Mars Securities Pvt. Ltd,
Sep 03 - 09, 2007
Mars Securities Private Limited today offers a range of diversified financial services with its prominent focus on Investment Banking and Investment Advisory services and is fast emerging as a financial services boutique. Mars Securities offered its services in Stock Broking, E-Broking, Commodity Futures Market and Domestic Arbitrage. Mr. Rehan Hadi is the CEO of the company; we took his comments on the current condition of the market.
On market capitalization his view is that the growth in GDP and the overall surge in the country's economy were reflected in the capital market. State owned enterprises such as UBL in which funds were injected in the past by the government to keep it running was sold on good price locally and even in GDR. Similarly, successful capital mobilization through equity issues is also seen. He also pointed out that the Institutions played a key role in the rising stock values. Institutions simply have to make money for keeping a handsome NAV and maintain the best possible rating and they cannot afford any pressure which would derail them as they also have to attract investors.
While defining volatility, he said that volatility is the life of any financial market but reforms in the past few years have given strength to all the market participants including the brokers. Brokers are facing all the challenges quite decently and we can hope for the best results ultimately. On political uncertainty, he confirmed that the political crisis do affect the performance of the market but in our case I think we do have a clear vision and so do the investors, whether they are local or foreign, that the political uncertainty is seen and will remain for some more time in Pakistan. So I think it is discounted by everyone before entering into the market and that's why Pakistan is still the cheapest market in the region. He thinks that there is no crisis situation due to the declining market trend, as markets do decline and incline all over the world. The important point is to manage the risk factor and there is no rocket science involved in it.
On account of the shift in policies, he reviewed that the financial markets are very sensitive in nature and behave in the same way as they are if there is a shift in policies by the security exchange every now and then. It is also evident that whenever we step forward towards maturity we have to face the circumstances. He discarded the concept of transparency in the market saying that it's an old thought that is not possible now. He explained that SECP should attract both companies and investors by showing strong step by step reforms. It should build a secure and effective liquidity system. Corporate realize that an increasing interest rate by the SBP repels them towards stock markets for there increasing capital needs. SECP should ensure that listed companies get fair attitude than the non- listed to build up their confidence.
He said that the big investors and the foreign investors are matured and know what they are doing. They mostly behave similarly and have thorough knowledge. But the small and medium investors mostly rely on tips and fail to follow any set of rules or discipline. They mostly end crying.
Lastly he gives his message by saying that the Stock markets carry the slogan "HIGH RISK HIGH GAIN" which should be very seriously understood. There is no easy money lying although it seems as if it is. Before doing any investment, an investor must simply know what he is buying or selling and why?