14,077 - 2007 ends in carnage.
December 31, 2007
As expected, the KSE-100 index was royally buggered out of shape today, with practically all the stocks hitting their lower limits at the open. The graph shows a flatlined market with a meagre 39.3 million shares traded and a fall of 694 points. Overall the Karachi Stock market is up 4037 points from its last trading day in December 2006, an increase of 40%. This would have been undoubtedly higher has it not been for the untimely assasination of Benazir. While there was talk of an 18k index by the end of Dec.2008, a few days ago, perceptions have momentarily changed.
Analysts predict another 5-10% fall from here in the coming week, which could get worse if there is a longer delay in the election process. There will be some support in the markets, once the animals settle down and stop burning and pillaging, and when a clearer picture of the political process emerges. This market has survived and flourished without Benazir and Nawaz in the last 8 years and will survive and flourish again. For the moment, dust the cobwebs off the Vaseline jar and stock up !!
News : Here is an excerpt from William Dalrymple’s recent article in the Guardian… "The educated middle class is in Pakistan still largely excluded from the political process. As a result, in many of the more backward parts of Pakistan, the feudal landowner expects his people to vote for his chosen candidate. As writer Ahmed Rashid put it: ‘In some constituencies, if the feudals put up their dog as a candidate, that dog would get elected with 99 per cent of the vote."
Is democracy really the answer to our problems?
Lower Caps : Barring FFC ,nearly every 1st and 2nd tier stock !!
Market Low : 14,061.53 Market High : 14,0772.08
Market Close : 14,077.16 — 694.92 points down !!
