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Stock market
The market in which shares are issued and traded
either through exchanges or over-the-counter markets. Also known as the equity market.
or securities
going down. A "bull" market means that the market is going up. It comes from the early days of the stock market when bull and bear fights were common.
Investment in pakistan
A fast grow of asset management companies
Institutional and individual investors
KSE
It is called price setter
It is called trend setter
has been through a cycle of boom and bust but this situation was replaced at the end of 2008
CRASH PERIOD
April 2008 to Jan 2009 RECOVERY PERIOD FEB 2009 TO end of the year
the price of stock Because capitalization values are showing listed companies not those who comprise KSE 100 index
Market reversal
KSE 100 index crossed 6000 points in 2004
It was viewed that market has reached at its threshold
2004
Macroeconomics fundamentals
Impact on stock markets
Sustain growth Modest level of inflation
Price stability
Interest rate Exchange rate stability These sufficient elements for financial market growth
Macroeconomics fundamentals(cont)
Effects of the boom periods
During the boom periods economy does not perform
Macroeconomics fundamentals(cont)
Economics fundamentals were strongly enough to
support the stock market till 2007 But these fundamentals were weakened till 2010
shares price level There was a market collapse during this period
Cont
But there seems no meaningful combination between
these two crises No financial linkage between Pakistans market and European market No operational linkage between two markets
Cont
This market collapse was in US and in leading
European countries Situation was little different between European countries and US This crises mostly effected the US market
Cont
This collapse seemed like a global collapse
Banks of US became insolvent The large investment banks also became insolvent
Cont
These crises were followed by recession
There was financial insolvencies and distress in
Cont
Banking system and financial markets were effected by
the collapse
theses collapses
Cont
They lowed bank rates from 2% to 3% to 0% to 1%
All money centers and banks of US and European
Cont
Share prices began to fall in Pakistans stock market
Investors pulled out investment from market Investor became insolvent
Cont
Americans operations and suicides effected the stock
stock market of Pakistan In 2000 swift exit of FPI was a major factor in collapses of market
Cont
In FY05 it was 620 million$
In FY06 986 million$ In FY07 it was at peak 3283 million$