Even though I consider myself a fundamental investor and usually don't get into panic or confusion on small political issues but I think the issue of Raymond Davis is not that "small". Pakistani Government is facing a dilemma, if they let go Raymond then they have the face the strong demonstrations and protests from opposition parties especially religious parties. Media off course will take the side of opposition as well and if they do not let go Raymond then their relationship with their biggest donor (who are also supporting stock market since they are leading the market for six months or so) might go to jeopardy. I guess the implications of any decision of government are very uncertain but unpleasant for sure. On a long term basis, satisfying America either through a release of Raymond or convincing them to face the court might be a better option. I think it will not be possible for market to appreciate under these conditions so investors should invest with caution at this moment.
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