A PROFOUND change that has taken place in our stock market is the tremendous coverage of stock quotes and market issues by the new television channels. With passage of time, more channels are likely to be launched, further increasing the air time given to stock market. Ironically, it is the same stock market that used to be confined to just about a minute’s slot in the 9’o clock news a few years ago.

Arguably, the degree of coverage given to our stock market by the new channels is far in excess of its significance in the country’s economy. Perhaps, this coverage of stock market is a result of imitation of some international channels operating in developed economies where the stock market plays an important economic role.

However, this enhanced coverage by the powerful electronic media has brought a new wave of transparency and accountability to our stock market that is changing the way how it is run.

The new channels are covering stock market through a variety of programmes but perhaps the most influential programmes in shaping public opinion are the talk shows. Most of these talk shows discuss performance of overall market, prices and turnover of different companies and sectors, and current issues.

Their overall viewing is unlikely to be significant but these are believed to be watched with interest in stock market circles. They provide an forum for bringing out the different perspectives on stock market issues. Some of them are aired five days a week, so they manage to capture issues as and when they arise.

Thanks to these talk shows, the market issues which were previously discussed and decided upon behind closed doors are now being extensively debated live on television. All market participants are having to adjust to this new reality of talk shows.

The decision makers are feeling the pressure to communicate their point of view on these talk shows, fearing that otherwise the opposite views may dominate. Gradually, these talk shows are increasing awareness about the challenges being faced by our market and the overall quality of programmes is showing signs of improvement. However, there are at least three areas in which they can do much better.

First, most of these talk shows suffer from a lack of balance in their guest panels. Normally, stock market participants include individual investors, institutional investors, issuers of securities, intermediaries, research analysts, management of exchanges, regulators and journalists who cover the market.

However, guest panels on these talk shows usually exclude individual investors who represent the largest segment in the stock market and whose participation is essential for making these shows relevant for the masses. They also ignore management personnel of listed companies, management personnel of exchanges, regulators, journalists, Lahore Stock Exchange and Islamabad Stock Exchange.

Due to this consistent lack of balance in their guest panels, these shows cannot claim to bring out the views of all stakeholders. At times some of them have been used by a small set of market intermediaries for carrying out a media trial of regulators, which is quite unfortunate.

Second, these talk shows overly focus on a few issues at the cost of other more important issues. There are many challenges facing our stock market, such as lack of capital formation and an extremely narrow investor base, but the discussions are utterly dominated by issues like Badla, margin financing, Continuous Funding System etc. At times, the ideas discussed in these shows are repeated to the extent that they start looking like a repeat telecast.

Third, the quality of discussions is not very professional. Often the members of guest panel are ill prepared to comment on technical issues but still go on talking about them at length making many mistakes in the process. Some frequently claim that what they are suggesting is an established international practice without naming a single stock exchange in which that practice is established. They also do not disclose the conflict of interest to which their views are subject.

Market intermediaries directly or indirectly advise investors to buy a particular stock but never say that they may have proprietary positions in that particular stock and hence their views cannot be termed objective. Some of them use political phrases to sell their point of view as “national interest” and dub the opposite view as “economic terrorism.” Some anchors consume a lot of air time themselves, reading out unnecessary details or giving vent to their own feelings.

Apart from improving their quality in these three areas, the talk shows could also use a number of other means to offer value to viewers such as inviting international experts.

Given the historical similarities between the stock markets of India and Pakistan, these programmes could include some experts from Indian stock market on telephone on an ongoing basis. This would make the programmes more interesting and informative.

They could also invite retired market practitioners and regulators who could be in a better position to share their insights in a frank manner. Instead of holding every show in the studio, some shows could be held in the premises of stock exchanges to gather the views of the “small investors.”

In the fast paced and largely informal work environment of the new channels, the quality and impact of these talk shows ultimately hinges on the quality of their anchors. A good anchor can help select balanced guest panels, choose the right topics and steer the discussion in a way that would bring out the best from his programme.

The anchors are performing a very important job. Their pay cheques may not be enviable, at least at this stage in the life cycle of these talk shows, but their impact on the market is highly significant.

Fortunately, most of the anchors are young and seem enthusiastic about their work. Given a chance, they are capable of overcoming the deficiencies in their programmes and there is no reason why these anchors should not be given the opportunities for self development that are available to many other professionals in our stock market.

Ideally, the channels should invest in their anchors just as modern companies invest in their managers. Seasoned anchors, who conduct prime time shows for these channels, could be asked to give their younger colleagues guidance and advice.

The channels should also consider sponsoring stock market courses for their anchors in Pakistan as well as abroad to deepen their understanding of stock market issues and international practices. Where the channels are unwilling to make the necessary investment in their anchors, the anchors should invest in themselves, as much as they can. After all, anchors are the biggest stakeholders in their programmes. A successful programme is likely to mean a successful career and vice versa.

Stock market needs a talk show that would bring out the views of all stakeholders, particularly of individual investors, on all core issues in a professional manner. Given the competition that is taking place in the electronic media these days, let’s hope that the show would not be long in coming.