This is not Entirely Govt. involve its all about Market Dynamics that got disturbed by Short Selling time to time. The Prices of Stock goes so high due to Satas and Badlas(Business Slangs used in KSE) people started Selling their Stocks and the Buyers are not willing to Buy at the existing Price Level and Market Went down till it Adjust to its Actual Position. These are quite Common Phenomenon in Stock Market and KSE is no way close to economic Speculator which Stock Market Suppose to be.
Poor Federal government policy leads to KSE bloodbath as it plunges from 34,000 to 29,000
- Thread starter Qalandari
- Start date
SBD-3
ELITE MEMBER
- Joined
- Sep 19, 2008
- Messages
- 15,120
- Reaction score
- -9
- Country
- Location
There is a string of events
1-A correction started at 35500
2- At 33000,a foreign fund defaults on it CHFEUR bet and has to go into liquidation of its frontier markets portfolio
3-A forced selling by this fund, reduces the value of portfolios of mutual funds (94% invested) and leveraged investors
4-Investors in these funds start to redeem their investments and start to sit on cash. Another selling rally comes from mutual funds taking market to 32600.
5-A fraud is unearthed in a domestic fund and it goes into forced selling again, bailed out by the buying of its parent bank
and the market comes at ~29000.
And this spiral has the ability to go down further til 27000
1-A correction started at 35500
2- At 33000,a foreign fund defaults on it CHFEUR bet and has to go into liquidation of its frontier markets portfolio
3-A forced selling by this fund, reduces the value of portfolios of mutual funds (94% invested) and leveraged investors
4-Investors in these funds start to redeem their investments and start to sit on cash. Another selling rally comes from mutual funds taking market to 32600.
5-A fraud is unearthed in a domestic fund and it goes into forced selling again, bailed out by the buying of its parent bank
and the market comes at ~29000.
And this spiral has the ability to go down further til 27000
