ISLAMABAD, Nov 5: The Securities and Exchange Commission of Pakistan (SECP) has announced that it will initiate an inquiry into Monday’s market manipulation in the shape of rumours about the ouster of President Musharraf in counter coup that caused Karachi Stock Exchange to plunge by 635 points in a single day.

The commission has taken the cognizance of the extreme volatility of the stock market, which was precipitated to a very large extent due to malicious rumour mongering by certain “vested interests”,” said the official spokesperson of the commission in statement issued here on Monday.

He said the SECP would carry out a detailed investigation to ascertain market manipulation and unfair trade practices. The commission has urged market participants to desist from rumour mongering.

Sources told Dawn that the SECP believed that the rumours about the ouster of Musharraf in a counter coup by Vice Chief of Army Staff Gen Ashfaq Pervez Kiani were created inside the stock market by some vested interests (which also include some brokers) who were not satisfied with the natural bearish trend in the bourses after the imposition of emergency.

These sources said that probably the Securities and Exchange Commission of Pakistan would begin the probe from Tuesday, which will be one of the most difficult investigations in the history of the commission as the it would be hard to bring forth evidences of whether the rumours reached the market from outside or whether speculations were generated inside the stock market and spread from there taking the whole country into its lap by afternoon.

They said the rumours did the damage as the government was very slow to clarify the situation by issuing a denial in time. The denial came when the trading sessions were over.

Market sources said that the first trading session on Tuesday would ascertain whether the government’s denial has restored the shaky confidence of investors.

Opinion

Let women be, control the man
Updated 11 Apr 2021

Let women be, control the man

Men need to be educated and then read the riot act. The enforcement of the law must be merciless in such cases.
Twixt torch & tray
11 Apr 2021

Twixt torch & tray

Some may say that the lawyers’ indignation is not without merit.
Behaviour bond
10 Apr 2021

Behaviour bond

States have turned the imitation of repressive laws into an art form...

Editorial

11 Apr 2021

Dissension within PTI

WITH the dust from the PDM’s implosion still not fully settled, the PTI is now faced with growing dissension from...
11 Apr 2021

Power to arrest

A SUPREME Court verdict announced on Thursday spelled out what might be considered a self-evident truth in any...
11 Apr 2021

Unequal vaccine distribution

IT is in times of crisis that we often see the best — or worst — of humanity. In this regard, the pandemic has...
10 Apr 2021

Greater tax burden

THE FBR’s tax target of Rs6tr for the next year under the IMF-mandated fiscal adjustment policies will increase ...
UK travel ban
Updated 10 Apr 2021

UK travel ban

Pakistan continued to allow passengers to arrive without quarantine requirements.
10 Apr 2021

IS in Mozambique

IT was not too long ago when the dreaded shock troops of the self-declared Islamic State group were rampaging ...