Karachi Stock Exchange (KSE) on Thursday sold out a membership card of one of the defaulter members through accepting the highest bid of Rs 55 million. Sources said that in all six bids were received to buy the cards. The highest bid was given by a local firm M M Commodities, which was accepted.
The two members of the exchange namely Ismail Abdul Shakoor and Sikandar Bagasra were declared defaulters as they failed to pay their dues. About the sale of the second card, sources said that KSE wants to sell it at the same amount. For this, the exchange will ask the second highest bidder to increase his bid to Rs 55 million, otherwise, the KSE board will take some other decision in this regard.
The selling of the KSE card at Rs 55 million shows the gravity of the situation at the local bourses, which has also started affecting the value of its membership, market participants said adding that the said card was sold out at much lower price. The value of this card was much higher just a few months back as on card was sold out at Rs 140 million some five months ago, they added. The KSE members are facing hard times as the market has declined by over 42 percent from its all-time high level recorded in April this year.