Pakistan Extends August Stock Trading Curbs Until Oct. 31
Pakistan extended trading restrictions on its stock market for the third time in a month to prevent a further slide.
``Some time is still required for the implementation of market stabilization measures,'' Adnan Afridi, managing director of the Karachi Stock Exchange told reporters today. Shaukat Tarin, the Prime Minister's finance adviser will visit the exchange on Oct. 31, after which a decision about ending curbs will be taken, he said.
The Karachi Stock Exchange's benchmark KSE 100 Index has lost more than one-third of its value this year. Board members met over the weekend to discuss extending the curb, which was scheduled to be lifted on Oct. 27. The board also discussed ways to prevent possible violence by angry investors.
The eight-week-old trading curbs have prevented stocks from falling below their Aug. 27 closing prices, shielding investors from a record sell-off. Pakistan has twice imposed trading restrictions and bailed out individual investors. Since the curbs were imposed, Pakistan's credit rating has been cut, giving it the world's second-lowest grade.
The KSE 100 Index closed unchanged at 9,182.88 on Oct. 24. The benchmark has risen or fallen less than 1 percent on each trading day in the past seven weeks.
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