KARACHI - The members of Karachi Stock Exchange have termed the government's new measures of launching Rs20 billion market support fund along with government guarantee of Rs30 billion to foreign portfolio investors as a move to restrict only the downside in the government listed companies and leaving the investors and brokers to evaluate the fair value of remaining 649 companies to address their risk management. Brokers commenting on the newly-announced moves of the government aimed to re-establish the confidence of investors said that government measures were doubtful and insufficient to enliven the investors confidence and also not appropriate to save the members from expected default after the removal of floor on October 27, 2008. Brokers strongly criticized the government's decision to buy only in seven government-owned companies OGDC, PPL, PSO, SSGC, SNGPL, KAPCO and NBP, adding such move would lead to mistrust between the investors and the government and said instead of concentrating only on seven scrips the amount of Rs20 billion should be utilized across the board in order to support shareholders of all stocks. Brokers said that government had adopted a policy based on "profit and loss" and when there was a policy like that there would not be any hope of recovery because when you have decided to return back any financial sector to its previous positive path, you will not have to adopt policy based on profit and loss rather you were supposed to come up with polices that could be beneficial for all stakeholders of the sector. Brokers said that recently announced measures of the government were not rescue or bailout measures but seemed to be taken to support the system, adding such announcement was only to show the foreign investors that Pakistani government has also taken rescue steps to save the investors from default and stock markets from complete collapse. Brokers said that recent decisions of the government reflected that government was only interested to save the banking sector and SECP to save clearing system. Brokers said that government had nothing to do with the losses of the members and was not aware of the actual magnitude of jolt, which the members and investors of stock markets are going to suffer after the removal of floor. Pakistan leading stock broker Aqeel Karim Dhedhi, Chairman of AKD Securities, commenting on the latest development which had comparatively studied the rocking financial boats of the stock market gave the suggestion that the government should act before the removal of floor to help loss holders which were in a tighter corner due to continued recession in the stock markets. If it was not done before lifting the floor, he said, the loss holders would suffer further losses because immediately after the removal of floor the buying in the specific stock of government companies would be done with the sanctioned money at 12 percent discount in the period of five days which is bound to adversely affect the those holder who are in crisis, Dhedhi added. Aqeel robustly pleaded that instead of giving Rs30 billion guarantee to the foreign portfolio investors the amount should be diverted to local investors which would be a wiser move. He expressed his apprehensions that the foreign investors would make a fast exit after the floor was removed, utilizing the guarantee amount to their advantage. He argued that due to the prevailing economic global crisis the investors are already hyper sensitive in making any investment any where in the world and least of all in Pakistan where the economic condition is not good as compared to other third world countries. Aqeel said that advisor to PM on finacne Shaukat Tarin has ability to bring the country out of current finacnial crisis. Analyst, Hasnain Asghar Ali said that declining international markets on the other hand continues to increase pressure on local bourses as the desperate and annoyed foreign players might not buy the assurances given by GOP in shape of put option and even if they do they might emerge as sellers of put option at 10-20 per cent decline. Senior analyst, Mohammad Sohail at JS Global believes the new fund will be managed in similar manner as last Pakistan Opportunity Fund was managed. This may help in providing some support to the market at lower levels may be after a fall of 15-20 per cent. Meanwhile, an emergency meeting of KSE members held on Thursday to review the steps taken by the government. Members in the meeting demanded that government to arrange an extra trading session on coming Saturday and buy the Badla shares of seven mentioned government companies, where the government intended to inject the amount of fund.