Wikinvest Wire

Pakistanis should ban short selling

Thursday, July 17, 2008

The Pakistani government should take a cue from the U.S. and ban short-selling on things they don't to go down and limit long positions on things they don't want to go up. It seems to be working wonders here in the U.S. for financials and oil - they could have avoided this:
This report from the BBC has all the details:

Hundreds of angry investors, upset by plunging Pakistani share prices, smashed windows of Karachi Stock Exchange and scuffles broke out during a protest to demand a temporary closure of the market.
...
The KSE-index is down 14% since Monday after the relaxation of curbs on daily movements that had been tightened in late June to halt a precipitate fall in values.

From Monday, daily circuit breakers reverted to 5% up or down, having been amended to 1% down or 10% up in late June, a move that stifled trading volume.
Apparently the curbs intended to "guide" the market higher didn't work as intended.

This may have been a joke (it's not easy to get information on the Karachi stock market), but, according to this item at the Deal Journal WSJ blog, Pakistan had the best stock market performance as of April 1st.

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3 comments:

Anonymous said...

Gotta love the Pakistanis. There is no problem a little violence can't solve. How do you take country like this seriously???

Anonymous said...

My Bloomberg right now shows three indicies for the Pakistani market - down 26.30%, 30.85%, and 24.66% this year respectively (in local currency terms). Take another ten percent off for currency changes (the Pakastani Rupee has fallen from about 62 per dollar to 70 per dollar this year).

Bloomberg ranks the main Pakastani index as the ninth worst performing in the world (in dollar terms) so far this year (-36.03%).

The Ghana and Beirut stock exchange indicies top the list with gains of 37.81 and 36.09 percent respectively this year.

Hank paulson sucks said...

I heard you get your head chopped off if you short... A little more aggressive then the SEC commissioner huh? lol Short the stupid Financials in the States.

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