The stock market yesterday was a picture of complete chaos and confusion. As nervous investors scrambled to offload the benchmark KSE-100 index plunged by a massive 517 points.
The reason for the panic was attributed by brokers to a figure quoted in a newspaper which suggested that in a meeting with the State Bank on Wednesday, the Securities and Exchange Commission of Pakistan (SECP) mentioned “Rs13.4 billion as cash of the clients held by the suspended brokerage KASB Securities Limited (KSL)”.
That sent shivers down the spines as the huge amount had the propensity to pull the entire market down to the pit.
Efforts by brokers and other participants to assuage investors’ fears and calm the market proved futile.
The SECP played its proactive role as its Commissioner for Securities Market Division (SMD) Zafar Abdullah rushed in to hold meetings with the stakeholders.
About the specific amounts related to the KASB Securities, he clarified to hte media in the evening: “Securities of around Rs161bn are held in custody of KASB Securities under its CDC Participant Umbrella, out of which securities worth around Rs13.6bn belong to retail clients, whereas the amount payable to clients, in terms of cash by KASB Securities was around Rs1.2bn (and not the confused sum of Rs13.4bn).”
