KSE cuts lower lock limit, raises upper lock limit

Brokers said that KSE has done it best by reducing the lower circuit and increasing upper circuit, while market stabilization fund will restore the confidence of the investors. Such move of KSE will give space to the brokers to manage and coordinated their problems in terms of margin calls and other issues.

"The major problem of the stock market is liquidity and political instability," brokers said.

The prevailing uncertain environment has taken its toll on almost all sectors as the market plunged by 25% in the last 2 months.

 However amongst major sectors, the banking sector has been most affected as weaker economic environment, coupled with monetary tightening have aroused negative sentiments among investors.  While the direction of the share price movement is not unusual as banks have high correlation with economic cycle, it is the magnitude of the decline which has surprised most observers.