Posted on March 07, 2014

Swayed by the dream debut of MPHC on stock market, many investors are offloading its shares to buy luxury products, ignoring the governments advise to hold share for long term.

MPHC share had surged 450 percent on listing day on February 26 showing that investors are bullish on company’s future prospects. Citizens were allocated a huge number of shares to keep it for long-term saving. Shareholders are allowed to sell some of their shares, but the government is encouraging them to keep shares as long as possible.

“Some shareholders are in hurry to sell the stockers to buy unnecessary things like car or to book tickets for foreign trips that they can do any time,” criticised a local businessman Khalid Al Suwaidi. “For sure, they are not serious to secure their future. This money we can use in future to meet our necessities and our families as well. The stocks will help solve any type of our financial problems if we come cross,” said Al Suwaidi.

If we keep 1,600 shares for long term we might gain enough money to set up a small firm or at least we can give a message to our coming generation about saving money and create a saving culture. “I do not know why the shareholders are in a hurry to sell their stocks in the Mesaieed Petrochemical, they are getting pretty good salaries and share prices are down due to huge offers for sale,” said a local investor Ahmed Al Sheeb.

Some newspapers reported that a whopping 629,000 shares of Mesaieed are in the market for sale. Demands for luxury items rose 10 percent in the local market like buying new cars and booking tickets for foreign trips just after the share trading of Mesaieed Petrochemical began, said businesswoman Dr Nura Al Madadi. Sale of the shares continues despite decline of share prices. We should learn from westerners how to save money to get rid of consumerism behaviour, she added.

source: The Peninsula