First Capital Equity likely to default

LAHORE - The First Capital Equity, a brokerage house listed with the Karachi Stock Exchange, is reportedly on the verge of default, it was learnt on Tuesday.
Details revealed that the management of the KSE has issued a notification to the FCE, the public limited company, to clear its dues, which is around Rs 280 million, to the national clearing company with in 48 hours otherwise its assets will be sold and would be declared as the defaulter.
It is to be noted that the First Capital Equity is owned by the sitting Punjab Governor Salman Taseer with its paid up capital of Rs 1 billion.
Experts said that the company is now in the control of the KSE through a CAT system.
They said that CAT is a system under which the computerised system of the company will now be in control of the KSE management and the buying and selling of the shares through this company will be denied until the brokerage house clear its dues.
Experts said that the outgoing year would be the worst year for the local stock markets. With only 5 trading sessions remaining, the benchmark KSE 100 Index is down 51 per cent, its worst performance since the introduction of this index way back in 1991 when Pakistan market was opened for foreigners as part of financial sector liberalization.
They observed that due to record fall in equity values and slowdown in overall economy along with the imposition of price floor several companies were on the verge of default.