KARACHI, Oct 13 (Reuters) - Thinly traded Pakistani stocks ended flat on Monday as investors waited for the outcome of a meeting later on in the day about the removal of a protective floor level placed on the index.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.03 percent higher, or 2.89 points, at 9,184.24, just 40 points above the floor placed on Aug. 28.
Volume was 28,000 shares.
The KSE board of directors are due to meet at 4:00 p.m. (1000 GMT) on Monday, according to exchange officials to discuss the removal of the floor and establishment of a 20 billion rupees fund.
The Pakistan market has been left in limbo while overseas markets fell as a result of the global financial crisis spreading out of the United States.
One measure under consideration is a 20-30 billion rupees fund to pay off foreign portfolio investors who wanted to sell their holdings at a predetermined price by a certain date, the source said.
According to sources, the tentative date set for the removal of the floor is Oct. 27.
Some brokers over the weekend demanded closure of the stock market for at least 15 days, as the continuous funding system (CFS), a funding mechanism, had become illiquid.
There were also talks of some brokers defaulting, though this was denied by regulators and authorities after a series of meetings over the weekend.
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