Pakistan Stock Exchanged Crashed: Down 1350+ Points
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Novice09
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The Accountant
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Bro, Finance Minister suerly knows better than you ...
The drop in the stock market is partially due to expected economic slow down planned by the government. Government is pushing for a decrease in government expenditure, monetary policy is tightened by increasing discount rates...
Increase in taxation is not mainly a monetary measure but a stabilization factor for example gas prices was reduced by more than half for textile whereas increased significantly for transport sector ...
Similarly, duties are mainly on luxurious consumable items ...
Government is reshaping the economy by reshaping from consumption-based growth to export and investment based growth ...
On the stock exchange front, you have no idea how they work in Pakistan... In Pakistan, we have few giants who own more than 50% of the market and use it to rob small investors there is nothing more or nothing less about the Pakistani stock exchange...
With the name of 150 top people on ECL for money laundering and planned attack on business mafia involved in tax theft, this was bound to happen ...This is a threat from big business houses to IK that if he continues the path of accountability then the business community will retaliate ...
war&peace
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Excellent analysis. Basically all the money launderer are under the lens to they are withdrawing their money and selling their shares to transfer abroad but it won't happen because eyes are already monitoring them.
VCheng
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I think the rationale here is that taxing imports will help improve the balance of payments situation by curbing domestic demand, and exports will be helped by devaluing the PKR to help make them cheaper in the global markets.
However, one must keep in mind that there is a limit to this approach since a majority of the imports have inelastic demand, and Pakistani products struggle to be competitive in the global market even at rock-bottom prices.
ni8mare
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KSE-100 Index slides 1,328 points amidst global sell-off
AFP | Dawn.comUpdated October 08, 2018
Facebook Count16
Twitter Share
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The Pakistan Stock Exchange's benchmark KSE-100 Index plummeted 1,328 points (3.39 per cent) amidst a global market sell-off as investors abandoned positions fearing macroeconomic headwinds and trade weaknesses.
World stock markets sank on economic worries over China and Italy and alongside the prospect of rising US interest rates, AFP quoted dealers as saying.
Asia and Europe also slid on the coat-tails of Wall Street, where another strong US jobs reading has further fanned expectations that the US Federal Reserve will hike rates at a quicker pace than previously thought.
The National Clearing Company of Pakistan's data showed that the sell-off in Pakistan was led by foreign investors, of which individuals were net sellers of Rs675,290 worth of shares; corporates sold a net Rs918.9m; and overseas Pakistanis sold a net Rs9m.
Among local investors, the sell-off was mainly from Mutual Funds (net sellers of Rs502m worth of shares), followed by individual investors (net sellers of Rs221m worth of shares) and brokers (net Rs114m worth of shares sold).
Local Companies, Banks and Insurance Companies were in fact big buyers, snapping up Rs829m, Rs659m and Rs210m worth of shares, respectively.
The 100 Index closed at 37,898 after sliding consistently over the day. The day's high (39,297) and low (37,769) coincided respectively with the open and close of trading.
Volumes were sharply lower, with 186 million shares in all changing hands. Of the 349 scrips active, only 37 managed a positive close, while 297 closed red and 15 remained unchanged.
The Bank of Punjab (18.4m shares traded), K-Electric (12.2m), Worldcall Telecom (10.3m), TRG Pakistan (8.1m) and Lotte Chemical (6.4m) dominated volumes.
In terms of overall volume, Commercial Banks dominated trading activity, followed by Technology & Communication scrips, Chemicals, Cement and Power Generation.
Murtaza Jafar of Elixir Securities wrote: "Panic selling was witnessed in retail names on reported margin selling while index heavy MSCI scripts also came under renewed selling pressure on reported self-off from FII [Foreign Institutional Investors] and potential redemption from Mutual Funds."
"During the day, the Pakistani Rupee also weakened by another 1.5% in the Open (Kerb) Market to Rs129.5 against the greenback [dollar]," he added.
"Conclusion of the Financial Action Task Force review meeting and clarity on funding of depleting foreign exchange reserves are likely to restore investor confidence as the Government of Pakistan has so far not announced any concrete measures or policy direction to address the balance of payment crisis," he observed.
