A summary of the miserable year at Karachi Observer:
To run away from massive level default and bankruptcy of brokers, the Securities and Exchange Commission of Pakistan and authorities at local bourses made many regulatory changes. The last change was the introduction of floor-price mechanism in August that prevented incurring losses for about three and half months, but lifting of floor on Dec 15 resulted in fresh 36 per cent decline in market.
“Imposition of price floor by the regulators was the confidence killer for the market as it created one of the worst crisis in local markets. Karachi bourse that fell by 35 per cent before the imposition of floor, crashed by 36 per cent in 12 trading sessions after the lifting of floor rule,” reported JS Global.