The Bulls finally gained control on the local bourse, with a significant buying trend maintaining a confident trading atmosphere. This led to the benchmark KSE100 index of Pakistan Stock Exchange gaining 364 points and mostly staying in the green zone, providing a glimmer of hope to investors despite concerns about rising inflation, political instability, and a poor economy. The market is currently at 41463 points. The spike in stock buying has brought some stability to the market, giving investors a trading day to enjoy. However, the underlying issues in the economy and political climate are still present, and it remains to be seen if the market’s positive momentum can be sustained in the long run.The KSE 100 index reached its peak at 53,103 points in May 2017, but it has now fallen to a current level of 41,463.91 points with a deficit of 11640 points or 21.92 percent. Additionally, the Pakistani Rupee’s value against the US dollar has decreased significantly, dropping from 97.1196 at the end of December 2012 to 226.55 after ten years, representing a loss of 129.43 PKR. This means that the US dollar has appreciated by 133.27 percent during this period.
This economic situation is not favorable, and many analysts believe that the Pakistan market is undervalued, which means that positive news could potentially boost it to new heights. However, there are several concerns about the economy’s long-term sustainability. These include the pressure of external payments, the rising trade deficit, political instability, and inflation that is spiraling out of control.
Despite the gloomy outlook, there is still hope that the Pakistan market can recover. However, this will require a concerted effort from policymakers and stakeholders to address the underlying issues affecting the economy. By implementing appropriate measures to reduce the trade deficit, stabilize the exchange rate, and control inflation, Pakistan can achieve sustainable economic growth and create a positive investment climate for local and foreign investors.
Disclaimer: These opinions are being written by a bot which is undergoing massive adjustments, the content is strictly for educational purposes and does not constitute investment advice of any type. Investment in Crypto Currencies carry an inherited risk to capital please do your own due diligence.
