Bad time to invest in stocks

The Karachi stock exchange is known to be one of the most volatile stock markets around the world. And last week’s correction has been a proof to that. This time though, the recovery resulted not because of speculation but because of the global credit squeeze after defaults in the subprime sector in the US.

In July this year, the KSE 100-index reached a record level of over 14000 but currently hovers around the 12,700 mark as foreign investors pull out money from oil and bank sectors to improve their liquidity positions. As these foreign institutional investments form a major chunk of the stock market, their withdrawal means the stocks are going to fall further.

12 Comments so far

  1. anon_again (unregistered) on August 18th, 2007 @ 11:42 pm

    the mkt lacks depth … hard to believe that the subprime blowout would impact KSE


  2. Kashif (unregistered) on August 19th, 2007 @ 12:50 am

    This is a global issue, stocks going down, interest rates rising, US investors withdrawing funds globally to invest at home, property prices coming down etc. Talks of recession are there and this is going to be just like pre-2001 when 09/11 was engineered to give a push to the rapidly declining US economy.

    By the way, if KSE goes down under 1000 points it would be ideal to invest in blue chips / long term investments.


  3. Obi Wan Kenobi (unregistered) on August 19th, 2007 @ 12:57 am

    I am praying that NYSE just crashes so that I could buy some stocks cheap :-). I will also invest in KSE if it goes around 10K.


  4. cwq (unregistered) on August 19th, 2007 @ 2:15 am

    The index seems to be following the Dow Jones exactly — the Dow Jones was also briefly over 14000 but is now in the 12000’s


  5. Guiding God (unregistered) on August 19th, 2007 @ 3:01 am

    I’m a technical strategist. Allah ka karam, avoided ’05 & ’06 market falls because of technical reading. Here’s the lowdown, if i can be of any help. If investing for medium to long term wait for mkt to dip below 11500. Invest in large cap oil, comm. banking & financial svcs sector between 10755 – 11495. For traders, PLAY 1: short fundamentally leveraged companies between 13350 – 13550, cut short trades BEFORE mkt dips below 12050. Rebound strongest for both lrg cap cements. PLAY 2: Short again around 12900 to buy across board around 10880 level for heavy rebound.


  6. Guiding God (unregistered) on August 19th, 2007 @ 3:04 am

    I’m a technical strategist. Allah ka karam, avoided ’05 & ’06 market falls because of technical reading. Here’s the lowdown, if i can be of any help. If investing for medium to long term wait for mkt to dip below 11500. Invest in large cap oil, comm. banking & financial svcs sector between 10755 – 11495. For traders, PLAY 1: short fundamentally leveraged companies between 13350 – 13550, cut short trades BEFORE mkt dips below 12050. Rebound strongest for both lrg cap cements. PLAY 2: Short again around 12900 to buy across board around 10880 level for heavy rebound.


  7. Imran (unregistered) on August 19th, 2007 @ 4:55 pm

    Thankyou Guiding God. We are unworthy :)


  8. Kashif (unregistered) on August 19th, 2007 @ 5:45 pm

    Property prices going to fall soon. Keep an eye on your fav areas as you are going to get good deals soon.


  9. Straight Talker (unregistered) on August 19th, 2007 @ 9:26 pm

    Pak.’s GDP is inflated..
    KSE index is “highly” inflated..
    Property prices are of out of reach for 99% population..
    Inflation rate is high compared to other neighboring countries..

    Tips:
    1. Stay away from any kind of investemtn in Pakistan..

    2. Bring your operating expenses down from household to business..

    3. In case you are making good meoney, save as much as you can..

    4. Buy Canadian dollars or Euro.. Stay away from US dollar..

    The bubble is going to burst as foreign investors will soon lose their interest in Pakistan.


  10. Ahmed (unregistered) on August 19th, 2007 @ 11:23 pm

    This is an excellent time to initiate a new position in your stocks! This correction is happening all over the world and we have already hit the bottom. BUY BUY BUY!


  11. Ahmed (unregistered) on August 19th, 2007 @ 11:23 pm

    This is an excellent time to initiate a new position in your stocks! This correction is happening all over the world and we have already hit the bottom. BUY BUY BUY!


  12. Straight Talker (unregistered) on August 20th, 2007 @ 2:14 am

    Correction needed!
    SELL, SELL, SELL & say BYE, BYE, BYE to KSE.



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