ISE 10-share Index dropped by 74.58 points

The ISE 10-share index dropped by 74.58 points to close at 2,610.70 points from its previous level of 2,685.28 points.

The Islamabad stock market closed in the red zone on Wednesday on fears that the United States might cut aid to Pakistan after assassination of Osama bin Laden on Pakistan’s soil.

Trading Volume: However, total turnover increased to 0.006 million shares from 0.004 million shares at the opening of the day, showing a difference of 0.002 million shares.

About Companies: Of the total 126 participant companies, 16 climbed upward and 110 turned negative.

From: Market Watch

Unified trading at LSE, ISE from Dec

The Lahore Stock Exchange (LSE) has planned mock trading of Unified Trading System (UTS) by the end of current month.

“The UTS would be a common platform for trading in commonly-listed securities on a real-time basis through execution of orders entered by members of Lahore and Islamabad Stock Exchanges,” said Hamid M Imtiazi, Managing Director, LSE, while speaking at a press conference here on Tuesday.

He informed that computerisation work has already been completed at the LSE in this regard while integration of UTS with ISE was being made.

CFS limit raised to Rs 55 billion: VaR implementation delayed

After a detailed meeting with the stock exchanges management, the Securities and Exchange Commission of Pakistan (SECP) on Thursday enhanced the CFS limit to Rs 55 billion for Karachi Stock Exchange (KSE); Rs 10 billion for Lahore Stock Exchange (LSE) and Rs 5 billion for the Islamabad Stock Exchange (ISE) from November 6.

It also delayed implementation of value at risk (VAR) management system till December 4. It was also due to come into effect from November 6. The SECP and stock exchanges management also reached an amicable solution to VAR management system and institutional margining. The SECP team was headed by its chairman, Raziur Rehman Khan. He was assisted by securities market division commissioner Rashid I. Malik.

CFS cap raised to Rs55bn, badla banned

Continuous Funding System (CFS) cap has been enhanced to Rs55 billion from Rs24.5 billion for Karachi Stock Exchange.

The new CFS cap for Lahore Stock Exchange has been enhanced to Rs10 billion and Rs5 billion for Islamabad Stock Exchange, with effect from October 2, 2006. The decision was announced following a meeting between SECP and management of three exchanges here on Monday.

Reviewing the August 02, 2006 decision taken by SECP, the meeting observed that work on SECP’s proposal regarding CFS MK II was underway. However, to improve the risk management system and reduce the systemic risks associated with the existing CFS as well as in-house badla financing, it was important to take certain measures in the interest of the market for an interim period, a statement issued by SECP said.

Test trading session finds LSE and ISE ready for merger

Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) have jointly conducted a successful mock-trading session here on Saturday. The information technology (IT) experts of the exchanges said the operational capacity and system topology were measured and subsequently found satisfactory. The successful completion of mock-trading session has further strengthened the merger scheme of two bourses. Now, the ISE and LSE both were technologically ready for merger, experts added.

Meanwhile, the ISE Chairman Abdul Waheed Jan told this correspondent the board meeting would be held on March 16 to give formal approval to the merger of ISE and LSE. Both the exchanges had already agreed on setting up of a new company to promote integration of stock exchanges in the country.