Pakistani Investors Stone Stock Exchange
"There has been some level of mismanagement by the authorities,'' said Habib-ur-Rehman, who manages the equivalent of 6.5 billion rupees in Pakistani stocks and bonds at Atlas Asset Management Ltd. in Karachi. "This may be due to their misperception that they can prevent the market from falling. Investors have to learn to bear losses as they do gains.''
(emphasis added)
>
This looks like an Onion parody -- but its not!
>
Surprisingly, no one in Karachi blamed short sellers or rumors . . .
Pakistan investors stormed out of the Karachi Stock Exchange, smashed windows and cursed regulators after the benchmark index fell for a 15th day, the worst losing streak in at least 18 years.
"I have lost my life savings in the last 15 days and no one in the government or regulators came to help us,'' said Imran Inayat, 45, a protester and a former banker who retired early and said he lost 300,000 rupees ($4,175) on the market.
Police surrounded the exchange after hundreds of investors stoned the building and shouted anti-government slogans. Securities and Exchange Commission of Pakistan, which imposed and then removed a 1 percent daily limit on price declines this week, had attempted to halt a slide that wiped out $30 billion of market value in three months, threatening to undo a 14-fold rally since 2001.
We better send SEC Chairman Cox to Karachi -- he'll stop the rumors and short selling pronto!
>
>
UPDATE: July 18, 2008 5:46am
More photos, via the NYT
Investors destroyed a door at the Karachi Stock Exchange in Pakistan on Thursday to protest slumping share prices.
Tires burned Thursday in front of the stock exchange in Islamabad, Pakistan, as protesters vented anger over a two-week plunge in share prices. While Wall Street prices rose, Pakistani shares fell over concern about handling of the ailing economy.
>
Sources:
Pakistani Investors Stone Exchange as Stocks Plunge
Farhan Sharif
Bloomberg, July 17 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVZ47MTtPsPY&
Furious investors trash Karachi stock exchange
Farhan Bokhari in Islamabad
Published: July 18 2008 03:00 | Last updated: July 18 2008 03:00
http://www.ft.com/cms/s/0/e6504c8e-5460-11dd-aa78-000077b07658.html
Pakistani investors attack bourses after share collapse
Rhys Blakely
The Times, July 18, 2008
http://business.tim
esonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4354306.ece
Pakistani Bear Market Has Investors Raging in the Streets
JANE PERLEZ
NYT July 18, 2008
http://www.nytimes.com/2008/07/18/world/asia/18pstan.html
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Thursday, July 17, 2008 | 09:43 PM | Permalink
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Comments
I haven't heard much about "privatizing" social security lately. Perhaps they can sell this idea in Pakistan.
Posted by: njdoc | Jul 17, 2008 9:52:16 PM
These people want to be bailed out! Who do they think they are? Americans?
Posted by: Bluzer | Jul 17, 2008 9:55:10 PM
Eat my shorts! Dude!
Posted by: simon | Jul 17, 2008 9:55:22 PM
The invisible hand was last seen requesting asylum at the US embassy.
Posted by: Jon H | Jul 17, 2008 9:58:18 PM
Jon H: Actually, it looks like the Pakistani government is more or less letting the market take its natural course, while it's the US that's trying to stop the invisible hand from doing its thing.
Posted by: jag | Jul 17, 2008 10:04:43 PM
The context, not mentioned here, is that Pakistan UNQUESTIONABLY is the kind of place that privitizes gains (for a coterie) and socializes loses.
Posted by: Mean Mister Mustard | Jul 17, 2008 10:05:08 PM
The main difference between Pakistani and US investors is the traditional garb.
Posted by: Steve Barry | Jul 17, 2008 10:05:13 PM
Barry, when you put things like this up, it almost makes it seem like you feel those people are justified. The only reason they are not going crazy about short selling is because they don't know what short selling is.
~~~
BR: Justified? WTF ?!?
Roman,
I previously banned your IP address for the distinct honor of having posted the single dumbest comment I've seen. (Here: http://bigpicture.typepad.com/comments/2008/05/trouble-in-the.html#comment-form) You've met your prior match.
No Soup for you. Come back one year!
Posted by: Roman | Jul 17, 2008 10:20:28 PM
This looks like a job for the Plunge Protection Team.
Posted by: GerryL | Jul 17, 2008 10:21:39 PM
There's one perfect way to rid the world of all financial problems: eliminate money.
Most other problems will disappear too.
