Pakistan Stock Exchange makes historic record

[LA se Karachi]

you never know when the fall will come... the probablity increases with every record.

True. But for now, things seem to be going very well. Eventually things will stabilize of course. But probably not this year.

PSE is the 5th best performing stock market in the world in 2016. I suspect that will continue until at least the end of the year.

 

[X-2.]

^ But that's exactly my point. Every week, there seems to be a new record high.

It will b down on darna tym so after darna etc u can invest and get good in return

 

[majid mehmood]

guys one of the main factor (which accounts for 90% for this success) is low oil price

 

[LA se Karachi]

guys one of the main factor (which accounts for 90% for this success) is low oil price

While it is a factor, it's certainly not "90%". That makes little sense. Other countries are benefiting from lower oil prices. Despite this, however, the PSE is one of the best performing stock markets in the world this year.

 

[RiazHaq]

Won't that confuse traders who trade internationally?

The key index is still called KSE-100. That's wha traders look at.

 

[LA se Karachi]

The key index is still called KSE-100. That's wha traders look at.

Is it? I thought they renamed in the "PSE"?

 

[SBD-3]

guys one of the main factor (which accounts for 90% for this success) is low oil price

Low oil price means the lower valuations of E&Ps and OMCs has rather been dragging than pushing the Index (since these are index heavyweights alongside big 5 banks).
Cements have been booming, Autos have been booming, Pharmaceuticals, Steel has been booming, Chemicals have been booming, energy has been booming. Almost all major cement players announcing expansions. New firms entering consumers. New energy projects being started and the sick auto production lines being revitalized. The corporate sentiment is now starting to enter an expansion mode as they see the suitable growth rate continuing in the future. Most of the strength in KSE is coming from the business dependent upon internal growth rather than external (e.g. Dismal textiles, OE&P etc)

 

[Archie]

Can someone explain,what is a point in Stock exchange?

Well in financial terms
1 point = 1 Rupee x Stock weightage on the exchange

For eg
India 's Benchmark Stock Exchange
The BSE 30 has a value of 28000 points

If u buy 1 share each of all the companies listed on Stock exchange , you will get a Figure higher than The value of the exchange ie more than 28000 in case of BSE

Reliance Industries has a 10% weightage on the BSE 30
That means that reliance's share price of Rs 1030 is equal to over 2800 points on the BSE 30
While Maruti Suzuki which has a Share price of Rs 4600 and a weightage of 3% on BsE , So Maruti's one share is equal to 840 points on BSE 30

It doesn't matter how many points BSE or PSE have
What matters is the Market capitalisation and the Price Earning Ratio
A Price Earning ratio of 8:1 to 20:1 is considered attractive
While a PE ratio above 35:1 is considered high risk
At one time Shanghai Stock Exchange had a PE ratio of 80:1
Which was dangerous and eventually led to 6 Trillion USD loss to shareholders when the market corrected
I believe PSE 's PE ratio is closer to 8:1 , which explains the recent rally

 

[pak-marine]

^ But that's exactly my point. Every week, there seems to be a new record high.

Be careful ghubara phat jata hai

 

[Kambojaric]

merging was right decision
problem is even though our stock exchange is doing good, its still not translating in more direct investment

Investor confidence takes years to build and hours to disappear. Pakistan has been in the news for all the wrong reasons the past 10-15 years. It will definitely take some time before foreign investors (non Chinese ones) consider Pakistan a safe bet. However political stability and better security are a must for that. We are on the right track (operation zarb e azb plus governments completing full terms in office) but still have a long way to go.