Wall Street stocks pull out of plunge, stand flat

Updated at: 2338 PST, Thursday, October 16, 2008
NEW YORK: US stocks rebounded from a deep plunge Thursday, passing into positive territory as nervous investors digested more bleak economic news, a day after the worst session in over 20 years for Wall Street.

The Dow Jones Industrial Average was up 16.73 points (0.20 percent) at 8,594.64 around 1635 GMT and the tech-heavy Nasdaq gained 18.07 points (1.11 percent) at 1,646.40.

The broad Standard & Poor's 500 slipped 2.67 points (0.29 percent) to 905.17 points.

The volatile market action came after Wednesday's panic selloff and further declines in world markets including an 11.4 percent drop in Tokyo.

John Wilson, equity strategist at Morgan Keegan, said the downward momentum is being reinforced by big portfolio managers forced to sell as clients pull out funds.

"Margin calls and mutual fund redemptions along with hedge fund redemptions and deleveraging means there is forced selling going on to accompany the selling that is simply a result of fear and capitulation," he said.

"At the same time, there is the uncertainty of how deep the recession could be. It's tough to discount the future when you just don't know exactly how the current situation will unfold."

Dollar selling at Rs85 in open market

Updated at: 1329 PST, Friday, October 17, 2008
KARACHI: The national currency remains under pressure in interbank market, as the dollar is being traded at a new high of Rs83.60 here on Friday.

According to dealers, the US dollar is seen trading at Rs83.60 with the increase of Rs1.60 paisas in the interbank. The greenback closed at Rs81.80 in interbank on Thursday.

In the interbank market today, the rupee commenced the last day of business week on a negative note as it extended its weakness versus American currency. The rupee witnessed sharp decline by Rs2 even before the start of trading in interbank. On the other hand, dollar was seen trading at Rs85.50 in the open market.

According to some reports reaching here, dollar is being sold at Rs87 in some money exchangers also. Forex market dealers told Geo News that everybody was looking for dollar and that is why greenback was gaining value over frequent demand.

Experts warned that people doing short-term investment in dollar might face hug losses as world financial institutions and China could provide US$6 billions to Pakistan. AKD analyst Asad Farid urged on the government to undertake long-term planning for improvement in exports to strengthen the falling economy.

KSE trade volume hits record low

Updated at: 1719 PST, Friday, October 17, 2008
KARACHI: Trade activity at Karachi Stock Exchange further squeezed on Friday as the benchmark KSE-100 Index ended unchanged at 9,184 for the fourth consecutive day.

Investors interest evaporated from the market after the protective floor was put in place at 9,144 points.

Trade volume was shrank to only 193,000 shares – lowest in the history of KSE.

Shares of only 36 companies exchanged hands, out of which 8 rose in value, 2 declined, while 26 remained unchanged.

Market analysts expect market activity to remain dismal until the floor is removed on the October 27.

A Pakistan Strategic Enterprise Fund with an approximate value of Rs20 billion is being finalized and expected to pour in some support to the market.

However, dealers expect the fund to make an entry at 15 percent below current price levels.

Forex reserves slump to $7.74bn

Updated at: 1756 PST, Friday, October 17, 2008
KARACHI: Pakistan’s foreign exchange reserves squeezed to 7.74 billion dollars after declining further by 580 million, the State Bank of Pakistan said.

According to figures released by SBP, the foreign exchange reserves with SBP stand at 4.33 billion dollars, showing a decrease of 560 million while those held by commercial banks depleted by 50 million dollars to 3.41 billion

Ban on short selling at KSE to stay

Ban on short selling at KSE to stay Updated at: 1850 PST, Friday, October 17, 2008
KARACHI: A decision has been made to extend up to next month the existing ban on short selling at Karachi Stock Exchange. A formal announcement to this effect is expected next week.

A KSE director told Geo News on Friday that the above decision was made in view of the prevailing crisis at the local bourse. The KSE will make formal announcement in this regard before the commencement of the November’s futures cont

SBP measures: Dollar down against Rupee

Updated at: 1348 PST, Saturday, October 18, 2008
KARACHI: After the measures taken by the State Bank of Pakistan and the news of investigation against speculation in money market, a recovery in the rupee value against dollar is being witnessed today.

According to FOREX market dealers, a recovery in the value of rupee is being seen today after the continuous downward value of the currency for the last two days and dollar after a decline of Re 1.40 is now being traded at Rs82.50.

Dealers said that any possibility of the central bank’s intervention in market cannot be ignored.

As per dealers, a decline in demand of dollar is being witnessed today also due to an announcement again by the central bank not to freeze foreign currency accounts and the news that investigation is being carried out against speculators in money market.

Moreover, the expectations of new investment from China following President Zardari’s visit to China may also be the cause of recovery in the value of rupee.