Pakistan Stock Exchange crossed the barrier of 50,000 points during intra-day trading yesterday; therefore, creating a history to reach as many points ever. However, the record-breaking achievement has raised the eyebrows of Chairman Securities and Exchange Commission of Pakistan (SECP), Zafar Hijazi as he has warned all the investors to be wary of entering into the ‘Rat Race’ of investing their funds freely in the stock market.
While speaking to the media at his office, Zafar Hijazi stated that SECP is not too thrilled to notice the massive upsurge in the stock market. Instead, the chairman is having some concerns about the protection of investors who are currently tempted to invest big in the market.
Mr. Zafar Hijazi added:
“Usually people rush towards the market with investments after any such mark is achieved but this leads to failure as they end up with wrong people”
Talking about the possible market crash, he dismissed any such chance. He stated that the Systematic Risk Department of SECP constantly monitors the marketing activities and surveillance. However, he was quite firm that some individuals might face some heavy losses due to misguidance.
Guidelines issued for Investors
While cautioning individual investors from massive losses, the SECP has also dispensed a set of rules for them. The guidelines actually request the aspiring investors not to trust brokers or agents blindly. Besides, they are also advised to trade through their own CDC account. In addition, the SECP has also urged the investors to consult only those brokers who are registered.
Commenting on the overall scenario, Mr. Zafar said:
“There is an emerging trend that some people follow the advice on social media but this could be misleading. After losing money, they all start blaming the SECP for failing to recover their investment”
The chairman was rather quick on clarifying that the sudden upsurge in the market is not a mere bubble and that it is going to stay. He added:
“It is the result of our efforts for the last two years that Mutual Funds are strong and stable to support market growth. Previously, foreign buyers used to guide the market but now, despite a selling spree, the market is growing”
Do you think Stock Market will continue to rise in the upcoming days or will the bubble just explode?