Pakistani Investors Riot Over Falling Shares Prices- Pakistani investors and traders ransacked stock exchanges in Karachi, Lahore and Islamabad today, reacting furiously to a share-price rout that has decimated the life savings of many.
- Police and paramilitary officers were drafted in to protect the Karachi Stock Exchange after a thousand-strong mob stoned the building, smashed windows and chanted anti-government slogans. In the eastern city of Lahore, investors burnt tyres and blockaded the local bourse.
- The violence followed a 35 per cent fall in the value of the benchmark Karachi Index in the past three months on the back of concerns over the stability of Pakistan's fragile coalition government, rocketing inflation levels, and the weakness of the rupee.
- Protestors took to the streets following the Securities and Exchange Commission of Pakistan's removal on Monday of a 1 per cent daily limit on share price declines and a ban on short selling. The measures had been imposed to stabilise the market. After they were lifted shares fell more than 11 per cent in three trading sessions, wiping out another £2.5 billion in value.
- Kauser Javed, the head of the Small Investors Association, demanded that share prices be frozen at their current levels. He said: "If things continue this way, you will hear of suicides. The regulators only favour big brokers and investors."
- Sayem Ali, the Standard Chartered economist, said: "Together with inflation, a depreciating exchange rate and worries over fuel prices, the main risk to macroeconomic stability comes from the weak coalition government."
And... regulators only favor big brokers and investors? Check.
I continue to be amazed in Europe and Asia people take to the streets when social issues (or financial in the case of the oil/energy protests across Europe). Here we, the sheep, just nod quietly as the great transfer of wealth from the many to the few continues unabated year after year. Hell, we don't even bother to show up to vote en masse. I'd pay good money to see the terrified look of Paulson as a mob of angry Americans descended on Washington. :) One can dream.
4 comments:
Nice post! that market was up an average of 45% a year over the last 5 years. I made good money sold when the 5 year weekly trend line broke down. Thank God I missed this frenzy.
PS. Do you always have to put in word verification and username and password or is there another option?
Hi Q
I think to avoid spam its a necessary evil.
otherwise we will be getting comments about how to enlarge the male anatomy and cheap, prescription free drugs for $2.
I feel like a Pakistani investor today with this commodity implosion :) Amazing how quickly things turn.
Now I know what these bank investors feel like day after day for weeks on end hah.
Mark,
I really love your blog. I have a similar way of investing as I think you do. Getting killed today as I am long Fertilizer, Coal, Oil & Gas exploration you get the picture, the only thing not getting killed that I have is Gold miners. This is painful to watch, when will this day end.
I have much to be greatful for though I was up about 30% for the year, gave back a lot today. Not adding any positions today, I see no support and the selling is without discretion.
Need to find some supports Unless, there is a remarkable turn, this is the beginning of a big selloff, the five year commod $CRX broke down today, and there is pain ahead I am sad to admit.
I wonder with POT and MOS ready to report this month will that put a floor under at least the fertilizers.
Thanks for your wonderful site.
Q
Thanks, my open question then will be. Where does one invest for growth?
If another person tells me healthcare or technology I will go bonkers :)
Never a good day when your leaders are housing and financials.
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