ISLAMABAD, May 30: The Market Control and Surveillance Department of the Karachi Stock Exchange (KSE) had provided all data about share trading, bids and offers to the Securities and Exchange Commission of Pakistan (SECP) in 2005, but it was deleted from computers in what appears to be a move to protect people who had benefited from the stock market crash, a document available with Dawn reveals.

The SECP authorities have repeatedly denied having the data of offers and bids, asserting that it had never been stored by the KSE. The SECP stand led to failure of a US firm, Diligence, to reach any conclusion at the end of its recent $1million forensic probe.

According to the document, the KSE had provided data of shares’ trading, bids and offers and even cancelled and amended bids and offers for ready and futures markets and carry-over-transaction (COT) to the SECP.

The data pertained to a period from January to April 2005, when air was first pumped into the market and then finances were withdrawn, causing the bubble to burst and drowning $13 billion, mainly belonging to small investors.

The data provided to the SECP related to shares of Oil and Gas Development Corporation (OGDCL), National Bank of Pakistan (NBP), D.G. Khan Cement (DGKC), Pakistan State Oil (PSO), Pakistan Petroleum Ltd (PPL), FFBI, PTCL and other major companies.

The document also shows that the data about opening price, closing price, high price, low price, the number of shares and traded value on a daily basis relating to 31 companies, was provided to the SECP from Sept 1, 2004, to April 11, 2005.

The companies are: ACBL, BSBF, DGKC, DSFL, ENGRO, FFBL, FFC, FABL, LUCK, MLCF, MCB, NBP, NML, OGDCL, PICIC, POL, PSO, PTC, PICB, SEPCO, SNGPL, SSGC, SNGP, TELE, BOP, HUBCO, UNBL, WCCL and PPL.

The KSE also provided member-wise details of top 10 companies having the largest impact on the KSE 100-Index in respect of their trading on April 18, 2005. The information included details of top 30 buyers and sellers.

According to the document, the SECP had also asked the KSE for information about time-wise and date-wise details of top buyers and sellers, net buyers and sellers, and all buyers and sellers.

The section-2 of the document provides an analysis of the top net buyers and sellers in March 2005 contracts, showing that top 15 net sellers constituted 89 per cent of the total sale and top 15 buyers constituted 52 per cent of the total purchase.

The document also describes how the phasing out mechanism hindered the start of margin financing as lending banks were not geared up. This led to an unprecedented rise in the volume of futures market in March 2005.

Therefore, the futures market that was previously 15 per cent to the ready market volume increased so much that at times it touched almost the same level as that of the ready market.

There are also details of the net profit distribution of futures contracts amongst 10 top brokerage houses.