KARACHI STOCK EXCHANGE: LEGALIZED GAMBLING IN DISGUISE.
By SHAFIQ KHAN
CANADA
A FRIENDLY ADVICE TO SMALL INVESTORS.
COPIES OF THIS NOTE TO THE PRESIDENT OF
THE WORLD BANK/IMF/GOVERNOR OF THE STATE BANK
OF PAKISTAN /CHAIRMEN OF SECP.
CHAIRMEN OF THE STOCK EXCHANGES OF NEW YORK,
DOW JONES,TORONTO STOCK MARKET, BOMBAY, LONDON,
TOKYO, PARIS, HONG KONG, SINGAPORE.
Before I could write what happened in Karachi Stock exchange (KSE) from March 19, 2005 to March 25, 2005, I would like to quote a news item carried by the Pakistani press yesterday:
“On March 24, 2005, the small investors of Karachi Stock Exchange carried out a protest demonstration in the parking area of the KSE building against the manipulation and thugism of giant investors of the KSE. The demonstrators also blamed ‘newspapers’ for the jugglery of the KSE during the last 5-6 days, where KSE 100 index lost about2400 points. The news further said that, the protesters threw stones on the offices of the KSE brokers and so, they had to close their offices and trading was stopped”.
On March 11, 2005, the KSE index was at 9600. It is on record that on March 12, 2005, I sent a detail note to the Pakistani newspapers under the title “THE KARACHI STOCK EXCHANGE IS SITTING ON A DYNAMITE”.
I know the typical corrupt mentality of the Pakistani press so I posted the same article on various Pakistani, Indian,Canadian and Asia Pacific Discussion Forums and Yahoo Groups, including the Asia Times (Hong Kong), Abdul Wasey (India) and Pakcanasia Concourse (Canada), which are widely visited by Pakistanis and overseas Pakistanis.
Unfortunately, non of the Pakistani newspapers carried the article as obviously, they themselves are part of that filthy rich group of THUG INVESTORS. Otherwise, they would have saved thousands of poor small investors who lost their hard-earned money overnight. This is also interesting that Pakistani press is the only press in the world which hardly carries expertise and advices by the business analysts and economists frequently in their papers for the guidance of the investors. In foreign countries, there are separate TV channels, newspapers and every single paper everyday carries analysis on the stock market for the guidance and education of the investors. On the contrary, the Pakistani press always try to cover the ass of KSE thugs that, whenever it loses few hundred points, their paid incompetent business commentators say, “it was expected because of this and that and term as correction”. Those jerks don’t know other than that.
I do not want to repeat the article here but do want to recap an important point for the knowledge of the small investors and general public that when the KSE 100 index was 9600 points on the close of business of March 11, 2005, it was one million times guaranteed that the Thugs of KSE and bureaucrats of SECP (Security Exchange Commission of Pakistan) and the State Bank of Pakistan would definitely try to touch the 10,000 points mark to show the world and brag that, they are the best stock market in the world and during the days of President Musharraf, Pakistani’s economy has touched the Himalayas. So on March 15, 2995, the KSE hit 10,000 points and closed at 10303.13.
Had the market solid base and progressed on the real numbers, it would have stayed on the 10,000 points for days and weeks of would have fluctuated by 200-300 points everyday. But since entire rise was fake, fabricated and based on the Satanic idea of those skunk investors to pocket profit at the cost of small & middle investors so, it couldn’t even keep the stability of 10,000 point even for ONE day and started descending down from the very next day and in 6-7 days, it lost almost 2400 points. All Blue Chip stocks like OGDC, PTC, NBP, BOP, NML, ICI, PPL, PSO, FFC, ENGRO, ACBL, ATRL and likewise are down by Rs.50.00-
Rs.60.00 or more.
It means, if some poor small investor had 1000 OGDC/NBP or any such stock, he lost Rs.50,000.00 in 6 days. I am not talking if some one had more than one stock and numbers were 3-4000 shares!
I have received several letters from all over the world after reading my article “The Karachi Stock Exchange Is Sitting On A Dynamite” telling me their anguishing experience in last 5-6 days. One e-mail is like, the gentleman is crying when he says, he had some PTC, PPL and OGDC stocks and lost Rs.6,00,000.00 in 6-7 days. He wrote, he did not even have cash to pay back the losses to the brokerage company he sustained.
If your memory is sharp, you would remember that almost identical situation was happened in September 2003, when the 100 index was down by 800 points in 3 days. But since the weasels had bigger planning to reach 5000 and than 10,000 mark so it took them 18 months to accomplish the ‘dirty goal’.
Just imagine, on August 29, 2004, the KSE 100 index was 4461.47. It means, in 18 months, the index shot up to 10,300 points adding 5840 points! Could the KSE, SECP, State Bank of Pakistan and other government officials tell the public that is there any precedence in the history of stock business that any stock Market in the world added 5800 points in 18 months?
