2008 Karachi Stock Ex­change Cri­sis

Enterprise - - SPECIAL FEATURE -

Karachi Stock Ex­change achieved a ma­jor mile­stone when KSE-100 In­dex crossed the psy­cho­log­i­cal level of 15,000 for the first time in its his­tory and peaked 15,737.32 on 20 April, 2008. More­over, the in­crease of 7.4 per cent in 2008 made it the best per­former among ma­jor emerg­ing mar­kets. May 23: Record high in­fla­tion in the month of May, 2008 re­sulted in an un­ex­pected in­crease in the in­ter­est rates by State Bank of Pak­istan which even­tu­ally re­sulted in sharp fall in Karachi Stock Ex­change. July 17: An­gry in­vestors at­tacked the Karachi Stock Ex­change in protest at plung­ing Pak­istani share prices. July 16: KSE- 100 In­dex dropped one- third from an all- time high hit in April, 2008 as ris­ing pres­sure on shaky Pak­istan’s coali­tion govern­ment to tackle Tal­iban mil­i­tants ex­ac­er­bated con­cern about the coun­try’s eco­nomic woes. Au­gust 18: KSE 100 In­dex rose more than 4% af­ter the an­nounce­ment of the res­ig­na­tion of Pres­i­dent Pervez Mushar­raf but Credit Suisse Group said that Pak­istan’s Post- Mushar­raf rally in Stock Ex­change will be short- lived be­cause of a ris­ing fis­cal deficit and run­away in­fla­tion. Au­gust 28: Karachi Stock Ex­change set a floor for stock prices to halt a plunge that had wiped out $ 36.9 bil­lion of mar­ket value since April. De­cem­ber 15: Trad­ing re­sumed af­ter the re­moval of floor on stock prices that was set on Au­gust 28 to halt sharp falls.

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