429 points more - upside continues
June 16, 2006
There are now investigations into whether the Karachi Stock Market crashed due to excessive shorting . It seems obvious that it did and it snowballed into an unexpected panic towards the end leading to a historic fall of 545 points down in a day. It could well have gone down further to 8000 had some temporary measures not been placed to stem the fall. Some argue that the intervention should not have occured as its a free market and that it would have found its own bottom eventually. Probably when all the Vaseline supplies were exhausted !
After all, if the market’s own exit mechanism dictated that someone going short could have made 20% on Thursday 15th (had the rules not changed) , why the fuck would anyone bother going long for 5% upside in a day ??
The market opened with a gap especially in OGDC and POL .Another day of continued upside as people grab shares at attractive prices with some assurance that there will be no short trades allowed till the end of June.The day was relatively dull with everything on my screen capped (the list is too long to mention ). While I feel that there is enough juice to hit 10k next week, there might be some correction prior to that.
Speaking of bottom earlier, here is some virtual arsewipe; The Daily Times carries a ridiculous story about the opposition accusing the Prime Minister of KSE manipulation and allowing "dirty gambling " !!
Market close : 9,607.11 / 429.65 points up.
