Market Close !

Equities witnessed another dull day (USD67mn worth shs traded) and remained sideways mainly attributable to the new risk management system. Trading kicked off on positive note as investors cheered media reports confirming USD1bn aid from Japan (as per FoDP commitment). Rumors in the market that many brokers are not able to execute orders as new the risk system requires client level margin calls dented sentiment and forced investors to remain sidelined. We did expect market to face hiccups as measures to strengthen and effectively manage systematic risk are implemented and brokers get comfortable with the latest system. Moreover, slowdown in FII participation (less than USD4mn yesterday) and likely absence of significant foreign flows today, possibly due to fluid security situation, indicated by market volumes ensured locals remain cautious at current levels.