SECP's broker-license regulations pull 100-index down 500 points
The market had no trigger point to ride north, and the SECP's probe against brokers intensified the drop
February 27, 2017
KARACHI: Sinking on the Security and Exchange Commission of Pakistan's (SECP) proposals pertaining to the brokers' licensing regulations, Pakistan's KSE-100 index sank 500 points on Monday.
Thin volume and caution explained the investors' sentiment at the Pakistan Stock Exchange (PSX) on Monday.
The market had no trigger point to ride north, and the SECP's probe against brokers intensified the drop.
According to market sources, the SECP has proposed amendments for brokers licensing regulations, which, if approved, will push brokers to convert their operations to private or public limited companies.
The ongoing rift between the apex regulator and brokers kept the trading volume low as only Rs.11billion worth of 250 million shares exchanged hands, market capitalisation fell by Rs.87billion to 9617. The 100-index closed in red, shedding 487 points to end the day at 48,520.
