By Our Equities Correspondent.
DG Khan Cement announced its board meeting on September 4, 2013 at 11.00 am to announce full year results. Being the blue chip stock, investors had a firm eye on the expectations of the announcement. Most of the investors expected dividends while there were also the rumors of right shares announcement. There was also a market gossip that the DGKC will announce its expansion. The announcement of expansion was the key variable which could decide the fate of the cement players cartelization. The cement manufacturers were against any expansion as no player wants to lose the existing market share. Investors were of the view that if the DGKC doesn’t announce the expansion, the price war between the cement players could be prevented and the already cracked cement cartel can move back towards reconciliation.
The expansion announcement of DGKC was a highly price sensitive and material information which was expected by the investors in the result announcement. At last, the result was announced in which DGKC announced EPS and dividend and no right shares were announced. The investors celebrated that the DGKC didn’t announced any right shares and hence no expansion is announced but to confirm it further they waited for the official notice to be uploaded at the Karachi Stock Exchange website. The notice was uploaded and it didn’t had any price sensitive information. There was clearly NIL marked in the price sensitive information disclosure area. The investors celebrated and the price started increasing of not only DGKC but all the cement sector companies. Soon all the cement companies turned into green numbers and highly volumes were fetched by these scripts.
Soon after few minutes, the prices of the cement companies started to batter again witnessing a huge supply. There has been a hue and cry in the market that the DGKC announced expansion. Investors started to search if any fresh announcement is made but failed to find any. Referring back to the result announcement notice , they found that a fresh notice was uploaded instead of the old notice and the area of price sensitive information which was marked NIL had an information of expansion announcement. All the cement stocks were dumped again by the investors resulting in losses worth millions and billions.
The questions arises in minds and hearts of many investors that what was this all about? Was this an intentional act or mistake ? Is it a scanning error by Karachi stock exchange or by the company? Who must have benefitted from it ? Is this another act by market players to make huge profits?
This incident or act was occurred on the day when the newspapers had already flashed the news of the corruption in IT department of the Karachi stock exchange where the employees were involved in leakage of sensitive data to the influential market players. Does this indicate the act of corruption in other departments of the Karachi stock exchange.
The bottom line is the small investors are the one who lose their hard earned money from such acts or incidents and their questions, pleas and requests for investigation falls on deaf ears. The regulator Securities and Exchange Commission of Pakistan should act on such incidents and investigate the causes which result in huge losses to investors.