KARACHI, Pakistan (AP) — Violent protests erupted at Pakistan’s main stock market, as growing economic and political uncertainty pushed Pakistani shares to a new 18-month low.
The exchange’s main index dropped more than 4 percent on Thursday before recovering slightly to close 2.7 percent lower at 10,213 points. The index is at its lowest since January 2007 and has fallen about 36 percent from an April peak.
With share values dropping for 15 straight sessions, officials said more than 200 small investors, some of whom rent small offices in the exchange building, gathered in its main hall to demand a halt in trading.
When the exchange administration declined, some protesters smashed windows in the exchange and nearby banks, said Mohammed Aslam, the exchange’s security chief.
An ociated Press reporter saw broken lights and window panes littering the floor of the exchange. Television footage saw police shooing the demonstrators away from the building.
Pakistani shares are tumbling amid doubts about the three-month-old government’s ability to survive economic problems including runaway inflation and wide trade and budget deficits.
The uncertainty is compounded by growing U.S. pressure to clamp down on militants launching attacks into Afghanistan, casting doubt on the government’s hopes of negotiating peace deals to curb rising Islamic militancy also threatening Pakistan.
Source: http://www.cnn.com/2008/WORLD/asiapcf/07/18/pakistan.market.ap/index.html
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