Global sell-off
Among international markets, Shanghai spearheaded the retreat, diving almost 4pc on fears as mainland investors returned from a week-long break — and despite another cut in the amount of cash the country's commercial banks must keep in reserve.
In Europe, Milan stocks tumbled 2.3pc on concerns that Italy could face a sovereign debt crisis after its populist government passed a purse-busting budget last week to the chagrin of the EU.
Elsewhere, London stocks lost 0.6pc, while both Frankfurt and Paris each lost 0.9pc in value while Tokyo was shut.
'All-round sell-off'
“It's an all-round sell-off: the prospect of high interest rates from the [US] Fed could not come at a worse time, given the slowdown in the Chinese economy and other emerging economies as well as the Italian debt and fiscal crisis,” CMC Markets analyst David Madden told AFP.
The People's Bank of China had lowered the required reserve ratio (RRR) as it looks to shore up the economy after a series of weak data, amid Bejing's trade war with Washington.
China's central bank says however that the move will pump more than $100 billion into financial markets.
“The fact the authorities are cutting the amount of capital banks need to hold in relation to their loan book suggests they are worried about the economy,” noted Madden.
“It gives off the impression the country is gearing up for a protracted trade spat.” European investors also remain preoccupied with worries that Italy could dive headlong into a full-blown debt crisis.
Rome had sparked disquiet last week by unveiling a budget that set the public deficit at around 2.4pc of gross domestic product (GDP) for the next three years, earning a rebuke from Brussels and forcing it to row back slightly.
Italy row reignites
“Matters were made worse on Monday by the reigniting of the conflict between Italy and the EU over the former's budget deficit,” said Spreadex analyst Connor Campbell.
“The European Commission had written to Italian economy minister Giovanni Tria outlining its 'serious' concerns about the budget, only for Deputy Prime Minister Luigi Di Maio to respond that the government will 'not retreat' over its spending plans.
“This resulted in another round of heavy losses in Europe.” Back in Asia, Shanghai was also hit after a week in which China was accused of using microchips in computer equipment sold in the US as part of a drive to steal technology secrets.
Wall Street's three main indices tanked despite news that unemployment had hit a 49-year low and wages saw healthy gains.
The report, which followed a slew of strong indicators on the world's top economy, saw yields on benchmark 10-year Treasuries rise for the third straight day, hitting a fresh seven-year high with the Fed expected to stick to its rate hike drive.
Analysts said the sudden surge in interest rates had deepened worries about higher inflation and an uptick in costs for loans and mortgages.
Oil prices meanwhile fell sharply after the crown prince of major producer Saudi Arabia said it could access spare capacity to fill in for any shortages from Iran when US sanctions are imposed on the country next month.
AFP | Dawn.comUpdated October 08, 2018
Facebook Count16
Twitter Share
18
The Pakistan Stock Exchange's benchmark KSE-100 Index plummeted 1,328 points (3.39 per cent) amidst a global market sell-off as investors abandoned positions fearing macroeconomic headwinds and trade weaknesses.
World stock markets sank on economic worries over China and Italy and alongside the prospect of rising US interest rates, AFP quoted dealers as saying.
Asia and Europe also slid on the coat-tails of Wall Street, where another strong US jobs reading has further fanned expectations that the US Federal Reserve will hike rates at a quicker pace than previously thought.
The National Clearing Company of Pakistan's data showed that the sell-off in Pakistan was led by foreign investors, of which individuals were net sellers of Rs675,290 worth of shares; corporates sold a net Rs918.9m; and overseas Pakistanis sold a net Rs9m.
Among local investors, the sell-off was mainly from Mutual Funds (net sellers of Rs502m worth of shares), followed by individual investors (net sellers of Rs221m worth of shares) and brokers (net Rs114m worth of shares sold).
Local Companies, Banks and Insurance Companies were in fact big buyers, snapping up Rs829m, Rs659m and Rs210m worth of shares, respectively.
The 100 Index closed at 37,898 after sliding consistently over the day. The day's high (39,297) and low (37,769) coincided respectively with the open and close of trading.
Volumes were sharply lower, with 186 million shares in all changing hands. Of the 349 scrips active, only 37 managed a positive close, while 297 closed red and 15 remained unchanged.
The Bank of Punjab (18.4m shares traded), K-Electric (12.2m), Worldcall Telecom (10.3m), TRG Pakistan (8.1m) and Lotte Chemical (6.4m) dominated volumes.
In terms of overall volume, Commercial Banks dominated trading activity, followed by Technology & Communication scrips, Chemicals, Cement and Power Generation.
Murtaza Jafar of Elixir Securities wrote: "Panic selling was witnessed in retail names on reported margin selling while index heavy MSCI scripts also came under renewed selling pressure on reported self-off from FII [Foreign Institutional Investors] and potential redemption from Mutual Funds."
"During the day, the Pakistani Rupee also weakened by another 1.5% in the Open (Kerb) Market to Rs129.5 against the greenback [dollar]," he added.
"Conclusion of the Financial Action Task Force review meeting and clarity on funding of depleting foreign exchange reserves are likely to restore investor confidence as the Government of Pakistan has so far not announced any concrete measures or policy direction to address the balance of payment crisis," he observed.
Global sell-off
Among international markets, Shanghai spearheaded the retreat, diving almost 4pc on fears as mainland investors returned from a week-long break — and despite another cut in the amount of cash the country's commercial banks must keep in reserve.
In Europe, Milan stocks tumbled 2.3pc on concerns that Italy could face a sovereign debt crisis after its populist government passed a purse-busting budget last week to the chagrin of the EU.
Elsewhere, London stocks lost 0.6pc, while both Frankfurt and Paris each lost 0.9pc in value while Tokyo was shut.
'All-round sell-off'
“It's an all-round sell-off: the prospect of high interest rates from the [US] Fed could not come at a worse time, given the slowdown in the Chinese economy and other emerging economies as well as the Italian debt and fiscal crisis,” CMC Markets analyst David Madden told AFP.
The People's Bank of China had lowered the required reserve ratio (RRR) as it looks to shore up the economy after a series of weak data, amid Bejing's trade war with Washington.
China's central bank says however that the move will pump more than $100 billion into financial markets.
“The fact the authorities are cutting the amount of capital banks need to hold in relation to their loan book suggests they are worried about the economy,” noted Madden.
“It gives off the impression the country is gearing up for a protracted trade spat.” European investors also remain preoccupied with worries that Italy could dive headlong into a full-blown debt crisis.
Rome had sparked disquiet last week by unveiling a budget that set the public deficit at around 2.4pc of gross domestic product (GDP) for the next three years, earning a rebuke from Brussels and forcing it to row back slightly.
Italy row reignites
“Matters were made worse on Monday by the reigniting of the conflict between Italy and the EU over the former's budget deficit,” said Spreadex analyst Connor Campbell.
“The European Commission had written to Italian economy minister Giovanni Tria outlining its 'serious' concerns about the budget, only for Deputy Prime Minister Luigi Di Maio to respond that the government will 'not retreat' over its spending plans.
“This resulted in another round of heavy losses in Europe.” Back in Asia, Shanghai was also hit after a week in which China was accused of using microchips in computer equipment sold in the US as part of a drive to steal technology secrets.
Wall Street's three main indices tanked despite news that unemployment had hit a 49-year low and wages saw healthy gains.
The report, which followed a slew of strong indicators on the world's top economy, saw yields on benchmark 10-year Treasuries rise for the third straight day, hitting a fresh seven-year high with the Fed expected to stick to its rate hike drive.
Analysts said the sudden surge in interest rates had deepened worries about higher inflation and an uptick in costs for loans and mortgages.
Oil prices meanwhile fell sharply after the crown prince of major producer Saudi Arabia said it could access spare capacity to fill in for any shortages from Iran when US sanctions are imposed on the country next month.
pzfz
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You're not the economist you think deem yourself to be. Misconstruing someone else and then begging for support from another is the way of a low-life.
AZADPAKISTAN2009
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Issue resolved .....
FULL RECOVERY
FULL RECOVERY
You do realise it is the same news right? It has recovered 606 points, not double of that.
Cherokee
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hahahahaha . Please let him be . He trying !!.
Śakra
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pzfz
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so, a tomato techie. Pak did have a shortage of tomatoes...
pzfz
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in doing so, he also gamed the indian market on onions. comes out on top again. why do techies like taking Ls so much?
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