KARACHI, July 19: A notice circulated among members by the Karachi Stock Exchange (KSE) on Tuesday evening stated that the increase in the COT value in excess of Rs12 billion was due to system limitation of order processing.
It said: “Furthermore, an increase at any given trading day could be to the extent of value of last order of 500,000 shares in particular scrip.”
Analysts observed that the piecemeal orders from the regulators on COT were confounding the confusion of the market. On Tuesday, the KSE-100 index plunged by another 117 points on top of the 98 points decline of Monday, part of which was attributed by the analysts to the Monday’s notice of the KSE, which laid forth a new procedure for the availability of the capped Rs12 billion in outstanding COT positions.
“The first come, first served” basis notified by the exchange on Monday was said to have made investors make a dash for the COT and result in confusion and a plunge in the share values.
As share prices continued to drop like ninepins with very thin volumes, glum investors were desperately watching out for some silver lining. Many were now pinning hopes on the Shaukat Tarin’s committee recommendations.
