Pakistani Investors Stone Karachi Exchange as Stocks Plunge

By Farhan Sharif

July 17 (Bloomberg) -- Pakistan's main stock exchange received police and paramilitary protection after investors stoned the building in protest at collapsing share values.

The Karachi Stock Exchange 100 Index fell for a 15th day, the longest losing streak in at least 18 years, prompting hundreds of investors to walk out of the trading hall, throw stones at the building and shout slogans against regulators.

``I have lost my life savings in the last 15 days and no one in the government or regulators came to help us,'' said Imran Inayat, an investor who was part of the protest.

Regulators this week eased curbs on trading, removing a 1 percent limit on price declines that led trading volumes to fall to the lowest in a decade. Shares have slumped 29 percent this year, ending a rally that had pushed the key index more than 14- fold higher since 2001.

``There has been some level of mismanagement by the authorities,'' said Habib-ur-Rehman, who manages the equivalent of 6.5 billion rupees ($90 million) in Pakistani stocks and bonds at Atlas Asset Management Ltd. in Karachi. ``This may be due to their misperception that they can prevent the market from falling. Investors have to learn to bear losses as they do gains.''

The Karachi Stock Exchange won't suspend trading, Chief Executive Adnan Afridi said by telephone. Investors were also protesting outside the Lahore Stock Exchange, Dawn News television reported.

In Karachi investors broke windows, threw plant holders in the parking lot of the building and at least one protester was injured.

The benchmark Karachi Stock Exchange 100 Index dropped 436.63 points, or 4.2 percent, to 10,055.25 at 12:36 p.m. local time.

To contact the reporter on this story: Farhan Sharif in Karachi, Pakistan at fsharif2@bloomberg.net