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Monday, 24 September, 2001, 15:20 GMT 16:20 UK
Pakistan's exchanges re-open
Traders at the Karachi Stock Exchange
Investors rushed to sell stocks as Pakistan's markets reopened
Pakistan's stock markets fell steeply when they resumed trading on Monday after being closed for a week.

Investors pulled out of stocks amid fears that any US military action against neighbouring Afghanistan will intensify the crisis facing Pakistan, traders said.

"Investors are desperate...it seems they were waiting for the market to open to offload their holdings," said a dealer at IP Securities in Karachi.

Pakistan's main exchange, the Karachi Stock Exchange, saw the benchmark 100-share index fall 3.14% on Monday to close at 1,103.91

Limiting the falls

In an attempt to contain the falls, the KSE set a narrower daily limit for share movements.

Previously a share could fall 25% on any one day before being suspended, but the KSE has now slashed the daily limit to 5%.

Pakistan's three exchanges - in Karachi, Lahore and Islamabad - had been due to re-open on 20 September, but the regulator decided they should remain closed for a full week.

The three exchanges were closed following the 11 September attacks on New York and Washington.

As US attention turned to Afghanistan, the KSE's 100-share index of the Karachi Stock Exchange shed more than 9% as investors rushed to sell their shares.

 WATCH/LISTEN
 ON THIS STORY
Fahran Bokhari, FT correspondent in Pakistan
"This is a very bad moment for investors in the Pakistani markets"
See also:

18 Sep 01 | South Asia
Karachi protest against US
17 Sep 01 | South Asia
Indian markets crash
12 Sep 01 | South Asia
US attack hits Karachi market
24 Sep 01 | Business
Stock markets rally
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