KSE-100 rise and risks, why we should take care, and also be bit worried.

[alis]

We have noticed a rapid rise in stocks investments in the last few weeks. I hope I am not alone to be concerned about it. In last few months a few of investment funds have been taken over by foreign investors from UK, the rise can be a indication of speculative bidding to create a bubble and this is quite dangerous for a small economy like Pakistan. A single fund manager from a foreign power can invest 3 to 4 billion dollars and create an artificial financial crisis in Pakistan but selling out all at once. I am happy that much of this is happening due to domestic investors and also due to good IK government policies but we should not forget that KSE-100 is not very reliable and can bring a huge crisis.

 

[Zaidi Qasim]

Bubble ready to burst . By the way, what good policies of Bongi created this Bubble like conditions in Stock Market ? The Capital is fleeing the country. Businesses are being chocked . The import based raw material for exports is being wither away ...... This is a disaster for the country and not a ideal state for any economy .

 

[alis]

Bubble ready to burst . By the way, what good policies of Bongi created this Bubble like conditions in Stock Market ? The Capital is fleeing the country. Businesses are being chocked . The import based raw material for exports is being wither away ...... This is a disaster for the country and not a ideal state for any economy .

Sorry But I want a proper discussion with a able person. you are are butthurt patwari or Bhutto maniac who does not care about anything but you corrupt masters. so piss off.

 

[Zaidi Qasim]

Sorry But I want a proper discussion with a able person. you are are butthurt patwari or Bhutto maniac who does not care about anything but you corrupt masters. so piss off.

I know that you want some pottyhead to give you massage with your back ache. I posed many question about the Bongi khan , go home and think about it with your inept company .

 

[Citizen X]

Bubble ready to burst . By the way, what good policies of Bongi created this Bubble like conditions in Stock Market ? The Capital is fleeing the country. Businesses are being chocked . The import based raw material for exports is being wither away ...... This is a disaster for the country and not a ideal state for any economy .

Yes definitely only master wizard Ishaq Dollar has the wisdom to rescue Pakistan's economy. That's why Pakistan was the world's richest country and fasted growing economy right up to elections 2018.

 

[Zaidi Qasim]

Yes definitely only master wizard Ishaq Dollar has the wisdom to rescue Pakistan's economy. That's why Pakistan was the world's richest country and fasted growing economy right up to elections 2018.

Yeh, the 22 years of experienced ASad Umer was tanked with many holes. Then came the rescuers Hafeez Shaikh of Zardari brought by Boots to stop the bleeding and still unable to stabilize the country and its economy. The whole MF IMF operators are running the economy... what a stupid useless BS from PTI and Bongi Khan .

 

[alis]

Bubble ready to burst . By the way, what good policies of Bongi created this Bubble like conditions in Stock Market ? The Capital is fleeing the country. Businesses are being chocked . The import based raw material for exports is being wither away ...... This is a disaster for the country and not a ideal state for any economy .

why you have to destroy every post with your bullshit. you are oozing with ignorance. what the fuck are you doing with your life? have ever had a serious thought about your life choice. honestly i am not even mocking, I feel sorry for you.

 

[Reason]

Bongi Khan's policies are no the reason why economy is doing good or bad? If you see positive economic indicators, thank Bajwa.

 

[Zaidi Qasim]

why you have to destroy every post with your bullshit. you are oozing with ignorance. what the fuck are you doing with your life? have ever had a serious thought about your life choice. honestly i am not even mocking, I feel sorry for you.

Cry Baby Cry. Take Firdous Ashiq Awan with you. She will with Faizan give you the real prospective of the BS life you are living.

 

[desan]

In isolation, the rise can be a cause for concern as a small market like ours is quite easy to manipulate.

However, considering all the good news from the four corners with improving fundamentals - this rise appears to be more organic with a sound basis.

Have recently bought significant amount of PAK (ETF for Pakistan).

 

[Pakistani First]

A lot of money has been pumped into the market in a very short time. If the market was undervalued before, now it is overvalued. Unless the market shows satisfactory results with trasparency we will see a bloodbath in the market.
Plus there is also the eminent reduction in the interest rates which cause a lot of these investors to pull their money. But if the economic policies and the performance exceed the expectations of the investors, we might not see that big of an impact.

 

[desan]

A lot of money has been pumped into the market in a very short time. If the market was undervalued before, now it is overvalued. Unless the market shows satisfactory results with trasparency we will see a bloodbath in the market.
Plus there is also the eminent reduction in the interest rates which cause a lot of these investors to pull their money. But if the economic policies and the performance exceed the expectations of the investors, we might not see that big of an impact.

Quite the contrary, lower interest rates usually result in a boost to the stock market as it stimulates private businesses and overall growth of the economy...

 

[Pakistani First]

Quite the contrary, lower interest rates usually result in a boost to the stock market as it stimulates private businesses and overall growth of the economy...

I am probably wrong here as I have limited knowledge of economics but the current boost the market is seeing is because of forign investments, which are probably here because of the high interest rates. Thats why I made that assumption.
But you are right, lower rates would allow private businesses to borrow more money with lower risk.
But I see this as a very hard balancing act where the local business was very weak, the market very bearish and outlook bad. Even with lower interest rates the local investor would have thought twice before borrowing money as the market risk would have been too high. Now the rates are high, the outlook is good, the market seems stable than before but borrowing is hard. The current enviroment favors forign investments.
Please correct me if my understanding is wrong as I would like to learn more about it. Thanks.

 

[desan]

I am probably wrong here as I have limited knowledge of economics but the current boost the market is seeing is because of forign investments, which are probably here because of the high interest rates. Thats why I made that assumption.
But you are right, lower rates would allow private businesses to borrow more money with lower risk.
But I see this as a very hard balancing act where the local business was very weak, the market very bearish and outlook bad. Even with lower interest rates the local investor would have thought twice before borrowing money as the market risk would have been too high. Now the rates are high, the outlook is good, the market seems stable than before but borrowing is hard. The current enviroment favors forign investments.
Please correct me if my understanding is wrong as I would like to learn more about it. Thanks.

Am a novice myself...

It depends where the FDI is going...

If they are buying stocks, then it's because of the prospect of a good economy.

If they are buying bonds, then it maybe because of higher interest rates.