Pakistan Stock market was down 5% yesterday. But that's not the problem. It is the movement of last one month that's quite troubling for investors in Pakistan stock market. This is how Pakistan ETF looks on the daily chart -
And at a time when Global stock market is hitting all time high - Pakistan stock market seems to be moving in opposite direction. Here's how it looks on the weekly chart - The market is now down Year to Date
1. Pakistan economy and politics is in chaos. Pakistan’s currency rupee plunged the most in nine years, after it's central bank devalued the currency recently.
2. It's also paying the price of unneccessary euphoria. Pakistan stock market was up 46% in 2016, some says thanks to Pakistan’s reclassification into an MSCI Emerging market, from a Frontier Market. It seems people bought thinking entry in index will result in more buying
The fundamentals now seems to be catching up and people waking up to crude reality. Do let me know how you found the story.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers