2008 Karachi Stock Exchange Crisis
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.