Karachi-based Saleem Altaf, who retired from Habib Bank four years ago, was starry-eyed when he saw the Karachi Stock Exchange index's daily leaps in the first half of March.
He pulled out 75 per cent of his provident fund and savings and bought heavily into Pakistan State Oil and Pakistan Telecommunications at their peaks.
When the market crashed, he thrust aside his vow of cutting losses if the stocks dipped 10 per cent and simply hung on, hoping for a reversal of fortunes. His greatest misfortune was panic-selling at the very bottom. The stocks have since recovered partially, but he is not one of the gainers.
'I was hoping to buy a larger flat with profit from the stock sale; now it's going to be hard to find money for my monthly maintenance,' he said. 'I have learned a valuable lesson: the stock market is not for small folks like me.'
Shamsuddin Mia, a clerk at a Karachi shipping agency, said he put all his savings into stocks he knew nothing about at the advice of his boss. 'The investment shrank to about half within a fortnight. Now, instead of having enough money for my daughter's wedding later this year, I am faced with the prospect of delaying it for a year.'
Stock exchange managing director Moin Fudda has heard these stories before. 'There was too much over-stretching and that is always bound to cause trouble,' he said.