- Wealth PMS
Look at this link: http://www.kse.com.pk/kse4/phps/kmi30idx.php
It’s the list of top 30 companies on the KSE – equivalent to the
constituents of our Sensex. I’ve been watching this since the Karachi Stock Exchange set a floor on prices.
It’s not good. the floor isn’t helping. Plus, because of the floor
there’s much lower volatility so the VaR (Value at risk), a
calculation based on how much prices move, has come down. This would
have resulted in lower margins being paid to the exchange. So guess
what they did, the even froze the VAR Margin at a certain level.
This is pretty much market suicide.