Stock exchanges to remove floor on 15th

Stock exchanges to remove floor on 15th
The longest ever closure of the stock market in the world is finally set to open on Monday, the 15th of December 2008 after 100 days of freezing the KSE-100 index at 9,144 point level. The move came after the failure of the apex regulator to offer any sort of support fund for providing a soft landing to the market. The immediate impact of the removing of floor will be significant selling pressures in the some of the key stocks bringing significant reduction in their prices. The key concern here is however the investment of around Rs. 11 billion in the ‘badla’ system but those brokers which were vociferous campaigners for the ‘floor’ to be in place have decided to swallow the bitter pill as it has bring more damage to the market. The imposition of the floor has led to the removal of MSCI Pakistan Index from the MSCI Barra.