Business | Markets
Karachi stocks recover mildly after floor set
Pakistan's main share index ended slightly higher yesterday after exchange and government authorities set a floor for the index following heavy losses in recent days.
- Reuters
- Published: 23:44 August 28, 2008
Karachi: Pakistan's main share index ended slightly higher yesterday after exchange and government authorities set a floor for the index following heavy losses in recent days.
The Karachi Stock Exchange index opened more than one per cent up but later slipped back to end 0.64 per cent, or 58.85 points, higher at 9,203.78.
Some dealers saw the floor-freezing move as bolstering confidence, at least in the short-term. "Until this is lifted, I think the government should look around for other options to boost confidence," said Shuja Rizvi, director at Capital One Equities.
"Perhaps after the presidential election, at least political uncertainty may not be an excuse for the weak sentiment," he said, referring to a September 6 election by legislators for a replacement for Pervez Musharraf.
Dealers said trade volume was low at about 34 million shares.
Uncertainty about the prospects for a civilian coalition government, militant violence and economic woes have all undermined investor confidence.
Struggling to halt a slide in share prices, authorities yesterday set a floor for the index at the Wednesday closing of 9,144.93 points after the market had fallen for six consecutive sessions since August 20.
The measure would remain in place until further notice, they said.
The index has lost 43 per cent since hitting a record high of 15,739.28 on April 21.
Pakistan's stock market rose for six consecutive years from 2002, and was one of the top performers in Asia during that period.
But it has skidded 36 per cent this year on political tension and a shaky economy and is now the third worst-performing in Asia after China and Vietnam.
Among the most active companies, NIB Bank rose 0.83 per cent to Rs8.52, Zeal Pak was up 7.76 per cent to Rs1.25, while Nishat Mills rose 0.13 per cent to Rs46.77.
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