January 24, 2003	Friday	Ziqa’ad 20, 1423

LAHORE, Jan 23: The badla rates at the Lahore Stock Exchange (LSE) on Thursday declined to 45 per cent from an average 118 per cent on Tuesday.

The badla amount has also slid from Rs2 billion on Jan 16 to Rs1.4 billion, according to the LSE.

During a meeting of the LSE members held on the issue of badla financing, they demanded that the badla rates should be capped in line with the current practice at the Karachi Stock Exchange (KSE).

The members, however, noted with satisfaction that the market was allowed to self-correct itself by letting the badla rates find their own level and allowing the market forces work without hindrance.

The meeting noted that during May 2002 the market declines caused by the Indian military build-up on the borders with Pakistan, the LSE had allowed the badla rates to find the market level. It said the system had worked much better in comparison with the country’s other stock exchanges.