Pakistan to remove its market floor: Financial Times

By Farhan Bokhari in Islamabad

Pakistan’s stock market regulator on Thursday night ordered the managements of the country’s three stock exchanges to remove an artificial floor introduced in August this year to prevent share prices from tumbling further after many months of declines.

However, the floor became controversial amid charges from angry investors who argued this artificial mechanism effectively brought activity to a virtual halt as daily volumes of shares traded fell to an all-time low.

The order requires the Karachi, Lahore and Islamabad stock markets to end the limit from Monday, in spite of many brokers and investors opposing such a move on the grounds it would see a flight of capital.

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