MM News
Sunday 28th May 2023 / 8 Zulkaedah 1444

The PSX story

The Pakistan Stock Market (PSX) was at its peak in 2017. In that year, its benchmark index crossed 52,000-point barrier. However, today’s share – which is at its peak – could not reach the place in 2017 where it is today. Today, the prices of these shares are skyrocketing, but the question is why the prices could not reach the peak in 2017.

Here the question arises as to whether there was any foul play or whether these shares showed such a significant performance on their balance sheet due to which those shares rose 1500%. With such performance, the company should give bonus or profit but it is seen that these shares have never given bonus before and there is no possibility till today.

If you take a look at the shares that have skyrocketed during the current regime, the first share comes to forefront is Telecards. Its prices have increased from Rs2.60 to Rs25.10 in the last 52 weeks. But this share did not give any bonus or profit separately and it is seen that its free float is 96.12%. That is, the ownership of its shares has been given to the majority of the people.

Now, we should keep in mind that the people have bought the share at Rs25 and if the prices dropped to Rs2 again then who will be responsible for it. The second most significant increase in share price is TRG, which owns 99.60 free floats. That means, its ownership also belongs to the people.

Interestingly, in the last 52 weeks it went from Rs 75 to Rs 186 and today it dropped to Rs 75. If you look at its history, a few years ago it was trading at Rs20. The question here is who is responsible for the fluctuation of this share’s price? There are many similar stocks which have been increasing in the share market from 100 to 1500% since 2018. But no company gave profit or bonus but people still bought these shares.

Different stories and justifications were being given to the people due to which the people kept investing in these shares without thinking. It is incomprehensible why institutions and stock markets could not sustain their achievements. Because these are the same shares that have never successfully reached such heights before 2018 as seen from 2018 to 2022.

The market has come down from 52,000 to 45,000 today. The question here is whether there have been any scams in the market since 2018 or by playing a game with the emotions of the people, those shares were brought which in fact have very little status. Were the big players of the stock market showing the government through these shares or were they making their own profits?

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