If you look NYSE, Dow Jones, Toronto Stock Exchange and others, they are standing on their present position for decades and fluctuate everyday with TWO digit numbers, 13 points, 42 points, 36 points, 07 points etcetera.
It is a famous Urdu saying," Jhoot kay paoon kahan" ( liar, liar, your paints are on fire/Liar has no legs ). The same way, since KSE was rising on fake points and conmen of KSE were shouldering it’s ‘dead body’ so as soon as Thugs touched 10,000 points, it started falling down like bubble.
In September 2003 and even after that, in last 18 months, I have written dozens of articles, notes and letters to Pakistani media, government of Pakistan officials, SECP, World Bank President and other International Organizations about the jugglery, acrobatics and manipulation of Karachi Stock Exchange freaks.
THE KSE THUGS AND THEIR EVIL STRATEGY!
Let me break the news that dropping of 2400 points or more in another few days or their crippled and bugger excuses of bamb blasts, Balochistan situation or any other queer excuse has nothing to do with these numbers. As a thief is looking for an appropriate opportunity to break in to some one’s house or a killer waits for an ambush or a shooter waits for the prey to come out of the bushes, the same way, these THUGS of Karachi Stock Exchange wait for an opportunity that how could they drag down the market to lower number and than take up multiplying their profits.
Just One Example:
The OGDC was Rs.192.00 on 11th March and today it is at Rs.136.00 (down by Rs.56.00). The Thug will buy the stock at this price and tomorrow market will start climbing up again and eventually not only reach to Rs.192.00 but beyond that. That’s how, those profiteers pirates play with the index to make money at the cost of small investors. UNQUOTE:
Do you remember what hoarders do in Pakistan with Potato, onion, sugar and other commodities of daily use? They buy from the local market in Pakistan at a lower rate and export to the middle East and after few weeks bring the same stuff back to Pakistan at higher prices or after hoarding at lower rate bring back the same on higher rate.
HOW ONE STOCK COULD GO FROM RS.60.00 TO RS.160.00 IN FEW WEEKS WHEN APPARENTLY THERE IS NO MIRACLE HAPPENED TO THE COMPANY?
If the National Bank of Pakistan is declaring 20% dividends after every quarter for last 4-5 quarters and the share price was Rs.60.00 how come the same share of NBP could go from Rs.60.00 to Rs.165.00 in 4 weeks when nothing extraordinary happened to National Bank’s profitability or liquidation position? The same rule applies to every single stock. You check every single stock of the market and try to find out why without any reason the stock went from Rs. 27.00 to Rs.300.00 for a particular company? UNQUOTE:
Investment in stocks means a long term investment to get profit in the shape of dividends, Right shares or bonus to increase their investment. This is a business like any other. I understand, a slight hanky panky happens in every business but, not as KSE THUGS do as they are sitting in Las Vegas. Since Pakistani stock market purely runs on betting/gambling(satta baazi) so it’s like sitting in the casino and you know what happens in gambling? You could become millionaire in minutes or lose your clothes on the same time.
The only reason satta system is practiced because the big investors (THUGS) control the market because of the substantial amount of their holding of stocks. So they drop the market to buy the stocks on lower prices and than bring back the same stock to a higher level to sell it.
Let me tell you folks, from Monday, you might witness the market rising again or after another one or two sessions, you will see market coming back gaining 300-400 points in 2-3 days in a row so the people could forget the catastrophe of 2400 points loss. That’s the way, the thugs will do the face saving telling the people and the world," see, we are back again". But that’s what I am trying to prove that how KSE thugs do business and make money.
What will happen than, the poor small investors who have already lost substantial amount of money would be panicky at that time and as soon as the market started going up, they would sell their stocks in rush and the Thugs would buy the same OGDC at Rs.135.00 which was at Rs.192.00 seven days before. This hide and seek game goes on and on…
This is what happens when a Prime Minister or the President plunders the country day and night and sends money to Swiss Banks and buys properties all over the world and than another election takes place or some army general comes to power after throwing out the earlier one and tells the country that, he would purge the society from all corruptions and malpractices. But after few months, he and his team starts the same game of ‘monkey distribution’ which his predecessors did. This way, we have seen dozens of Presidents and Prime Ministers in 58 years and nothing changed in Pakistan.
AN ADVICE TO THE SMALL INVESTORS!
By now you know that, this is not a stock business and is a pure gambling so, either you should invest in Modarbas, mutual funds or solid stocks, where you could get guaranteed dividends every quarter or six-monthly instead of playing with blue chip stocks which rises Rs.13.00 one day and drops Rs.60.00 in 6 days. Let the Thugs do the gambling and you save your hard-earned money.
SHAFIQ KHAN
CANADA
[email protected]
March 25, 2005