11,665 - KSE-100 index loses 10% in a week !
June 22, 2008
The Karachi Stock market finished the week on Friday closing at 11,655, its lowest close since April 6th 2007. The market got rammed downwards by nearly 10%, losing 1286 points in a week. In the future it could be referred to as the " June 2008 crisis " and it has certainly cut off most people’s balls this week (and hopefully will not jam them down their throats in the coming week with a further slide !). While a lack of support left one scratching their heads on Friday, if there is no pullback 2moro, we could see a further plunge to 11,100 -10,800 (hopefully not). One must bear in mind that the rest of the world’s markets are getting fucked as well, so there could be more foreign selling. Keep applying the Vaseline !
The excerpt from the following article will not provide any solace for the small investor, but perhaps he or she will finally take heed about not investing in the KSE-100 index…
“The reason that the stock market gives fabulously higher returns over other investment avenues in the long term is because it entails higher risk,” says a stockbroker who disagrees with the deserting tactic. He thinks that the factors that basically drive the market are risk and reward; fear and greed. If the small savers have been a casualty of the bloodbath, most major market players believe they are themselves to blame.“Losses have been caused to investors who overplayed on the basis of borrowed money,” says a participant. “What else is likely to happen if a person with little or no holding power takes stocks valuing three times his purchasing power on leveraged buying,” he asks, adding: “when margin calls are made, such investors are almost always certain to come to grief”…. Dawn
Lower Caps : BOP / BAFL / NBP / AHL / PRL / NML / ENGRO
Market Low : 11,519.66 High : 12,083
Market Close : 11,665.28 – 215.67 points down