Posted by: Maldoror | Jul 17, 2008 10:25:44 PM
" Actually, it looks like the Pakistani government is more or less letting the market take its natural course, while it's the US that's trying to stop the invisible hand from doing its thing."
It's bad form to explain a joke, but my point was that these rioters are - though they may not know it - trying to attack the invisible hand - which, of course, is inherently absurd. Thus the target, the invisible hand, seeking shelter and protection from the mob.
I could have picked any embassy, but the US came to mind. The US played no other part in my point.
Posted by: Jon H | Jul 17, 2008 10:27:47 PM
Don't those crazy Pakistanis know this is a buying opportunity?!!??!
Where's the Pakistani version of Don Luskin or Dennis Kneale to reassure them that the bears are wrong and everything is just peachy?
Posted by: Todd | Jul 17, 2008 10:30:55 PM
do 403(b) holders even know how to that?
Posted by: Mark E Hoffer | Jul 17, 2008 10:31:51 PM
Corner of Broad and Wall tomorrow morning, 9:15. Bring pitchforks.
Posted by: Scott Frew | Jul 17, 2008 10:35:57 PM
I think I see Jerry Bowyer trying to keep the peace in the crowd.
Posted by: Steve Barry | Jul 17, 2008 10:37:17 PM
I'd hate to see their reaction to a foreclosure notice.
Posted by: John F. | Jul 17, 2008 10:47:51 PM
Barry ... that is absolutely CLASSIC. Thanks for brining it to my attention. Priceless!
Posted by: Donny | Jul 17, 2008 10:52:51 PM
Scott Frew, that's a great idea for one of those "flash mob" events! (Could also organize in front of Tangelo's place. But, that wouldn't be in line with what you had in mind...)
Steve Barry, great one-liner up at the top there!
Posted by: wunsacon | Jul 17, 2008 10:56:39 PM
Where's the ultrashort pakistani ETF?
Posted by: Greg B | Jul 17, 2008 10:58:46 PM
Now THAT'S the kind of market regulation I like. Give those people a few AK-47's and they would really straighten everything out.
Posted by: MexPat | Jul 17, 2008 11:12:17 PM
Could you NYC people please get out on Wall Street and create some scenes like those? Need to shake things up!
(I'd help but all the way out on the West Coast).
;-)
Posted by: JoJo | Jul 17, 2008 11:26:30 PM
Now, THAT's what I excepted in MUMBAI on MLK day when the market dumped by 15% and circuit-breaker rules were triggered.
Damnit - hartals, bandhs, stone-throwing, effigy burning, lathi-charges are part of the tradition of the sub-continent - but NOTHING, it was all quiet on the Mumbai front - the buggers have got too westernized - they all want bailouts now I suppose.
Thank you Pakistan for showing the right spirit and keeping the traditions alive - no wonder you beat us at cricket - deservedly so.
-K
Posted by: sk | Jul 17, 2008 11:29:19 PM
Send Kudlow. He can explain to them that if they would just cut taxes for the wealthy, their stock market would go back up.
It's gotta work somewhere, eh ?
.
Posted by: VJ | Jul 17, 2008 11:34:03 PM
Separately, this has GOT to be a buying opportunity if you are of the contrary investing bent - except they are only down 25% YTD
http://www.ksestocks.com/index.php?page=Interactive_Charts
Sheesh, you get riots for a 25% loss YTD
There are some Pakistani ADRs but they are .PK variety and volume is really low - no ETFs that I can see - they HAVE To be some stocks on the .L exchange but I can't find any - besides it hasn't dumped enough for me to treat this as a buy opportunity - but it HAS to be a classic contrary signal surely - beats the magazine cover indicator for sure.
-K
Posted by: sk | Jul 17, 2008 11:41:03 PM
This is what will happen in the US when our children and grandchildren wake up to what we have done to them financially.
We debate the pros and cons of FNM/FRE bailouts, stimulus payments, mortgage bailouts, Iraq war, etc, etc.
In fact, we are not willing to pay a dime for any of those things ourselves, we borrow the money and force our kids and grandkids to pay for them. Without having any say-so.
Taxation without representation because we, in our self-indulgence, won't tax ourselves to pay for these things.
All debate about these issues is bullshit unless the debate includes the burden of our paying for the bailouts, wars, etc ourselves. Wanna see some reality in Paulson's proposals: include "pay as you go" as part of the deal.
TomD
Posted by: tomd | Jul 17, 2008 11:43:22 PM
