KSE Index takes flight

So maybe I was wrong when I said there was no activity in Karachi today except for all the hue and cry on BB’s arrival.

On the financial front, the KSE Index crossed the 14,700 mark to close at 14,755 points today. Given that foreign institutions form a major chunk of the investors in the KSE, this comes as no surprise. They have reason to believe that there is ‘improvement in the political situation in the country’ now that one of their favorites has been given a proper welcome.

8 Comments so far

  1. KhiTorPit (unregistered) on October 18th, 2007 @ 10:03 pm

    Oh Yah you are right and you know what … the swiss bank will have more deposits now.
    Paki bank is inversely proportional to Swiss bank.

  2. nazia (unregistered) on October 18th, 2007 @ 10:56 pm

    Now, 16 billion dollars will be deposit to Swiss bank under BB name.

    Shame PPP shame on you

    You have a corrupt leader.

  3. KhiTorPit (unregistered) on October 18th, 2007 @ 11:46 pm

    It seems so funny to me I mean its pretty clear that these politicians are so corrupt that they have plundered millions and billions of dollars of public and still people are so stupid to give her a warm welcome? I know that ppl dont have much choice to select as all are theifs but to give that much importance even if they are paid to do so …. I cant understand. The only reason comes to my mind is illeteracy.

  4. Salman A. (unregistered) on October 19th, 2007 @ 1:27 am

    KSE = Insider Trading Center = Betting Center

    Get out of KSE and put your halal money somewhere else.

  5. Zainub (unregistered) on October 19th, 2007 @ 1:29 am

    I don’t think its as much a case of having a reason to believe the events of today forecast an “improvement” in the country’s political situation, what it does forecast, is relative stability. And the business community loves stability.

    I was listening to one of those market analysts on CNBC and he was saying the same thing too, that this gives investors and businessmen a reassurance that any political transition in the coming months would be smooth and coherent, unlike the radical changes of the past.

    This is relative stability in their eyes, and increases their confidence in the market, and that’s why you see the stocks going up.

  6. sheepoo (unregistered) on October 19th, 2007 @ 2:02 am

    BB’s convoy hit by blasts, as reported by BBC and CNN. Strangely, though, there is no mention of this on GEO?

    Can anyone confirm?

  7. sid (unregistered) on October 19th, 2007 @ 3:24 pm

    zainub: i agree that the business community loves stability but the profile of the investors at KSE does not fit that of someone from the business community.

    for me, the business community are the people who run their small and medium enterprises all over the city, be it the owner of a successful supoermarket chain or the man selling fruits on a pushcart in front of one of those supermarkets. the business community comprise of the owners of all the shops and restaurants that were forced to remain closed yesterday. not the speculator who gambles his money at the stock exchange. and for the business community that i just described you, coming of BB is in no way synonymous to stability.

  8. Wasif Ijlal (unregistered) on October 19th, 2007 @ 9:18 pm

    I would be a net seller in this market despite what the brokers tell you. Inspite all the comments by the “bhais” of KSE this is a market which has risen 70% on the back of speculation and 30% on facts and the bullishness right now is not sustainable. India, Pakistan and China are already at their all time high and it’s only a matter before these funds book their profits and move to other pre-emerging markets (case in point: Kazakhstan. Vietnam, Lagos). And if someone tells you this bullishness is because of local retailers, well what a load of crap! There is no such species called the “small investor” in the KSE market any longer anyways and the local institutions don’t have the kujons to ride the market on their own. Its takes conviction, guts and lack of conflict of interest to be a market maker and neither the majority of the corp investors nor the local institutions have that. If you are someone who has made 30%-40% on his/her portfolio in this upsurge to 14,000, the prudent way out would be to sell right now and wait till 1Q next year and then make a re-entry. In my humble experience, when the greasy haired high school drop out brokers become experts on “funda-mentals”, emerging markets dynamics and macroeconomic policies, its time to pick up the phone and scream a SELL to your brokers…

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