The Karachi 100 index fell for its 15th successive day on Thursday – the longest losing streak in eighteen years.
All the more galling perhaps, since the KSE 100 was, three months ago, at its all time high. Something, anyway, has caught a nerve. Bloomberg:
Pakistan stock investors threw stones and smashed windows at Karachi’s stock exchange to protest the worst losing streak in at least 18 years, prompting intervention by the police and paramilitary officers.
Hundreds of investors walked out of the trading hall after the benchmark Karachi Stock Exchange 100 Index fell for a 15th day, extending a slump that has wiped out $30 billion of market value in three months.
The KSE100 is down 14 per cent since Monday. The ostensible reason is that the Pakistani government had imposed strict curbs on daily price movements in June. The aim then being to stave off a precipitate fall in values. Until this week, circuit breakers had imposed limits of 1 per cent down, 10 per cent up. They’re now at “normal” levels of 5 per cent either way.
In other words, were there no restrictions at all, things would be a lot worse than 14 per cent.
Thank God short-selling isn’t on the news agenda in Karachi – things could be a lot uglier than filling out a TR-3.
Pictures – as, when or if the FT newsroom gets some – to follow.
Update (as promised)
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