[SHAFIQ KHAN]

The Karachi Stock Exchange reached culmination of it's existence at 10,300 points of 100 Index on March 15, 2005 and in 8-9 sessions plunged into the ditches losing 3300 points from March 16 to March 28, 2005.

So everything is record now for KSE.........good and bad.
In last two weeks, I wrote about half a dozen articles and notes unmasking the actual face of KSE swindlers.
Since my write-ups were posted on several Discussion Forums and Websites so, a large number of brothers and sisters have sent me e-mails and reacted to my writings directly and indirectly or by posting their return-messages. Readers have come up with various comments and thoughts but, my point is very simple, rational and straightforward and it mainly discusses two things:-

(1) The government of Pakistan and world business communities must take a note of the WAY KSE conducts business leaving behaind all business, moral and legal values and principles and small investors should be saved from the hands of 'thuggery' of the giant investors who, manipulate the market on the strength of their substantial buying and selling power. The satta baazi system which takes a stock from Rs.60.00 to Rs.160.00 in 6 weeks without the potential backing of profitability of the company, liquidation position, dividends, balance sheet, owing company debts etcetera should be the main criteria of business as generally practiced in the stock markets around the world (a small hanky-panky is negligible).

(2) Many of the writers have said:

(a) Why not small investors watch their own ass?
(b) The KSE base was 7500 and the investors should have stepped out when the market was climbing beyond 7500.
(c) Some said, these are the months when market substantially fluctuates.
(d) The drop off of 3300 points were simply 'correction'.
(e) Any other reason.

Let me remind all those critics that under no circumstance you can blame small investors that, why they didn't watch their own ass? Why they invest in the stock business? Why they did not pull their money when the market was climbing etcetera.

This is the same stupid reason that you tell one car-hit pedestrian that, "why was he walking on the walk-way and leave the car driver go terming that was not driver's fault".

If that is the case, than, we should let Enron, Schon Group, Dada Bhai and that Punjab Financial group go free who defrauded and swindled hundreds and thousands of people in Punjab and other cities of Pakistan(Enron in USA) by Billions of Rupees through over 300 financial banks in Punjab during the days of Nawaz Shareef. Cheating, temptation, swindling, defrauding, also fall under the category of criminal offense. Those thugs and conmen who tempt and swindle small investors are also liable to be apprehended.

Besides all these facts, I have repeatedly said, that the THUG-MAFIA of KSE does this DROP & RISE with an strategic planning and drag down the market intermittently to buy-back the stocks on lower prices to pocket billions of Rupees overnight.

When everyday market was losing 300-400 points, the nervous and confused small investors were selling their stocks in panic as at the end of the day, they had to defray their BADLA (COT) accounts by paying lost money to their brokerage companies through hard-cash, which in fact they did not have and thus they were forced to sell their stocks no matter what. This way the NBP came down from Rs.162.00 to Rs.113.00; OGDC dropped from Rs.192.00 to Rs.123.00 and all other stocks ATRL, POL, PSO, PPL, NML, BOP, ACBL, MCB, FFC, ENGRO etcetera etcetera were down from Rs.50.00 to Rs. 80.00 plus.

As I predicted earlier, the market picked up again on Tuesday, March 29, 2005 and index was up by 144 points. PSO, POL, BOP, PPL, ATRL and likewise were up by Rs.11.00, Rs.15.00, Rs.27.00 and so on in one day. No matter how you slice it, the THUGS make money by manipulation and swindling.

I can tell you, market will go up for next 10-15 days adding 1000-1500 points (God forbid if some political mishap does not warrant). Then there will be slight drop which they will call 'correction' or 'it was expected' (that's what paid corrupt journalists of these THUGS write in their papers).

The people have to see, what action is taken by the State Bank of Pakistan, SECP and other agencies for the piracy poor investors went through losing Billions of Rupees or just government will once again make jackets out of the skins of poor investors once again!

SHAFIQ KHAN
CANADA
shafiqkhan@rogers.com
March 29, 2005