Floor Mechanism Likely To Be Removed On October 6

Wednesday, September 10, 2008 at 9:53 am

The floor mechanism set on share prices on August 27 closing level is most likely to be removed on October 06, 2008, sources said. The Board of Directors of the Karachi Stock Exchange held an emergent meeting here on Tuesday to review its earlier decision whereby a floor had been placed based on closing prices of securities of August 27, 2008.

The KSE board observed that some progress had been made on providing a ‘cooling period’ to market participants, facilitating buy-back of shares by listed companies, reforming of CFS Margining System and providing institutional/liquidity support like Equity Market Opportunity Fund (EMOF) and other sources to the market.

In light of the recommendations of the informal general body meeting of the members, the board decided to continue to focus on the initiatives outlined. The board also decided to review progress and announce a date for removal of ‘floor’ in its meeting to be held on Thursday, September 25, 2008. Sources said that the board would give at least a seven-day notice period for removing the floor.

Earlier, an informal general body meeting of KSE members held on Monday recommended to continue the floor mechanism for further period to avoid further losses. They also demanded for taking supportive measures before removing the floor mechanism. The KSE board of directors set the floor mechanism on the share prices level of August 27, 2008. The next board meeting to be held on September 25, in which the board will announce a date for removal of floor.

Floor Mechanism Likely To Be Removed On October 6

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