IS KSE BACK ON TRACK?

Sep 05 - Sep 11, 2005 
ISSUE # 36 

After deliberations between all the stakeholders, Securities Exchange Commission of Pakistan, (SECP), the stock market regulator; Karachi Stock Exchange (KSE), front liner regulator; and intervention by Prime Minister Shaukat Aziz, a bailout package was designed and instead of badla, which appeared to be a crude jargon for the market participants a new system- Continuous Funding System (CFS) - has been introduced, which is a refined form of liquidity injection plan.

OIL PRICES
Much feared oil price hike took over the consumer on September 1 as Oil Companies Advisory Committee, whose main constituents are oil-marketing companies, deemed it fit to raise domestic prices up by seven to nine percent.
The rise came in with the exorbitant increase in international oil prices. World oil prices dipped September 2 but remained in reach of 70 dollars amid supply concerns fuelled by a shortage of refinery capacity in the wake of Hurricane Katrina.
While untamed prices at international markets give a good pretext to the policy maker to adjust home price in conformity with them, they also allows manipulators to make hay of the ongoing trend. Heedless woes of common, commercial and industrial consumers are continual and people have been falling prey to oil price bungling since late 1999.