Thursday 13 December 2012

Karachi Stock Exchange – An Overview




A stock exchange considers as the mirror of economy and one of the major indicator of any country’s economical growth. The economy of Pakistan is struggling with many challenges from several years including Law & Order situation mainly because of the war against terrorism but on the same time we see a record growth in Stock Markets of Pakistan which not only shows but proves the potential of national economy.  One can consider that if the index of Karachi Stock Exchange can hit an ever record high 16,900 point in the current scenario so what this market can do in an ideal situation of peace and consistent policies. 

If we see the trends so we find aggressive progress in different sectors like Cement, Textile, Foods, Chemical, Bank, Oil & Energy and Pharmaceuticals. The current index is at 16, 800 plus and up coming Monetary Policy can give the market more strength if rate of interest cuts down up to 100 basis points. This will directly make an impact on Cement and Textile Industry and their share values will boost in no time.  Allocation of dedicated Gas for fertilizer sector has made a positive impact and fertilizer companies are enjoying this. 
 
Due to end of year market can come under pressure of Profit Taking but it will be correction only which is expected not any crash. The investor’s behavior in that scenario should be positive and calm, rely on yours fund manager and let him handle with this confidently.
Future forecast for Karachi Stock Exchange is very positive and bright, as 2013 is election year so the Government of Pakistan is trying to do all in favor of business community.  The Business community is as well looking positive for next year’s prospects.  
 

 

No comments:

Post a Comment