Stock market reacts positively to KSE board moves

KARACHI - The crisis-ridden Karachi Stock Market on Thursday showed a slight improvement and the KSE-100 index saw a gain of 59 points in response to the emergency measures taken by the KSE board to avert further downslide of the stocks prices.

The KSE-100 index on the back of rescue measures made a high of 9,246 then dipped down to 9,144 and closed up at 9,203 points on Thursday.

The free float KSE-30 gained 37 points and wrapped up at 10,182 points.

However, the trade activity remained weak as total volume stood at 56 million shares, reflecting a decline of 38 million shares against the shares recorded a day earlier.

The Board of Directors of the KSE has implemented a floor on the KSE-100 index at the level of 9,144, effective from Thursday. This change has been implemented following the persistent decline in stock prices following a period of severe political upheaval combined with economic issues that has not only crushed the confidence of investors but also eroded 42 per cent of market capatalisation during the last four months.