Former Chairman Lahore Stock Exchange, Dr Yasir Mahmood has said that the growth shown by the share market before recent downslide was real and the KSE index could have sustained 10,000 level, but due to over speculation it did not happen. Speaking at a discussion on the recent market crisis arranged by Hamdard Thinkers Forum here on Friday, Yasir Mahmood said the sentiment in all emerging markets is volatile and Pakistan, which is also an emerging market, was not an exception.
Giving reasons for the recent heavy equity falls, he said the pace, with which the market moved upward, was very sharp and could not be sustained for a longer period. He also held speculators responsible for the existing state of affairs of the market and said that such people did not deserve any sympathy.
Yasir Mahmood also urged the government not to protect such speculating forces with public money, as they could repeat the practice of over-speculation in future.
Another ex-LSE Chairman, Group Captain Naeem A Khan (Retd) speaking on the occasion said people raised eye brows when the KSE index crossed the10,000-points as it travelled from 5,000 to there rapidly, taking only 2 or 3 corrections of 300 to 400 points.
Explaining the factors that led to steep fall, he said that the downturn started when the investors, who were unable to hold their positions, started off-loading in panic.
Former Vice Chancellor Punjab University, Dr Rafique Ahmed also spoke on the occasion
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