"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.”
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
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.
Pakistani Investors Stone Exchange as Stocks Plunge
Bloomberg, July 17 2008
Furious investors trash Karachi stock exchange
Farhan Bokhari in Islamabad
Published: July 18 2008 03:00 | Last updated: July 18 2008 03:00
Pakistani investors attack bourses after share collapse
The Times, July 18, 2008
Pakistani Bear Market Has Investors Raging in the Streets
NYT July 18, 2008