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Sunday, September 26, 2021
KSE100 Week 38-2021: Roll the Red Carpet for Exit Strategy!
Bourse remained unpredictable and whip-saw the entire week. There is no predictable move to analyze and write any technical analysis on. There seems to be a suspicious quiet on the abnormal behavior from July to Sep currently. Reforms happen to be a long-term thought-out process done swiftly after a lot of deliberation. Pakistan bourse seems to become a playground of policymaking at the whim. Instead of a well thought out process being put forward, the slow introduction combined with piecemeal reforms takes a toll on the market every few months. On the fundamental side, the central bank has upped the interest rate by 25 basis points but that alone is not a significant impact to drive the market down. However, it does point to the future tendency of the interest rates rising to cool down inflation. This pretty much means it's time to pack up bags from the PSX.
There is no obvious explanation of the capitalization meltdown, but the massive loss does paint a picture of the game over. It's time to roll the red carpet for an exit strategy. Let us know your opinions in the comments section below.
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