump fresh liquidity .
In another move, lower circuit limits applied to check price volatility has been reduced to 1 percent of the stock’s opening value – whereas upper cap has been extended to 10 percent.
The regulator has also allowed bank guarantees to be used as a support for leverage positions, in addition to the existing requirement of cash margins.
These decisions were taken at a meeting between the regulator, and KSE officials at SECP’s office in Karachi.
Now these measures come after the stock market's recent fallout, where the KSE’s benchmark index shed over 13.5 percent just last week.
The index is currently down a whooping 28 percent from its record ever of 15,676 points it set on April 18, 2008. |
| |
|
|
|
|
ISSN 1563-9479 
