10,212 - end of the current carnage ?
July 17, 2008The KSE-100 index has been bludgeoned by relentless selling this week and closed down at 10.212, the lowest close since Jan. 8th 2007. The market has lost 965 points in the last 4 trading sessions, about 9% . Finally there were several people rioting at the bourses breaking windows in protest of there being no support to the slide. The SECP has finally woken up and announced some support measures where by some funds are being collected to stem the falling tide and support the mkt (full details will be known later today). The SECP should have had the EMOF fund in place for when it announced the opening of 5% lower limits on Monday. The resulting carnage that took place without any support has fucked the market out of shape, with irrepareable damage for a lot of investors who have had the shit squeezed out of them, being unable to sell at even today’s absurdly low prices. Whether this will be a temporary band-aid till the panic starts about the expected interest rate hike on the 29th, remains to be seen. Hopefully the result season won’t be marred by current issues and the market could settle down soon after the rate hike has been absorbed.
While the economy of the country is in dire straits, the government is still harping on about their differences in resolving the judiciary problem. Is this current slide, the reflection of our Govt. being seen as a totally inadequate, fucking joke ?
Dividends : FFBL : 6% Cash : EPS : 0.77
Market Low : 10,045.43 High : 10,491.88
Market Close : 10,212.92 — 278.96 points down
