Failed-panic to dissuade investors By: - Articles Detail
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Failed-panic to dissuade investors  Back
Recovery of benchmark KSE-100 index on Tuesday strongly suggests that whatever happened on Monday was uncalled for and was a futile effort by some of the quarters to create panic among the investors. The market lost about 441 points or 2.46 per cent on Monday but managed to gain 350 points or 2.00 per cent on Tuesday. This clearly indicates that on Monday those having vested interest tried to create panic but didn't succeed as investors gathered the courage to consolidate their positions.
To begin with some of the media reports said 'market plunged by more than 440 points' that was totally incorrect because it was a fall of less than 2.5 per cent, which can't be termed 'nose dive'. In fact groups having vested interest made ground breaking of Iran-Pakistan gas pipeline a plea to initiate selling spree. Rumor mongers remained active the whole day passing the bug that the incident would prompt United States to impose economic sanctions on Pakistan. They instead of appreciating the move of President Asif Ali Zardari, suggested that he has offended the super power, which is enough to take some punitive action against Pakistan.
Another point negating the perception that market experienced selling pressure is also not correct. On 11th total volume was around 234.6 million as compared to 235.8 million a day ago. In fact if there was selling pressure there should have been increase in volume not a decline. This clearly suggests that investors indulged in profit taking in selective scripts rather than panic selling. On 12th volume further declined to around 211 million shares but index gained 350 points suggesting that prices of 236 scrips went up while prices of 84 shares witnessed erosion in value. 
Ever since the date for groundbreaking ceremony was announced United States has been using 'carrot and stick' policy but mostly suggesting that if Pakistan refrains from undertaking the venture it could be compensated. It may not be wrong to say that many Pakistani experts have been saying that in case United States does not treat Pakistan at par with India and supply nuclear technology for civilian use, putting pressure on Pakistan to abandon Iran-Pakistan gas pipeline project was not justified. Pakistan has to find alternate and low cost fuels to keep its power plants and industries running. Extensive load shedding of electricity and gas has plunged Pakistan's GDP growth rate to dismal 2.5 per cent.
Two of the latest decision of the incumbent government: transferring of management control of Gwadar port to China and commencement of work on Iran-Pakistan gas pipeline deserves all the appreciations. All those who refuse to term these two crucially important moves or major achievements are not being honest. One may have all the difference with PPP and its leadership but not appreciating these moves is mischievous.
Both these projects have the potential to change Pakistan's economic landscape. Not only economic activities in the country will be accelerated, prospects of increasing exports will also be improved. The added advantage will be Pakistan will attain the status of 'energy corridor' that will also help increasing income from providing transit facilities to neighboring countries, especially, Afghanistan and India.
It is imperative that commentators should focus on national priorities rather than spreading disinformation. It has been said repeatedly that Pakistan faces the worst threat from embedded enemies rather than external elements. The time has come to weed them out at the earliest.
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