BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Thursday, 23 May, 2002, 13:35 GMT 14:35 UK
Pakistan shuts stock market
Pakistani stock broker
The exchange initially blamed technical problems
Pakistan's stock exchange has been shut after heavy trade, over fears of a possible war between India and Pakistan, caused its trading system to shutdown.

"We (the management) reviewed the prevailing situation at the market and decided to close the market for Thursday," Nauman Ahmed, managing director of the Karachi Stock Exchange, said in remarks quoted by AFP news agency.


We have taken this decision to avert further falls in the market and to facilitate the brokers who were still not able to settle their trade

Nauman Ahmed
Karachi Stock Exchange
Since Friday, when serious fighting began on the Kashmiri border, the 100-share index has fallen by 16%, to close at 1,527.58 on Wednesday.

Tension between India and Pakistan, which have around a million troops at their borders, has escalated after a Pakistan-based, Kashmiri separatist attack last Tuesday killed 35 people, mostly wives and children of Indian soldiers.

India's leading share index closed down 1.9% at 3,114 on Thursday, a new low for the year.

Bombay's stock market has lost 9.3% since the fighting began.

Trading problems

Early reports from the Karachi Stock Exchange blamed the closure on technical problems with the trading system, which were caused by the volume of trade.

"We have taken this decision to avert further falls in the market and to facilitate the brokers who were still not able to settle their trade," Mr Ahmed said.

"At the moment there is no crisis in settlement or clearing. The exchange has a backlog of feeding in those transactions because we have considerable share volumes," he said.

Mr Ahmed said the exchange would try to re-open on Friday.

On Wednesday, the exchange again lowered the limit by which individual shares can fall in a single day to 2.5% from 5%, the second cut this week.

Click here fror background reports and analysis

Key stories

Eyewitness

BBC WORLD SERVICE
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes