CURRENT HAPPENINGS IN PAKISTAN STOCK MARKET ANALYSIS

Stock market is considered as highly volatile market. It response to the every market change immediately thus It is highly sensitive. As per the recent statistic the price to earnings ratio is approximately 5. Along with this dividend yield is approximately 7% to 8%.  In addition to it, corporate earning hits the highest record of the history.  Large Scale Manufacturing stands at 3.9%. So, overall the market is performing very well.

But at present the trading volume of Pakistan stock market is very low. The benchmark KSE 100 index is hovering at around 45,000. There are only 250,000 investors currently trading in stock market out of  220,000,000. The low trading volume in stock market is mainly due to rising interest rate in Pakistan and political uncertainty. Majority of the investors are diverted towards bond market these days. It is due to the safe return of around 10%. 

However, there are high chances of growth in the near future due to better corporate earnings. The stock market of Pakistan will definitely flourish after the settlement of IMF program and political stability. At present commodity prices internationally have peaked out and hopefully it will stabilize in the near future. And the pressure on rupees will be eased after a billion dollar loan from IMF.

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