Market remains calm as investors await the flooring removal (24102008)

LEADER REPORT
KARACHI: The bourses remained calm with virtually no activity witnessed at the market on Thursday. Investors continued their uninterested approach to stay away from the bourses. The benchmark index KSE-100 closed at 9,182.88 points registering a decline by only 0.86 points depicting flat performance of the index reflected by shanty volumes as only 120k shares being traded at the bourses with only 8 gainers versus 5 losers.
Market stabilisation measures by SECP
In a meeting held between SECP officials and BoD of all three bourses, the SECP Chairman formally approved the establishment of the fund. SECP has chalked out a Rs50bn package to bailout the ailing equity market. This package encapsulates a Rs20bn NIT managed fund that will cater investments in state-owned entities that include OGDC, PSO, NBP, PPL, SSGC, SNGP and KAPCO. In addition, a Rs30bn guarantee has also been extended by GoP to the foreign investors in the form of put options.
IMF says Pakistan approached it for assistance
IMF spokesperson have hinted that the country, in need of immediate finance, has approached the IMF for financial support upto about USD15bn over the period of three years, part of which could be arranged for on immediate basis, which could be delivered within 10 days of the formal request.
Pak rupee remained flat
Total reserves, including those held by commercial banks, have fallen sharply from highs of USD16.5bn last October now stands at USD7.75bn on Oct. 11, 2008 which has put tremendous pressure on the value of rupee making it dip at increasingly low levels, however, the news of IMF support has minorly eased off that persistent strain on our currency.
Global market tumble further down
Stocks all across Asia and Europe trade down for a third consecutive session in anticipation of recessionary risks of world economies. Despite huge injections by Governments in US, UK, Switzerland and France and their respective banks, it is feared that the crisis is far from over and therefore may result in global depression.
Government steps anticipated to hold market back!
The measures taken by the SECP by approval of NIT fund and the SBP measures for allowing any property as collateral in addition to shares with the outstanding dues to banks as one year Term Finance Facility is expected to provide "soft landing" for the bourses when they resume their normal trading from the 27th. Another positivity was the guarantee provided by the Government to foreign investors by exercising put options, seems to be an added help to the ailing market.