Don't laugh but it sure looks like signs of panic by the capital market regulators are appearing. I wonder what we can expect to be put into effect this weekend before markets open on Monday morning.
Looks like Pakistan have full fledged panic. New rules limit down days for each listing to 1%, no short selling, $702m buying fund to support market.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aDYwCNHYC214&refer=home
Pakistan Stock Trading Falls to 10-Year Low After Support Plan
By Pooja Thakur and Farhan Sharif
July 11 (Bloomberg) -- Pakistan stock trading fell to the lowest level in a decade after regulators introduced measures to halt a two month slump that caused the benchmark Karachi Stock Exchange 100 Index to fall 29 percent.
Trading slowed 92 percent since the Securities and Exchange Commission of Pakistan limited daily share declines to 1 percent a day on June 24. Fewer than 5.35 million shares changed hands on the Karachi Stock Exchange July 4, the lowest since May 26, 1998, according to data compiled by Bloomberg.
Regulators will review today whether the curbs are needed after the exchange announced a 50 billion rupee ($702 million) fund to buy stocks after the close of trading yesterday. While the limits stopped Pakistan stocks from tumbling, they also drove away fund managers concerned about an exchange where rules change overnight.
``If investors realize that there will be regulatory interventions in the normal functioning of the market, they will always be reluctant,'' said Najam Ali, who manages the equivalent of $547 million in Pakistani stocks and bonds as chief executive officer of JS Investments Ltd. in Karachi.
Regulators banned short-selling, narrowed the limit on declines from 5 percent and doubled the cap on gains to 10 percent, in measures announced late June 23. Short sellers borrow shares and sell them, hoping to replace the stock at a lower price and pocket the difference.
The curbs were introduced after the Karachi Index fell to a 15-month low on concern that the ruling government coalition would collapse because of disputes about judicial appointments and the fate of President Pervez Musharraf.
Zero Trading
A total of thirty-two of the 100 companies in the benchmark index had zero shares traded yesterday. Turnover in MCB Bank Ltd., Pakistan's second-biggest lender, fell as low as 14,600 on July 4, compared with the average 3.9 million a day over the past year
Looks like Pakistan have full fledged panic. New rules limit down days for each listing to 1%, no short selling, $702m buying fund to support market.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aDYwCNHYC214&refer=home
Pakistan Stock Trading Falls to 10-Year Low After Support Plan
By Pooja Thakur and Farhan Sharif
July 11 (Bloomberg) -- Pakistan stock trading fell to the lowest level in a decade after regulators introduced measures to halt a two month slump that caused the benchmark Karachi Stock Exchange 100 Index to fall 29 percent.
Trading slowed 92 percent since the Securities and Exchange Commission of Pakistan limited daily share declines to 1 percent a day on June 24. Fewer than 5.35 million shares changed hands on the Karachi Stock Exchange July 4, the lowest since May 26, 1998, according to data compiled by Bloomberg.
Regulators will review today whether the curbs are needed after the exchange announced a 50 billion rupee ($702 million) fund to buy stocks after the close of trading yesterday. While the limits stopped Pakistan stocks from tumbling, they also drove away fund managers concerned about an exchange where rules change overnight.
``If investors realize that there will be regulatory interventions in the normal functioning of the market, they will always be reluctant,'' said Najam Ali, who manages the equivalent of $547 million in Pakistani stocks and bonds as chief executive officer of JS Investments Ltd. in Karachi.
Regulators banned short-selling, narrowed the limit on declines from 5 percent and doubled the cap on gains to 10 percent, in measures announced late June 23. Short sellers borrow shares and sell them, hoping to replace the stock at a lower price and pocket the difference.
The curbs were introduced after the Karachi Index fell to a 15-month low on concern that the ruling government coalition would collapse because of disputes about judicial appointments and the fate of President Pervez Musharraf.
Zero Trading
A total of thirty-two of the 100 companies in the benchmark index had zero shares traded yesterday. Turnover in MCB Bank Ltd., Pakistan's second-biggest lender, fell as low as 14,600 on July 4, compared with the average 3.9 million a day over the past year
