Canada Global(Web News)Pakistan’s stock market is once again on the way to high and has reached the highest level of the last few years, but the question is whether the stock market will be able to maintain the continuation of this boom?
The stock exchange currently has a high price-to-earnings ratio, reflecting profitability, according to various estimates.
Pakistan is in the IMF program to gradually restore imports and profits and has no choice but to implement a tight monetary policy, but high interest rates may drive investors out of the stock market.
With a 21% interest rate investors will shy away from investing in the stock market and have to offer a risk free return of over 21% to attract them to the stock market.
Investors with earlier losses will wait for the stock market to stabilize, as interest rate cuts, continuation of the IMF program and non-controversial elections in the near future could lead the stock market to further gains.
